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Demystifying Consolidation for SMEs - Opportunities 10 Years On

Published on 18 Apr 2013 | Took place at Ernst & Young, Adelaide, SA

    The consolidation law has been wit us for over 10 years, and is now an established aspect of tax law, relevant to all clients who have company groups.
    More and more SMEs (and their advisers) are realising the opportunities the law brings in enhancing the M&A tax outcomes and simplifying group structures. The opportunities are just as applicable for SMEs as they are for the big end of town. Whilst we have seen a regular stream of law changes over the past 10 years, the fundamental principles and opportunities for SMEs remain relatively unchanged. Tax practitioners cannot afford to overlook consolidation as a useful option in structuring business groups and transactions.
    This seminar applied a practical business approach to the rules and provides practitioners with the tools to properly advise their clients.

Individual sessions

Demystifying consoldation for SMEs

Author(s):  Julian LIAN,  Sean VAN DER LINDEN,  Terri SYMONDS

This paper shows how tax consolidation can work in a business restructing including:

  • establishing a business structure - use of company groups
  • when should I consolidate an existing group
  • eliminating 'management charges' and value shifting
  • demystifying ACA calculations
  • what consolidations doesn't cover.

It also cover the key M&A opportunities (and risks): 

  • purchasers' and vendors' perspectives
  • access to losses and franking credits
  • enhanced tax values of assets
  • aligning purchaser and vendor needs
  • avoiding book to tax differences
  • obtaining 'clean exits' from groups
  • company vs asset transactions.
Materials from this session: