The Australian Taxation Office (ATO) has issued Taxation Determination (TD) 2018/15 on whether a capital gains tax (CGT) event D1 happens if a taxpayer grants an easement, profit à prendre, or licence over an asset. The ruling provided in TD 2018/15 answers as follows:
Yes. CGT event D1 (about the creation of rights) rather than CGT event A1 (about the disposal of an asset) happens if a taxpayer grants an easement, profit à prendre, or licence over an asset. Consequently:
- no part of the co…