You’re buying business or company. At some point in the future you may wish to sell it. Are you aware of the relevant provisions of capital gains tax law?

There are special capital gains tax implications if you sell the business within 12 months of purchase. If this is your plan, have you considered these?

There may be transfer (stamp) duty implications if you acquire business assets or if there’s any internal trading entity restructuring (e.g. family partnership to company).  Have you considered these?

Are there any GST or other tax implications for your purchase?

Have you consulted us on how to value assets for the best tax advantage?

Does the draft contract identify specifically the assets you are purchasing, the liabilities you are assuming and the price, date and time you’d take over the business?

In drafting your offer, have you included escape clauses for finance, record inspections, obtaining necessary licences and rights, other transfers, and achievement of minimum trading levels during the trial period?

Have you arranged for total control over the recording of cash sales and banking for the trial period?

Is the business being sold as a going concern or will the current business be wound up?

If buying part of a company or entering a partnership, do you know of any limits on one person making a commitment on behalf of the business?

As you can see, the tax implications of purchasing a business or company are very diverse.

Need help?

If you require any further information, please contact one of our tax accountants on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment or teleconference. Alternatively, please click here to submit an online enquiry form.