ato logo
Search Suggestion:

Early engagement is key to understand obligations for commercial deals

Last updated 27 March 2023

Significant business or commercial deals such as a restructure, refinancing or sale of a commercial property can be complex, and the tax consequences can be difficult to understand.

Our Commercial deals program engages with private vendors selling their business or commercial assets with a value more than $20 million.

Tax agents who have already taken advantage of our pre-lodgment service found it beneficial in gaining certainty, while reducing their client's risk of a future review.

Key tax themes that have emerged from early engagements are:

  • capital gains tax events (especially A1 and K6)
  • calculating proceeds and cost base correctly
  • earnout arrangements
  • utilising discounts, exemptions, and rollovers
  • determining whether the transaction is capital or revenue in nature
  • tax implications of restructures
  • the role of trusts in a transaction.

If your clients are entering transactions that include one of these elements, please consider early engagement with the ATO.

Engage with us early and request a pre-lodgment agreement about your commercial deal by emailing