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.