Paul Carrazzo from
Carrazzo Consulting has produced a document explaining the new rules which provide
an easier way for businesses to change their structure to become more tax
effective.
"We often takeover clients, not just those in the
horse industry either, where little thought was put into how their business
affairs were originally structured for tax."
"The frustrating part was that trying to change the business to a more tax
efficient or commercial tax entity (e.g. an entity offering greater asset
protection) often carried severe "up-front" income tax consequences. In terms
of making structure changes after set-up, the 'horse had bolted', so to speak.
"The Government have finally taken notice of this dilemma and in the 2015/2016
Budget announced new "Small Business Restructure" rules with these laws having
commenced on 1 April 2016.
"These are very complex rules, regrettably, but below I will outline the basic
operation of these rules and maybe you will conclude that it's now well worth
the effort to convert your business from its existing entity to, say, a trust,
company, sole trader or partnership."
Click here to read the document.