Tax

In the past, if you had good advisors, you could avoid paying tax altogether. Those days have gone. However, good advice can still make the difference between paying the minimum amount of tax, and paying far more than you need to.

Australia has one of the most complicated taxation systems in the world. Virtually every financial transaction involves tax, whether income tax, capital gains tax or GST. This makes having an effective tax lawyer all the more important.

Different income tax rates and rules apply to companies, trusts and individuals, and they are also taxed differently for capital gains tax. There are also many special sets of rules, such as the rules for taxing capital gains on residential property, and Small Business Relief, where assets of small businesses can be sold with little or no CGT. If you add GST to the picture, it becomes even more complex.

The important starting point is to structure businesses and the ownership of substantial assets so as to minimise future tax. For example, structuring a business to take advantage of small business tax relief can save a huge tax bill when the business is eventually sold.

Some lawyers just say, “Leave it to your accountant”. It is true that accountants play a pivotal role in your tax planning. However, the ideal solution is to have lawyers who understand the tax system, and can work with your accountant to ensure you pay no more than you need to.

Our commercial team is led by Tim Somerville, a Law Society Accredited Specialist in Business Law.  We provide the best advice to give you maximum protection from paying excessive tax.

For advice, please contact Tim Somerville on (02) 9923 2321 or tsomerville@somervillelegal.com.au