Winding up your business - Opportunities and pitfalls
This paper looks at a range of issues that should to be considered when a decision has been made to sell or wind up a business. Most people think about capital gains tax implications however the matter can be far broader than simply minimising the impact of CGT.
This paper explores the following key considerations:
whether the business assets or the entity should be sold
the MNAV test including valuation issues, liabilities and application of recent cases, what’s in and out and planning opportunities
what happens after the business is sold - use of retirement concession, liquidating the company/vesting the trust
what to do with loans and/or UPEs that exist
dealing with pre-CGT assets and reserves
Part IVA implications of certain planning decisions or structuring to get within the concessions (such as making trust distributions)
accounting implications (e.g. reserves for SB gains).
When business is going well in Australia, the inevitable question is often asked of advisers - should we consider expanding offshore? Businesses want to know what it is they need to consider from establishing a structure to sending staff offshore to set things up. Expanding offshore can be daunting and risky but can also provide a huge opportunity for our clients. This paper looks at a range of tax issues relating to the expansion of Australian business operations offshore using a case study involving the deployment of a sales force to Singapore and commencement of manufacturing in Indonesia to work through the Australian income tax and employee tax issues requiring consideration.
Issues explored include:
tax and commercial considerations in setting up business
how profits are taxed
elimination of double taxation
Taxation of Business Restructures
structuring employee contracts
taxation of individuals including residency and treaty interaction
other Australian employment tax matters including FBT and SGC.
Trust distributions: The good, the bad and the ugly...
It’s high noon for the Commissioner of Taxation and the Taxpayer on trust distribution issues. Trust distribution minutes are now subject to far greater scrutiny than at any time in the past. It is essential to achieving tax effective outcomes that resolutions are carefully prepa red - based on a thorough assessment of the trust income, the provisions of the trust deed and a correct application of trust and tax law to the facts.How did your practice fare on these issues in 2013 and how should you forward plan for 2014?
This paper allows you to make an assessment by providing a series of typical - but less than straight forward - case studies on a range of year-end scenarios. Materials provided will include sample trust deeds, pre 30 June scenarios and examples of ‘good, bad and ugly’ trust distribution minutes.
Specific topics covered include:
what am I looking for in the trust deed?
effectively distributing to entities within a family group
tricky issues concerning streaming capital gains and franked dividends
‘balance income’ resolutions – the Commissioner’s shifting views