Passing control of a trust
Good estate planning starts at the beginning of one’s working life, not at the end. In the early 1980s, many family trusts were set up with a vesting date of only 40 years because it was considered the best way to avoid the uncertain issues relating to the anticipated introduction of capital gain tax (which […]
Super benefits to children
For a parent the most difficult and frightening happening to consider is what will happen to your children in the event of your untimely death. But for parents in New South Wales, there are a number of avenues to financially protect your children in the event that something tragic happens to you. If the parent […]
Recovering control of a trust
John Smith lived in Condobolin. He had run a successful business in the town for 30 years through the Smith Family Trust (SFT) and the time had come to pass control of the trust to his son Harry. Harry was married with two young children. He had been working in the business for many years. […]
Asset protection and bankruptcy
Every business comes with risk. Asset planning is an attempt to separate the beneficial ownership of assets from the risk of business failure and personal exposure. Lawyers and accountants are regularly asked to advise clients about the steps they should take to shield their assets from the risks of financial failure. Many asset planning structures […]
Replacing a liquidator
Recent reforms under the Insolvency Law Reform Act intended to make the replacement of an External Administrator/Liquidator easier for creditors to achieve but in reality, it may have had the opposite effect. In the past, liquidations instigated by the directors/shareholders required the appointee take the lead and put a resolution to creditors within 18 days of appointment […]
Defending unfair preference
In every liquidation, Liquidators seek to identify and recover monies paid to creditors where it can be shown the recipient knew or suspected a Company was insolvent at the time payment was made. The primary purpose of the law of Unfair Preference Claims is to ensure that no one creditor should receive more than others […]
Liquidator in a creditors voluntary
The Liquidator will; Take control of, and realise the assets of the insolvent company Distribute available funds to proven creditors Investigate the affairs of the company Report to ASIC any issues found through the investigation process Consider various legal actions against debtors, creditors and others The effect of a Creditors’ Voluntary liquidation? When a liquidator […]
Borrowed money for a business debt
It was about 1990 when the ATO was asked about the tax deductibility of interest on a loan a business may have taken out to repay a tax debt. It was the third time, according to ATO records, that the matter was raised. Of the two previous requests for clarification, one was made as far […]
Div 7A Compliance
Division 7A is an integrity measure that was designed to prevent companies from making tax-free distributions to shareholders or their associates. This can occur where distributions of profit are disguised as loans or other transactions. This effectively allows the shareholder or their associate to have access to the corporate tax rate. A consequence of Division […]
Div 7A Reminders
Div 7A loans result in a deemed dividend. But not all loans from private companies to their shareholders fall under Div 7a. There are ways around it. Div 7A Loans A loan from a private company to a shareholder or associate is treated as a dividend, unless repaid in time or subject to an exclusion. […]
