Business Restructures

Business restructuring involves making changes to the entities you use to conduct your business. This may be as simple as creating a new entity to operate your business. It can also mean the creation of multiple entities to form a business group.

The key aim is to make improvements to your current circumstances. Improvements may come in the form of better tax outcomes, asset protection, business efficiency, etc.

Business restructuring should not be undertaken without appropriate advice. Tax and Duty may be payable in some circumstances.  These potential costs must be weighed up against benefits achieved by the restructure.  Some of the things that need to be considered are as follows:

  1. How alterations to the current structure can reduce the tax you pay.
  2. Will there be tax payable on the transfer of your business or other assets to another entity or can tax concessions be applied?
  3. Can a restructure be used to better protect both personal and business assets from attack by business creditors?
  4. Is Transfer Duty payable on the transfer of the business or other assets between entities?
  5. Are there other benefits that can be achieved by the restructure? For example, breaking up the business into separate legal divisions may allow for part of the business to be sold in the future.
  6. Are there any negative outcomes that may result from a restructure? For example, the transfer of property may result in an unwelcomed Land Tax bill.

At McCabe Weston Accountants we have the expertise to give you the right advice when it comes to business restructuring.

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