Do you have several different taxation entities such as companies trusts and family partnerships? The Australian Taxation Office (ATO) is investigating these relationships more and more. ATO rulings indicate that informal arrangements will not be accepted.
If your entities are reviewed and the ATO does not consider the arrangements appropriate, any taxation advantages can be lost and interest and penalties can be imposed.
Ensuring that all related party transactions are drafted as though you are entering those relationships with strangers (arm’s length transactions in the legal lingo) reflecting normal commercial terms and rates will reduce the risk of financial penalties.
We work with our clients to put together arrangements that meet their financial outcomes but provide legal protection for the unforeseeable. We have flexible solutions for all budgets and a vast understanding of business structures helps to ensure contingencies are identified and considered.
Don’t leave your business to chance – contact Wright Clarke Solicitors to ensure your business is protected.