In a feature article published in the AFR, tax partner Jonathan Ortner says that the ATO is particularly focused on succession planning within family businesses at the moment in a bid to ensure that as assets are passed on, they are properly valued, accounted for, documented and assessed for tax.
Quoted alongside a range of other senior tax and wealth advisers, Jonathan says that succession planning can be as simple as someone passing away, and the assets forming part of their estate then passing to the beneficiaries under the will. Alternatively, it can be as complex as “having to restructure a complex family business and group to allocate who has control over what entities and what assets are being sold”.
While the ATO is primarily targeting the top end of town, there are implications for family businesses of all sizes and planning for any succession-related restructuring should take place well in advance of tax time, so that any tax issues can be resolved.
