Getting money out of SME companies paper

Published on 11 Oct 12 by VICTORIAN DIVISION, THE TAX INSTITUTE

When the revenue tail starts to wag the commercial dog, strange outcomes and potential dangers are inevitable. This paper looks at some of the issues to be addressed for SME clients who want to extract money from their companies without being bitten.

Issues covered include:

• debit loans (Div 7A)
• credit loans (Div 974 debt–equity)
• making UPEs and how to get the money out
• share buybacks
• capital reductions
• dividends (including streaming and classes of shares)
• excessive remuneration and s109
• sections 45A and 45B
• demergers
• liquidations.

Author profile

Tony Riordan

Tony Riordan, CTA, is a Tax Partner at Riordans Lawyers in Melbourne, a boutique commercial law firm. He has degrees in Law and Commerce and a Masters in Taxation Law from Melbourne University. His areas of practice include SME structuring, estate planning for high wealth individuals and transaction structuring. - Current at 23 April 2014

More by Tony RIORDAN

• Lessons from experience - Business entity structuring paper - 01-May-2014
• Taxpayer alerts – Be alert and alarmed paper - 01-May-2014
• Getting money out of SME companies - 01-November-2012
• Proposed trust tax changes - Greater certainty? What to expect before 30 June 2011 paper - 20-May-2011
• Trusting into the future paper - 19-August-2010
• Member profile - 01-August-2009
• At call loans under the Debt/Equity regime - 01-October-2005
• "At call" loans paper - 04-August-2005
• Business succession planning for shareholders, unitholders and partners - 02-May-2002
• Entity Taxation - 08-September-2000

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