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Voluntary liquidation - Getting the money & assets out of a company paper

Member Price: $57.00
Non Member Price: $75.00

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Published on 27 Aug 09 by NATIONAL DIVISION, THE TAX INSTITUTE

Distributing money and assets out of a company by way of voluntary liquidation can often be a highly tax-effective method for returning value to shareholders provided care is taken to comply with the various statutory and judicial requirements. This paper covers:

  • the reasons for liquidating and how it compares with other capital management approaches such as share buy-backs and capital reduction/share cancellation
  • the basic framework and the operation of section 47;
  • the ‘Archer Brothers principle' and the required accounting records;
  • specific issues associated with distribution of assets in specie;
  • the interaction with the franking rules, and managing the challenges associated with the benchmark franking rule and the timing of when franking credits arise;
  • specific issues for pre and post CGT shareholders including the impact of CGT event K6;
  • the interaction with the CGT discount and the small business CGT concessions;
  • specific issues arising for consolidated groups; and
  • stamp duty and GST issues.

Author profile

Michael Butler CTA-Life
Michael Butler, CTA, is the Partner in charge of the Finlaysons Tax & Revenue Group. Michael advises domestic and foreign clients on federal, international and state tax matters, and has a special interest in corporate restructurings, cross-border investment, property, wine and mining taxation, trusts, and estate and succession planning. Michael is a past chair of The Tax Institute’s South Australia State Council and a regular contributor to Institute events. Michael was made an Honorary Life Member of The Tax Institute in 2024. - Current at 13 May 2025
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This was presented at 17th National Tax Intensive Retreat: Extracting Value .

Get a 20% discount when you buy all the items from this event.

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Getting value out of companies - Part 1

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Getting value out of companies – Part 2

Author(s):  David MARSCHKE

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Voluntary liquidation – Getting the money & assets out of a company

Author(s):  Michael BUTLER

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Offshore wealth - Accessing money overseas

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The trust has served its purpose - Now let’s get the money out

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