2. WHAT DOES
ENPRIS DO?
TAXATION
ENPRIS Pty Limited provides tax agent services in the following areas in the
context of the application and administration of Australian taxation law:
• Valuation of businesses, securities, financial products, derivatives,
intellectual property and intangible assets
• Taxation of financial products and arrangements
• Taxation compliance
FINANCE
• Business Valuations
• Intellectual Property / Intangible Asset Valuations
• Financial Product Derivatives Pricing
• MA, Capital Raisings and Capital Management
STRATEGY
• Commercialisation
• Corporate Development
• Business Strategic Planning
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3. Valuations for Taxation Purposes
• Valuation of businesses, securities, financial products, derivatives, intellectual property and
intangible assets
• Advice in relation to:
– ATO’s Valuation practices and processes
– ATO’s Interpretative Advice (IA) function covering products such
as class rulings, private rulings and market valuation rulings
– ATO’s active compliance products and functions including client risk reviews, consolidation
reviews, specific issue audits and large business audits
– Transfer pricing, including the pricing of intragroup loans and guarantees, and the
valuation of intellectual property and intangible assets
Taxation of Financial Products Arrangements
• Valuation, pricing and characterisation of financial products, derivatives, structured products
and financial arrangements
• Compliance assistance in relation to the application of Division 230 of the ITAA 1997
• Interpretation and technical application of Division 230 of the ITAA 1997
• Application and interpretation of international accounting standards and
practices to taxation law
Taxation Compliance
• Communication of the commercial and business rationale for structures and
transactions with the ATO, through the ATO’s cooperative compliance model
• Assistance in the preparation of responses to the ATO relating to informal
notices, formal notices, compliance questionnaires and position papers
• Assistance in addressing Part IVA counterfactual arguments presented by the ATO
• Advice on the ATO’s compliance approaches and risk management strategies
ENPRIS – TAXATION SERVICES
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4. CONSOLIDATIONS
CAPITAL GAINS
AND LOSSES
COMPANY AND
BUSINESS RESTRUCTURES
TRANSFER PRICING
MERGERS
ACQUISITIONS
CAPITAL MANAGEMENT
SCHEMES
OFF-MARKET
BUYBACKS
THIN CAPITALISATION
SMALL BUSINESS
CONCESSIONS
IMPUTATION
EMPLOYEE
SHARE SCHEMES
SUPERANNUATION
FINANCIAL PRODUCTS,
DERIVATIVES FINANCIAL
ARRANGEMENTS
STRUCTURED PRODUCTS
ENPRIS can assist taxpayers and their advisers
in meeting the ATO’s valuation requirements
as reflected in the ATO’s Market valuation for
tax purposes guide.
ENPRIS authored the ATO’s market valuation
guidelines on business valuations; covering
the valuation of businesses, securities,
financial products, derivatives, intellectual
property and intangible assets.
Assistance is provided across all areas of
taxation law requiring valuations.
WHEN DO YOU NEED A
FOR TAX?
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5. ADVISE ON VALUATION REQUIREMENTS
QA EXISTING TAX VALUATIONS
PROVIDE VALUATIONS
NEGOTIATE WITH THE ATO
OBTAIN ADVICE AND SIGNOFF FROM
THE ATO ON VALUATIONS
HOW ENPRIS CAN HELP –
VALUATION ADVICE
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6. HOW
CAN HELP – ATO PROCESS
Compliance
• Pre-lodgement compliance reviews (PCR)
• Reportable tax positions (RTP)
• Risk reviews
• Specific issue audits
• Large business audits
• Annual Compliance Arrangements (ACA)
• Advanced Pricing Agreements (APA)
Interpretative Active
• Private rulings
• Market valuation rulings
• Commissioner’s discretions
New Law
• e.g. Transfer pricing, tax consolidation
Specific and General
Anti-Avoidance Provisions
• Part IVA of the ITAA 1936
• e.g. 177EA of the ITAA 1936
Objections / Settlements
• e.g. Consolidations
• e.g. Identification, treatment and valuation of economic assets
Tax Policy
• e.g. Submissions to ATO or Treasury regarding valuation issues
relating to existing or new law
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7. WHEN DO YOU NEED
VALUATION ADVICE? –
EXAMPLES
Example 1: Off-Market Share Buybacks
Company A has excess franking credits that it wishes to pass to its shareholders. Company A
proposes to enter into an off-market buyback with its shareholders. Company A is an unlisted
company and is required to ascertain the market value of a share under Division 16K of the Income
Tax Assessment Act (ITAA) 1936. Company A decides to seek a private ruling from the ATO.
Company A must consider a number of issues relating to market value:
a) Whether to seek a market valuation ruling
b) How to calculate the market value of the share for the purpose of the buyback
c) Whether a ruling can be sought on a prospective market valuation
d) Recent market valuation approaches accepted by the ATO
Example 2: Thin Capitalisation
Company B needs to recognise and value its intangible assets for the purposes of the application of
Subdivision 820-G of the Income Tax Assessment Act 1997.
Company B must consider a number of valuation issues:
a) Application of sections 820-683 and 820-684 of the ITAA 1997
b) Recognition of internally generated intangibles under s820-683
c) Valuation of intangible assets under s820-684
d) Valuation guidance provided by the ATO
Example 3: Consolidation / CGT
Company C has purchased Company D, which joins Company C’s tax consolidated group. In order
to establish the tax cost base of Company D’s assets, a market valuation of the assets is required.
Company C must consider a number of issues relating to market value:
a) The character of the assets on joining the tax consolidated group
b) The treatment of the assets under the tax consolidation legislation
c) The valuation of the assets on entry into the group
d) Market valuation guidance provided by the ATO
Example 4: Small Business Concessions
Company G’s owner wishes to access the small business CGT concessions available under
Division 152 of the ITAA 1997. In order to access these concessions, Company G’s owner
needs to satisfy the maximum net asset value threshold test of $6 million.
The Owner must consider a number of issues relating to market value:
a) What assets/liabilities are included for the purpose of the test
b) How to calculate the market value of the net assets
c) Market valuation guidance provided by the ATO
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8. ENGAGING
COMPANY
ENPRIS Pty Limited
Level 25 Aurora Place
88 Phillip Street
Sydney NSW 2000
Australia
ABN 89 099 880 547
MAIL
ENPRIS Pty Limited
PO Box 20981
World Square
Sydney NSW 2002
Australia
CONTACT
Mr Laine Simpson
Principal and Director
Mobile: 0412 304 802
International: +61 412 304 802
Email: laine@enpris.com
www.enpris.com
Version: Aug14
