Business restructures can be extremely complex as there are many areas that need to be taken into account. Capital gains tax, GST, stamp duty as well as employment laws are just some of the areas that need to be considered.
Restructures may be necessary to create better asset protection, save on income & capital gains tax, streamline administration and give staff members’ equity in the business.
Far too often we see shares and units owned by individuals rather than a trust, which therefore means the tax that family members pay may be higher than it needs to be.
Also, too often we see capital assets such as factories or other real estate owned by risky trading companies or trusts rather than being owned totally separate from the business operation.