Australia’s adoption in 1986, of capital gains taxation (CGT), employed a broad concept of gain not confined to the simple case of a purchase and resale at profit. The imposition of capital gains taxation on damages appeared to be a consequence of the adoption of a very broad conception of what is to be considered as an asset. The subsequent reformulation of what is a CGT event continued the continued the philosophy of broad inclusion. This paper asks what should occur in the process of assessing damages , and how to protect the compensatory value of an award.
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