Reviewing Earn-Outs and other Practical Issues when Buying and Selling Businesses

Published on 24 Jul 2008 | Took place at Kooyong Tennis Club, Melbourne, VIC

Every day, we are asked to advise our clients on buying or selling businesses. As these transactions become more complex, the taxation implications become more and more difficult. Some questions that may pop up include:

• have we structured the sale or purchase in the most tax efficient manner?
• what issues would the other side's tax adviser raise and how should we respond to protect our client's interests?
• what are the implications of earn-outs, both from the vendor and the purchaser's perspective and how do we apply Taxation Ruling 2007/D10 to get the best outcome for our client?
• what is the commercial lawyer's role and why should I care?

This event canvassed these and many other issues, with a particular focus on how to practically apply the Commissioner's earn-outs ruling.