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 eerequest@ato.gov.au.
Engage early with our Commercial Deals program so we can help you understand the tax implications when selling business or commercial assets for a value of over $20 million.