Nexia Australia offers to undertake a Business Concession Review to identify anything that could cause the eventual sale of your business to miss out on any tax concessions.
At Nexia, we enjoy working with business owners through their business lifecycle – start-up, growth, maturity, exit. We believe that business owners should be rewarded for what they do – taking on risk, creating employment and wealth.
But it saddens us to see a business owner not fully realise their just rewards only because certain matters didn’t get a little attention along the way.
They poured all those years of hard work into their business, only to see up to 47% of their reward disappear in tax. That’s a long way from a possible 0% disappearing, if only those matters had got that little bit of attention.
Having advised on many business sales over the years, we have seen situations where things featured in a business years before being sold which caused a denial of one or more tax concessions. This happens more often than you might think, and the saddest part is that in the vast majority of cases, some planning in the years before the sale would have preserved those generous concessions.
At Nexia, we pay attention and we see solutions.
The review will include:
- Whether the business or its legal structure feature anything that could deny the CGT small business relief concessions (there are some well-known culprits).
- For a business commenced pre-September 1985, whether it might have lost its tax-free pre-CGT status.
- Identify assets to be extracted from a company or unit trust in order to facilitate a sale by way of selling the shares/units (which can potentially produce a lower tax impost).
- Anticipating things to be done to satisfy the 15-year CGT exemption.
- Noting any other matters that come to our attention.
- A concise report will be provided that sets out any issues identified and recommendations.
- Undertake the review;
- Prepare and deliver the report; and
- Meet with you to discuss.
Ideal time to have the review
The ideal time to undertake this review is at least 10 years ahead of the anticipated sale. Leaving it until less than 10 years away escalates the risk of being unable to redress identified issues that will deny the tax concessions.
We will deliver the above for an upfront agreed price that is tailored to your business.
This will be a relatively small cost that can provide great peace of mind is in knowing that anything which might prevent maximising your after-tax funds from exiting your business has been identified.
The scope and fee applies individually on a per business basis, not to a group of multiple businesses.
If you would like us to undertake the review, please provide the following:
- Group structure diagram
- 30 June financial statements for the last five years
- Most recent tax return
- Most recent management accounts
- Estimated working capital amount for the business
- Estimated value of the business
- Estimated values for all assets of related parties; related debts
- Whether any Family Trust Elections and Interposed Entity Elections made.
To register for a Business Concession Review, please see the link below to complete the registation form and a Nexia Advisor will contact you.