For decades a partnership was the structure of choice for many farming businesses. This was primarily due to the family nature of the farming activity, where the husband and wife carried on the farming business. As time went on, it was not uncommon for a child or children to join the partnership.
Partnerships have been out of vogue as a structure for many years now, however there are still a large number of farming partnerships in existence. Some are what we would describe as “legacy” partnerships where some restructuring has occurred in the past, but the partnership was retained, usually because a large tax bill would have arisen to transfer either the livestock or plant and equipment to the new entity. This saw bailments of livestock and leases of farm equipment arising until it became more palatable from a tax perspective to wind up the old partnership.
For many years the wind-up of a partnership was fraught with difficulty due to the uncertainty in the way the legislation operated, particularly where there was the death of a partner. Legislative change has largely dealt with these issues, but it is fair to say that dissolution remains more difficult than it should be due to a mismatch between the legal, income tax and GST consequences that arise on dissolution.
During the webinar Tony will discuss amongst other things the following issues:
The webinar assumes a reasonable level of familiarity with farm accounting and taxation issues and will be practically focused.
Attendees will remain up-to-date on taxation and accounting issues affecting the primary sector
10 April 2018
Accountants and other professionals advising the primary sector
Tony Marshall, Partner – Taxation Consulting & Agribusiness, Crowe Horwath
1.25 CPD Hours