We were approached by a new client who had purchased the business and the business had substantial growth.

When purchasing the business, the shares in the business were purchased in the personal name of the director.

From my conversations, it became clear that this was an error and the business profit was intended to be distributed among the family group. We worked closely with the family group to restructure the business ownership by transfer of the shares to a discretionary trust.

The restructure involved the following advice:

  • Capital Gains on transfer of the shares and tax implications;
  • Application of Small Business CGT concessions;
  • Valuation of the business for the CGT market value;

Though the above work, we were able to successfully apply Small Business CGT exemption that resulted in no income tax payable.

The client was subsequently audited on the restructure including the valuation for the business was reviewed by the ATO. The ATO agreed on the valuation and the CGT exemption applied.

Our advice and processes are built on qualitative aspects and are robust enough to stand the scrutiny of ATO audits. If you are looking for definitive advice that is delivered in clear and concise manner that would give you the peace of mind, we can assist.