M&A Update: The Importance of Apportioning the Purchase Price in a Sale of Business Agreement

Apportioning the purchase price in a sale of business agreement among the various assets being sold and purchased may help avoid tax headaches in the future. A sale of business comprises the sale and purchase of multiple assets, such as goodwill, trading stock, depreciating assets, buildings (including post 1979 capital [...]

2019-05-17T15:05:49+10:00May 17th, 2019|Categories: Commercial|Tags: , |

The Breakfast Club – “Recent developments in the tax residence of individuals, companies and trusts”

Robert Gordon of our firm has written an article for the Tax Institute Breakfast Club in relation to recent developments in the tax residence of individuals, companies and trusts. Please click on the link below to view full article. The Breakfast Club - Recent developments in the tax residence of [...]

2019-05-08T14:56:21+10:00May 8th, 2019|Categories: Taxation|Tags: |

Proposed changes to the monster that is Division 7A

Submissions to TreasurySubmissions have now closed to Treasury concerning their Consultation Paper “Targeted Amendments to Div. 7A Integrity Rules” (October 2018– Consultation Paper).Whilst it is hoped that the submissions to Treasury may finally provide some worthwhile improvements to Div. 7A, the fact that this whole process started in May 2012, and [...]

2018-12-06T17:45:52+10:00December 6th, 2018|Categories: Taxation|Tags: , , |

ATO response to High Court decision in Bywater

In a previous article we discussed the High Court of Australia decision in Bywater & Ors v FC of T: see https://pointonpartners.com.au/australian-tax-residence-for-companies-revisited-by-high-court-after-43-years/ Subsequent to the High Court decision, the ATO withdrew its previous ruling TR 2004/15, and issued a new draft ruling TR 2018/D3, and an exposure draft Practical Compliance [...]

2018-08-31T16:15:50+10:00August 24th, 2018|Categories: Taxation|Tags: , |

Federal Court decision highlights the urgent need for change to income tax residency rules for individuals

In the recent decision of the Federal Court in Harding v Commissioner of Taxation [2018] FCA 837, it was found that Mr Harding, an Australian citizen who lived and worked abroad for various periods, but focusing on March 2009 to February 2015, was a resident of Australia under the expanded [...]

2018-09-27T16:28:58+10:00August 17th, 2018|Categories: Taxation|Tags: , , |

Small business corporate tax rate: Exposure draft legislation released regarding passive income threshold

In our recent article entitled “Corporate Tax Cuts. What do they mean for you?”, we referred to the relevant minister (Kelly O’Dwyer) questioning the ATO provisional interpretation of when a company would be “carrying on business” for the purpose of the reduction in the small business corporate tax rate. The [...]

2018-08-28T15:29:02+10:00October 9th, 2017|Categories: Taxation|Tags: , |

Taxpayers and advisers take note: it will soon be time to pay-out UPEs or convert them to Division 7A complying loans to avoid paying deemed dividends

Background In Practice Statement 2010/4, the Commissioner set out three safe harbour investment options that taxpayers could avail themselves of to ensure an Unpaid Present Entitlement (UPE) of a company from a trust, did not attract the application of Division 7A. These options involved having the UPE funds invested under [...]

2018-08-28T15:44:48+10:00September 25th, 2017|Categories: Taxation|Tags: , , |