Description

The temptation is often to think that related parties (usually a family group of some kind) can transact with each other without taxation considerations.

There are a range of tax considerations that need to be worked through when related parties transact.

These can be wide reaching and may not be purely because of the relationship. The tax rules that apply to these transactions also change and need to be considered. For example:

•  If there are transactions involving a company and a shareholder, or an associated party to the shareholder, special taxation considerations arise.
• When a company sells a business but retains ownership of the building, there are specific taxation implications to consider on the value of the sale.
• If a child is an employee of a company and the parents wish to transfer shares as part of succession planning, taxation considerations arise.
• Tainted capital gains cannot be distributed tax free on wind up of a company, but recent rules might assist with previously affected entities.
• When your uncle wants to forgive a loan to you for your business, does it give rise to debt forgiveness income?
• When beneficiaries use Trust property, there are income tax and GST taxation considerations because of the relationship.
• When looking to restructure the ownership of real estate there are tax rules that can taint the new owner of the land and they could be limited with GST claim they can make on the property.

This webinar will work through a number of the common examples of taxation impacting on related party transactions ranging from the most common scenarios to situations that we have seen recently.

ORIGINAL BROADCAST DATE

16 September 2020

LEARNING OUTCOMES

By attending this course, you will get a better understanding of the issues that clients will face when dealing parties associated/related to them. These often arise in the case of succession, asset protection, restructures, or just using assets. The course will highlight these issues and the tax rules that apply.

SUITED TO

CA/Lawyer/Advisor – Appropriate for all levels.

PRESENTER

Daniel Gibbons, Partner – Tax Advisory, Findex/Crowe (presenting on behalf of TEO)