Sydney, New South Wales Aug 14, 2020 (Issuewire.com) - Alvin Legal recently advised a Queensland-based corporate on utilising tax relief to consolidate two stand-alone entities into a corporate group with a head company and two subsidiaries.
The consolidation involved:
- swapping the shareholders' shares in the two stand-alone entities for shares in the new head company;
- utilising the roll-over relief for business restructures under Division 615 of the Income Tax Assessment Act 1997 (Cth), to ensure that the consolidation did not trigger any adverse tax consequences for the shareholders; and
- forming a tax consolidated group, so that assets could be freely moved between group companies without triggering adverse tax consequences.
The consolidation was an important step in the growth for the group, as the new corporate structure will simplify the entry and exit of investors and put the group in a floatable condition for a future ASX listing.
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Alvin Legal is a small corporate law firm focusing on private mergers and acquisitions, corporate structuring and trademarks.
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