Published on 17 Oct 13
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
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).
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