Getting the SME structure right: art v science

Morgan, Troy
May 2014
Taxation in Australia;May2014, Vol. 48 Issue 10, p578
Academic Journal
Determining an appropriate structure for a taxpayer's business requires a fine balancing of many issues, which may include any or all of income tax, capital gains tax and state tax considerations, asset protection, potential employee participation, future funding requirements, and compliance costs and succession planning issues. Further, the right structure will take into account the client's future needs and will be able to grow with the client and afford a considered exit strategy. While the legal concepts of structuring are generally well understood (the science), it is combining these concepts with the day-to-day practical matters that is most difficult (the art). This article highlights the necessary considerations when structuring or restructuring and how to achieve the right balance between what is technically correct and what will be practically efficient. The article is intended to provide a high-level overview of the key income tax considerations only.


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