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s99B Carve-outs are your way out. They protect you from s99B ITAA 1936.
s99B Carve Outs
s99B carve-outs mean that s99B can’t turn the entire payment into assessable income that neither qualifies for the 50% CGT discount nor for the offset with capital losses.
Bradley Murphy and Darren Catherall of Murphy Tax Lawyers in Sydney will tell you more in this episode.
Here is what we learned but please listen in as Bradley and Darren explain all this much better than we ever could.
To listen while you drive, walk or work, just access the episode through a free podcast app on your mobile phone.
s99B Carve Outs
Let’s make it very short.
Corpus
The big carve out is corpus. That is where the music is.
To escape from s99B, corpus is your best way out. But this is also where most disputes happen. What your client sees as corpus is probably fundamentally different to what the ATO sees as corpus.
NANE
The other carve-out – much less frequent and less relevant – is NANE. Non-Assessable Non-Exempt Income. If your income is NANE in Australia, then s99B can’t hurt you either.
And that is it. These are your two main carve-outs. But of course we summarised this quite drastically. We go into a lot more detail in this episode. So please listen in.
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Disclaimer: Tax Talks does not provide financial or tax advice. All information on Tax Talks is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.
Last Updated on 20 November 2023
Tax Talks spoke to Bradley Murphy and Darren Catherall - Tax Partner at Murphy Tax Lawyers and Advisors - for more details.
