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Transaction costs

Published on 04 Sep 2013 | Took place at The Tax Institute, Sydney , NSW

    In the context of mergers & acquisitions (“M&A”) and group restructures, the quantum of the various transaction costs can be quite significant. Such costs include legal costs, duties, borrowing costs, various types of advisory fees, arranger fees, etc. The income tax and GST treatment of transaction costs will depend on various facts associated with the transaction, including the nature of the expense, whether they are purchaser or seller costs, and whether they are incurred by a tax consolidated group.
    This practical presentation provides an overview of the various issues that need to be considered in determining the income tax and GST treatment of transaction costs in various scenarios, including:
  • successful v unsuccessful acquisition
  • seller v purchaser
  • costs incurred by the Target entity
  • costs incurred after the Target joins a tax consolidated group
  • costs charged to an “arranger”
  • treatment of borrowing costs
  • apportionment of costs
  • restructuring costs.

Individual sessions

Transaction costs

Author(s):  Mark Edmonds ,  Craig Duncan

In the context of mergers & acquisitions (“M&A”) and group restructures, the quantum of the varioustransaction costs can be quite significant. Such costs include legal costs, duties, borrowing costs, various types of advisory fees, arranger fees, etc. The income tax and GST treatment of transaction costs will depend on various facts associated with the transaction, including the nature of the expense, whether they are purchaser or seller costs, and whether they are incurred by a tax consolidated group.

This practical presentation provides an overview of the various issues that need to be considered in determining the income tax and GST treatment of transactioncosts in various scenarios, including:

  • successful v unsuccessful acquisition
  • seller v purchaser
  • costs incurred by the Target entity
  • costs incurred after the Target joins a tax consolidated group
  • costs charged to an “arranger”
  • treatment of borrowing costs
  • apportionment of costs
  • restructuring costs.
Materials from this session: