Acquirers of shares need to take note of an important 2014 tax law change. The change is in the area of loss offsets between group companies.
Impact of Remission income on Loss Offsets
This article addresses a company that has a loss on account of expenditure which the company ultimately never pays. The particular context is use of the loss by way of offset against profits of a group company. What happens when the loss company is relieved of the obligation to pay the expenditure?
Issues on selling a business Part 2
This is the second in a series of articles that will appear identifying discrete issues in selling a business.
Minimising Tax Penalties (Voluntary Disclosure)
Taking an incorrect tax position carries the risk of penalty by what are referred to as shortfall penalties. These are assessed at a percentage of the shortfall in tax paid that has arisen as a result of the incorrect tax position.
Shareholder Disputes - Managing exits by a shareholder
Take a private company setting, say 3 individual sharheolders. One of the shareholders has begun to cause trouble. The other two shareholders want him or her gone. What can be done?
Joint Ventures
The starting point with any proposed joint venture is the choice of structure. The most common form of joint venture is an unincorporated joint venture (UJV). An alternative is to form a special purpose company for the purpose (or a limited partnership or trading trust might be used).
Issues on selling a business Part 1
This is the first in a series of articles that will appear identifying discrete issues in selling a business.
Land Tax - Rezoning
What are the tax implications here? There are three specific land taxing provisions that may apply. GST considerations are also relevant.
Trust Reforms
The Law Commission has issued its final report recommending wholesale changes to the Trustee Act. The report has been tabled in Parliament and is awaiting the Government's response.
Don't we already tax capital Gains?
If you ask that question of a property developer they will say yes. Gains from development of land are invariably taxed, unless held for investment purposes only.
Mergers & Acquisitions
In the context of a business disposal, a top priority for the vendor is a clean exit free of concern about waranty claims.
Winding up insolvent Look Through Companies
Does this crystallise a tax liability?
Supply Agreements & Distribution Agreements
Pronounced focus on cartel behaviour by the Commerce Commission should be of note for all suppliers, be they import/distributors or local manufacturers. In this article, I draw your attendion to proposed legislative changes in relation to price fixing and output restrictions.
Structuring Choices (Alesco)
The Court of Appeal has emphatically confirmed a tax avoidance finding against Alesco. The decision demands a major rethink on what structuring choices taxpayers may take.
Disposal of Unwanted Companies
Unwanted companies can be disposed of in one of two ways.
Consumer Law Reform Bill
There is currently a bill before Parliament which, if passed, will extensively overhaul consumer law. All businesses will be forced to review their contracts to ensure compliance with the new laws.
Convertible Notes or Preference Shares
The choice of raising funds by way of an issue of convertible notes or preference shares is usually driven by a mixture of security and tax considerations.
Tax Avoidance v Tax Evasion
If tax avoidance and tax evasion were really the same thing, as the Honourable Mr Shearer and the Honourable Mr Norman believe, then anyone who has done what our good doctor friends Penny & Hooper have done, had better watch out.
Lease Inducements
This is a big change in our tax law that will affect a good number of businesses.
Expense Reduction Agreements
The premise behind an expense reduction agreement is that by engaging expense reduction analysts you will be able to increase profits through cost cutting.