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Tax Effective Liquidation - How To Get Your Money Out

Published on 29 Oct 2013 | Took place at EY, Adelaide, SA

    Cleaning up structures and winding up companies to extract profits is an important part of maintaining and updating a group structure. This practical session was aimed at tax practitioners who act for corporate or family groups and combines the liquidator’s perspective with that of an experienced tax practitioner and focused on the formal and legal processes of a member’s voluntary liquidation together with tax planning strategies.

Individual sessions

Tax effective liquidation - how to get your money out

Author(s):  Tim CLIFTON,  Alistair HUTSON

The regulatory and legal issues covered by this paper include:

  • deregister vs members voluntary liquidation
  • the ATO’s approach as a potential creditor
  • preparing the company for appointment of a liquidator
  • dealing with shareholder credit loan accounts
  • the ATO clearance process – what’s involved, is it a practical concern

The tax planning issues covered by this paper include:

  • what should be done before appointment, e.g. dividends, returns of capital, release of debts
  • what action should be taken by the liquidator, e.g. in specie distribution of assets, distributionof reserves
  • Section 47 planning and strategies, e.g. different types of reserves, use of pre-CGT reserves and CGT discount/small business concessions
  • achieving insolvency – release of debts, impact on company and impact on related parties
  • stamp duty.
Materials from this session: