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Expanding TARP to capture goodwill and mining information


From 14 May 2013, the meaning of “taxable Australian real property” (TARP) has been expanded to capture goodwill and mining information. This article discusses the challenges facing the government and foreign residents when dealing with this new measure. It points out that the new measure will cause Australia’s domestic laws to be out of step with our key double tax agreements in relation to the taxation of capital gains realised by foreign residents, and that this may interfere with the outcome sought to be achieved by the new measure.

It discusses the meaning of goodwill and suggests that the new measure may well expand the scope of our capital gains tax provisions to capture value attributable to non-TARP assets as well as TARP assets. It discusses how the courts have dealt with the separate identification of mining information as an asset, and how one might value that asset in the hypothetical transaction required by our CGT provisions.

Author profile

Martin Fry FTI
Martin Fry, FTI, is the Practice Leader of the Allens Tax Group. With over 20 years as a Partner of Allens, Martin advises corporations on a broad range of tax issues across a wide range of sectors, including resources, infrastructure, financial services and IP-intensive businesses. In recent years, Martin has focused on contentious transfer pricing matters, including audits, settlement negotiations, mutual agreement procedure and litigation. Martin has taught Corporate Tax at a postgraduate level at the University of Melbourne. - Current at 12 May 2021
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