Tax Solutions

Tax Solutions is a series of videos giving you practical solutions and tips for issues that commonly arise in tax practice - pure tax matters as well as associated planning solutions for business and investment structures, trusts, SMSFs, etc. Please click on the links below for recent issues. You may also like to peruse Tax Solutions by topic category - topics are listed below to the right.

Please note that the information provided in Tax Solutions is of a general nature only and should not be acted upon without specific advice based on the precise facts and circumstances of a particular taxpayer.

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  • How to Fail in Tax Planning

    Tax planning arrangements can fail for a number of reasons. One of those reasons has little to do with technical tax rules. With a real-life example, this episode of Tax Solutions illustrates how tax planning can go wrong because of a fatal legal flaw in the underlying transactions or circumstances on which the tax plan is based. With the result that the practitioner involved is highly exposed. 


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    06 Jun 2016

    Topic: CGT/Income tax/Business and investment structures/Trusts

  • "Good as Gold" - Active Assets Indefinitely

    The small business CGT concessions provide very substantial benefits in situations where they apply. And given the policy intent to direct the concessions to business assets, one of the central conditions that must normally be satisfied is the ‘active asset test’.

    This episode of Tax Solutions emphasises a class of CGT assets that achieve a special status for the purposes of the small business CGT concessions. Those assets continue as active assets indefinitely – retaining that status even long after they have ceased being used in any business controlled by the owners!


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    18 Apr 2016

    Topic: CGT/Business and investment structures

  • Problems with wide beneficiary classes in discretionary trusts

    Widely drafted beneficiary classes in discretionary trusts can create headaches in dealing with various State taxes. A recent example is Victoria’s new 3% additional duty on foreign buyers of residential property – where a trustee is the buyer and a family beneficiary lives overseas. A starker example that applies in all States and Territories is payroll tax grouping of businesses controlled by family relatives, where at least one of the businesses is operated by a discretionary trust.

    Having extraordinarily wide beneficiary classes is an outdated practice that creates problems, rather than serving any useful purpose. There is really no point in including a whole range of relatives who are never intended to benefit. A narrow class of beneficiaries is required, with a simple and practical mechanism to add others to whom it is desired to distribute.


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    17 Feb 2016

    Topic: Trusts/Business and investment structures/State Taxes

  • Will Your Clients Really Benefit From CGT Concessions If Their Business Is Owned By a Company?

    Frustrations with ATO views about UPEs of corporate beneficiaries have led to companies more frequently being used to acquire and operate small and medium sized businesses. But the problem is not discretionary trusts owning businesses, it is Division 7A. And there will usually be ways to deal with Division 7A anyway.

    Some advisers believe that a business owner can still access the small business CGT concessions on a future business sale, by selling shares in the company that owns the business. But how realistic is it to hope that that is the way things will turn out. This edition of Tax Solutions emphasises 2 reasons why clients with a business owned by a company may not actually benefit from the CGT concessions.


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    07 Dec 2015

    Topic: Business & investment structures/CGT/Trusts

  • Restructuring to Capture Small Business CGT Concessions

    One of the best things you will ever do for some of your small business clients is to deliberately trigger a CGT event and capture the small business CGT concessions. In the right client circumstances, this strategy can produce several very substantial benefits. That will particularly be so if 100% CGT exemptions can be achieved without duty applying to the transaction.

    A restructure for this purpose should always be kept in mind, particularly for clients who may grow to the point where they can no longer satisfy either the $2M turnover test or $6M net asset value test. But it warrants greater consideration at the moment, given the apparent increased political risk of changes to CGT concessions.


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    03 Nov 2015

    Topic: CGT/Estate Planning/Income Tax