Miscellaneous 2007

Removing funds from companies

Source: Western Australia

Published Date: 10 Aug 2007

 

Removing funds from a controlled company - and not suffering a hefty tax penalty in the process is no easy matter. At least three different tax dangers have to be negotiated – avoiding additional tax on the Company, avoiding further tax on the shareholder and avoiding a penalty debit to the company's franking account. This presentation looks at a few of the possibilities for a satisfactory outcome, and some of the dissonant dangers that lurk in this territory:

  • accessing retained earnings
  • avoiding the wash-out of concessions
  • dividends and dividend access shares
  • stripping and streaming rules
  • capital reductions - is this feasible for SMEs?
  • loans out
  • liquidation of companies
  • redundancy payments and other benefits
  • FBT issues.

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Individual Session

Removing funds from a company - some of the hidden dangers

Author(s): Graeme S Cooper FTI

Details

  • Published By: Graeme S Cooper FTI
  • Published On:10 Aug 2007
  • Took place at:Abbey Beach Resort, Busselton

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