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Flowchart of business structure problem

Discussion in 'Accounting, Tax & Legal' started by Kria, 16th Jun, 2008.

  1. Kria

    Kria New Member

    Joined:
    16th Jun, 2008
    Posts:
    3
    Location:
    Launceston
    Please see attachment re. business structure problem. I have attached this on another thread but thought it deserved its own :D
     

    Attached Files:

  2. MattR

    MattR Well-Known Member

    Joined:
    23rd May, 2007
    Posts:
    229
    Location:
    Sydney
    As mentioned in the other thread companies do not get the general 50% CGT discount. Now an important component in the value of a FP business is the trail so in most inastance there is going to be a capital gain when its sold. With this structure the only way to get the general 50% CGT discount would be to sell the share from the company to the new "FP". You may find potential buyers are reluctant to buy a company, which then means the company gets the Capital Gainm which cuases its own headaches.

    I'd be at least holding the assets in a DT.

    Other than that, there may be some part of the Family Trust or Interposed Entity rules that could be a problem with possible pushing of trust losses from one trust to another - but I'd need to read a heap more.

    Cheers