Published on 27 Aug 08
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
Division 250 had a difficult birth and is proving to be a troublesome infant. The law is derived from anti-avoidance issues connected with dealing with tax exempt state government entities but it now has an impact on ordinary, commercial real estate transactions. This presentation considers some of the practical difficulties and unresolved issues arising from the application of Division 250, including:
- the impact of financing multiple properties with single debt facility
- what is the most appropriate measure of expected financial benefits?
- how to calculate the value of a building at the end of an arrangement
- whether it is appropriate to apply Division 250 to foreign property held through a foreign entity
- the impact of borrowing from an offshore financial institution on the limited recourse debt test.
Brian Lawrence FTIA is a Partner with PricewaterhouseCoopers. He has specialised in corporate tax for over 20 years and has been involved in many corporate activities including mergers, acquisitions and Initial Public Offerings. Main client responsibilities include property companies, property trusts, property developers, banks, financial institutions and funds management activities. Clients include major Australian corporate groups. Brian has extensive experience advising on real estate tax matters including IPOs for a significant number of listed property trusts and property syndicates, sale and leasebacks and the establishment of numerous funds and stapled structures. He also has extensive experience in performing tax due diligence work on acquisitions. Current at 27 August 2008
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Michael is a Director specialising in the taxation of real estate at PricewaterhouseCoopers, with a particular focus on cross-border real estate
transactions. Michael has advised on a number of IPO’s for Australian listed property trusts and the acquisition of assets in various jurisdictions
including the USA, Japan, Singapore and Germany. Current at 04 August 2008
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