• Changing, selling or closing your business

    There are tax implications if you:

    • register a business but don't actually start the business
    • change your business entity type because you restructured your business
    • stop operating your business
    • sell the business
    • wind up your company.

    Watch:

     

    When changing, selling or closing a business:

    • check whether your state or territory government has any special requirements
    • check that you have met all lodgment, reporting and payment obligations with any government agencies you have dealt with
    • work with your tax adviser to address the taxation issues of an exit strategy or succession plan well in advance to minimise risk
    • check whether you may have to pay GST or capital gains tax on some of the business assets you sell, including
      • land
      • buildings
      • intangible assets – such as patents, licences or goodwill.
       

    Some exceptions and concessions apply

    • cancel
      • your GST registration within 21 days of selling or ceasing business
      • your ABN within 28 days – if your business starts to trade again in the future, or you start a new business and your business structure remains the same, you can apply to have your ABN reactivated
       
    • keep your business records for at least five years after the records are prepared or obtained, or the transactions are completed, whichever occurs later.

    See also:

Last modified: 10 Nov 2016QC 31729