Published on 03 May 07
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
Extracting funds from a controlled company requires strategies that navigate around a trio of pitfalls - tax on the company, further tax on the shareholder and a penalty debit to the franking account. This paper looks at a few of the possibilities for a harmonious outcome, and some of the dissonant dangers that lurk in this territory:
- accessing retained earnings
- dividends and dividend access shares
- stripping and streaming rules
- capital reductions
- loans out
- liquidation of companies
- redundancy payments and other benefits
- avoiding the wash-out of concessions.
Graeme S COOPER
Graeme is Professor of Taxation Law at the University of Sydney and Chairman of the NSW
Technical Committee. He has worked as a consultant to the ATO, Treasury, Board of Taxation, OECD, World Bank and IMF. He is a frequent speaker at Taxation Institute events and has written many articles in Australian and overseas
journals. He was admitted to legal practice in NSW (1980) and Victoria (1999) and practised commercial law and tax in Sydney before entering teaching. He has taught tax in Law Schools in Australia, Europe and the United States, and
holds degrees from the University of Sydney, University of Illinois and Columbia University, New York.
Current at 12 March 2008 Current at 03 April 2008
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