Published on 23 Jun 05
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
Achieving a tax effective result on the sale of your business isn't simply a result of signing a sale contract. Different strategies may need to be employed depending upon the operating structure in place, the identity of the owners, and the underlying tax profile of the operating business. A more tax effective exit may be achieved through de-merging part of a business prior to sale, by undertaking a share buy-back instead of a sale, or by entering the consolidations regime to enable assets to be transferred. This paper explores the planning opportunities available to put you in the best position to achieve a tax effective exit. Matters covered include:
- undertaking a de-merger
- using a share buyback
- returning capital
- restructuring shareholdings
- entering the consolidations regime
- other planning strategies.
Andrew is a partner in the Sydney law firm Brown Wright Stein Lawyers. His clients are accountants and lawyers in public practice that require advice on tax issues impacting on their clients. Andrew specialises in tax issues common to the SME and high wealth individual sectors.
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23 September 2019