The Australian Financial Review --- Page: 5 : 19 November 2007 Original article by Caitlin O'Toole
LexisNexis Summary
A new Australian tax ruling will create uncertainty for takeovers and acquisitions. The Australian Taxation Office has issued a draft ruling on "earn-out" rules. The ruling excludes extra payments based on the performance of the asset from its cost when calculating capital gains tax. Tax experts say the ruling is not commercially workable and will lead to unfair and unreasonable outcomes.
