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When it all needs to come undone – Dismantling structures paper

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Non Member Price: $75.00

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Published on 21 Jul 22

There comes a time when our clients want or need to retire. Some do so by selling their business or handing it down to the next generation and immediately taking on retirement pursuits. Others prefer to transition to retirement gradually, in line with a detailed and gradual succession plan. Either way, their retirement and the succession of the business will have tax consequences that can vary significantly depending on the business structure, tax profile of various assets and taxpayers, and the steps taken to give effect to the succession and retirement. Practitioners should consider the tax implications of likely strategies well before their client begins writing their retirement speech or LinkedIn post. This paper delves into the tax implications arising from the dismantling of structures and the implementation of succession plans for family businesses, including:

  • Exiting stakeholders and structures, including the impact that this can have on the tax profile of family entities
  • Extracting personal wealth and assets from an entity upon or in the lead-up to retirement
  • Separating out one or more businesses and / or investments between family members or entities
  • Transferring assets to related family entities
  • Application of the share buy-back provisions
  • Funding succession / transition; and
  • Earn-out arrangements

Author profile

Mark Molesworth CTA
Mark Molesworth, CTA, is a tax partner at BDO and a member of The Tax Institute’s SME Technical Subcommittee. Mark has many years of experience in advising taxpayers with respect to all areas of taxation, including CGT, FBT and income tax. He also provides taxation advice to other smaller accounting and legal practices in respect of their clients. - Current at 25 September 2024
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This was presented at Yarra Valley Tax Retreat .

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When it all needs to come undone – Dismantling structures

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