Published on 08 Nov 12
by NATIONAL DIVISION, THE TAX INSTITUTE
Microbusinesses grow into small businesses, which in turn expand into large businesses and, with a touch of luck and good management will become very large businesses. This paper is about keeping pace with the tax and commercial structures appropriate for the growing enterprise. Common examples of inflexible and inappropriate structures as the business grows will be examined.
The paper focuses on:
- restructuring to better suit the owners’ changing circumstances
- the income tax and GST implications of restructuring
- creating better structures using CGT rollovers exemptions and demergers
- transaction costs including stamp duty and GST
- dealing with problem assets (know-how and WIP)
- consideration of Part IVA.