The document discusses Australia's new CGT withholding rules for foreign residents. It provides an overview of the rules, key terms, and obligations around withholding amounts for the acquisition of real estate, indirect Australian real property interests, and options from foreign residents. It also discusses clearance certificates, declarations, and case studies demonstrating how the rules apply in various scenarios, including relationship breakdowns. Exemptions and exceptions to the withholding obligations are also outlined.
Buying and investing in the london property marketBolt Burdon
This document summarizes key topics related to buying and investing in the London property market. It discusses things to consider when purchasing an investment property such as location, rental demand, and buy-to-let mortgages. It also covers lease extensions, tenancy agreements, taxation implications, and using marriage agreements and wills for estate planning purposes. The presentation is intended to provide an overview of important legal and financial factors rather than specific advice.
Sponsored by our partners at Taxwise and Ashfords, this event consists of a variety of topics that our clients are telling us are giving them the biggest challenges.
This document discusses trusts, including what a trust is, benefits and disadvantages of trusts, taxation of trusts, and examples. Some key points covered include:
- A trust is a contract where a donor transfers assets to trustees to hold for the benefit of beneficiaries.
- Benefits of trusts include preservation of wealth across generations, protection of people and causes, and reduction of taxes like capital gains tax, estate duty tax, and donations tax.
- Disadvantages include the donor losing control over assets and costs of establishing and maintaining the trust.
- Taxation includes income tax and capital gains tax in the trust at rates of 40% and 20%, and distributions to beneficiaries may be taxed depending on rules.
-
The document discusses estate planning tools like trusts and wills. It provides information on the legal nature and purpose of trusts, including benefits like protecting assets and reducing death duties. It describes the differences between inter vivos and testamentary trusts. The roles and duties of trustees are outlined. Some common problem clauses in trust deeds are highlighted with examples. Taxation of trusts, including income tax and capital gains tax, is covered. Requirements for a valid will are also summarized.
On 12th November 2014 Gordon Stuart presented at the Kruger Lowveld Chamber of Business and Tourism networking breakfast. The topic under discussion was “Trusts and Wills – ‘A legacy or Liability’ - Pitfalls in Estate planning.
"Employee Share Schemes" - The Chartered Institute of TaxationBernersMarketing
This document summarizes changes to UK tax law regarding employee share schemes in 2012-2013. Key points include:
- EMIs were made more generous, with the period to exercise options after leaving a job increased to 90 days.
- Shares from exercising EMI options within 10 years now qualify for Entrepreneurs' Relief from capital gains tax.
- "Employee shareholders" can receive shares with no tax if they give up certain employment rights, with up to £50,000 exempt from capital gains tax.
- Loans from close companies to employee benefit trusts now face a 25% tax charge if loan benefits a shareholder.
- Private companies have more flexibility to hold shares bought back off-market in
The document discusses the benefits and disadvantages of trusts, including ensuring smooth transfer of assets between generations, protecting assets from creditors, reducing death duties and taxes, and preserving wealth. It notes trusts require donors to relinquish ownership and control to trustees. Costs include bank fees of 1-2% of capital. Inter vivos trusts allow more flexibility than testamentary trusts. Trustees have responsibilities like insuring assets and complying with the trust deed and law. Problem clauses can undermine the validity and intended tax benefits of a trust. Taxes on trusts include income tax of 40% in the trust and capital gains tax of 20% in the trust. Income and gains can be distributed to beneficiaries taxed at their individual rates. The document
Buying and investing in the london property marketBolt Burdon
This document summarizes key topics related to buying and investing in the London property market. It discusses things to consider when purchasing an investment property such as location, rental demand, and buy-to-let mortgages. It also covers lease extensions, tenancy agreements, taxation implications, and using marriage agreements and wills for estate planning purposes. The presentation is intended to provide an overview of important legal and financial factors rather than specific advice.
Sponsored by our partners at Taxwise and Ashfords, this event consists of a variety of topics that our clients are telling us are giving them the biggest challenges.
This document discusses trusts, including what a trust is, benefits and disadvantages of trusts, taxation of trusts, and examples. Some key points covered include:
- A trust is a contract where a donor transfers assets to trustees to hold for the benefit of beneficiaries.
- Benefits of trusts include preservation of wealth across generations, protection of people and causes, and reduction of taxes like capital gains tax, estate duty tax, and donations tax.
- Disadvantages include the donor losing control over assets and costs of establishing and maintaining the trust.
- Taxation includes income tax and capital gains tax in the trust at rates of 40% and 20%, and distributions to beneficiaries may be taxed depending on rules.
-
The document discusses estate planning tools like trusts and wills. It provides information on the legal nature and purpose of trusts, including benefits like protecting assets and reducing death duties. It describes the differences between inter vivos and testamentary trusts. The roles and duties of trustees are outlined. Some common problem clauses in trust deeds are highlighted with examples. Taxation of trusts, including income tax and capital gains tax, is covered. Requirements for a valid will are also summarized.
On 12th November 2014 Gordon Stuart presented at the Kruger Lowveld Chamber of Business and Tourism networking breakfast. The topic under discussion was “Trusts and Wills – ‘A legacy or Liability’ - Pitfalls in Estate planning.
"Employee Share Schemes" - The Chartered Institute of TaxationBernersMarketing
This document summarizes changes to UK tax law regarding employee share schemes in 2012-2013. Key points include:
- EMIs were made more generous, with the period to exercise options after leaving a job increased to 90 days.
- Shares from exercising EMI options within 10 years now qualify for Entrepreneurs' Relief from capital gains tax.
- "Employee shareholders" can receive shares with no tax if they give up certain employment rights, with up to £50,000 exempt from capital gains tax.
- Loans from close companies to employee benefit trusts now face a 25% tax charge if loan benefits a shareholder.
- Private companies have more flexibility to hold shares bought back off-market in
The document discusses the benefits and disadvantages of trusts, including ensuring smooth transfer of assets between generations, protecting assets from creditors, reducing death duties and taxes, and preserving wealth. It notes trusts require donors to relinquish ownership and control to trustees. Costs include bank fees of 1-2% of capital. Inter vivos trusts allow more flexibility than testamentary trusts. Trustees have responsibilities like insuring assets and complying with the trust deed and law. Problem clauses can undermine the validity and intended tax benefits of a trust. Taxes on trusts include income tax of 40% in the trust and capital gains tax of 20% in the trust. Income and gains can be distributed to beneficiaries taxed at their individual rates. The document
A professionally drafted will is important to avoid unintended consequences of dying intestate like assets not benefiting intended people, higher death duties, and capital gains tax. A will should be reviewed every 2 years or when life events like marriage, divorce, or death of a spouse occur. Freedom of testation allows people to leave assets to whoever they want, with exceptions for maintaining minor children. Requirements for a valid will include being signed and dated in front of two witnesses. Dying without a will can significantly increase death duties paid compared to using basic estate planning techniques like leaving assets in a testamentary trust. More advanced planning utilizes exemptions fully and provides offshore asset protection. Separate foreign wills may be needed and usufr
The document summarizes the Dutch tax regime for collective investments. It discusses three main types of structures under Dutch law - fiscally transparent structures, the Fiscal Investment Institution (FII), and the Exempt Investment Institution (EII). Fiscally transparent structures are disregarded for tax purposes, resulting in one layer of tax at the investor level. The FII is a corporate taxpayer but has a 0% tax rate, while the EII is exempt from corporate tax entirely. Both the FII and EII convert all investment income into dividend income at the fund level.
On Friday the 12th February Gordon presented to clients of MRA. The topic under discussion was the possible impact of the Davis Tax Committee on estate planning as we currently know it. The presentation also looked at updates made in a Webinar held between the DTC and the South African Institute of Tax Practioners.
- A Will should be reviewed every 2 years or when major life events occur like marriage, divorce, birth of children. It ensures assets go to intended beneficiaries and avoids unintended consequences like higher taxes.
- South African law provides broad freedom of testation but children must be maintained and spouses can claim maintenance.
- To be valid, a Will must be signed and dated in front of two witnesses over age 14 who do not benefit from the Will.
- Trusts are an agreement, not a legal entity, and can help reduce death duties and preserve wealth across generations while protecting assets from creditors. Inter vivos trusts allow more control than testamentary trusts but come with costs and tax implications.
The document provides information about online training for landlords in Wales to become licensed under the Rent Smart Wales scheme. It outlines that the training is divided into 5 sections that cover topics relevant to managing rental properties legally. Learners can progress through modules at their own pace and there is a certificate awarded upon passing an assessment at the end of the course.
This document provides an overview of trusts in South Africa. It discusses the legal nature of trusts and differences between inter vivos and testamentary trusts. It also covers ways to transfer assets into a trust, benefits of trusts like tax savings and asset protection, and disadvantages like loss of control. Additionally, it outlines the roles and duties of trustees, requirements for an independent trustee, types of beneficiaries, and taxation implications of trusts. The conclusion emphasizes ensuring an independent trustee, a compliant trust deed reviewed regularly, complying with statutory requirements, and coordinating a will with any existing trust.
The document discusses the legal nature and benefits of trusts. It states that a trust is not a legal entity but that trustees are considered separate legal entities. It lists benefits of trusts such as reducing estate duties and protecting assets from creditors. It also discusses disadvantages like loss of control over assets. The document then covers topics like the differences between inter vivos and testamentary trusts, the role of independent trustees, trustees' duties, and common problematic clauses in trust deeds. It provides tax implications of trusts and strategies for transferring assets to trusts.
This document summarizes proposals from the Davis Tax Committee regarding changes to estate taxes, trusts, foreign trusts, and contributions to retirement funds. Some key points proposed include removing the ability of trusts to shift taxable income, taxing trusts as separate taxpayers at 41%, limiting inter-spouse donations and exemptions, and including disallowed retirement fund contributions in estate duty computations. The document provides comparisons of investing as an individual versus through a trust, noting trusts may still provide tax benefits. It clarifies the proposals are not yet law and changes should not be made until finalized.
This document provides an overview of offshore estate planning options in South Africa. It discusses acquiring assets directly, through life wrappers or roll-up funds, and through offshore trusts. Acquiring assets directly has no additional costs but any income/gains will be taxed in SA. Life wrappers and roll-up funds defer tax until disposal but the investment will still be subject to estate duty. Offshore trusts provide estate planning benefits like removing assets from an estate and loan accounts can reduce duty, but there are also tax implications to consider under South African law. The document notes recent recommendations from the Davis Tax Committee on taxing foreign trusts.
This presentation covered the following:
-ATO audits and reviews
-Tips on dealing with the ATO
-The true power of the ATO
-What comes after the notice of assessment, from objecting to the tax assessment, to debt recovery proceedings from the ATO
The Colombian financial system is based on specialized banking where each financial activity can only be performed by an entity appointed for that specific activity. The system divides into an intermediated sector of banks, insurers, and related services, and a disintermediated securities market sector bringing together entities without professional intermediation. While cryptocurrencies are not prohibited, there is no comprehensive regulation in Colombia regarding their use, status, or tax treatment. Regulations require meeting restrictions on public funds collection and money laundering prevention.
This document contains 13 exhibits that summarize key provisions related to nonrecognition of gains and losses from property transactions under sections 1031, 1033, and 121 of the Internal Revenue Code. The exhibits cover topics such as like-kind exchanges, involuntary conversions, and the sale of a principal residence. Each exhibit provides an overview of the relevant rules, qualifications, time limitations, and tax treatment for these various property transactions.
The document discusses various legal concepts relating to wills and succession in South African law, including:
- A will can be revoked at any time by the testator. A pactum successorium is an invalid agreement to regulate succession. The only exception is an ante nuptial contract.
- There is freedom of succession in SA law, subject to obligations to maintain minor children, a surviving spouse, and accrual rights in married-in-community property. Statutes also place some limitations.
- Substitution allows a second beneficiary to take the place of an original beneficiary if the original cannot inherit to avoid a bequest lapsing. There are different types of direct and fideicommiss
This chapter discusses secured transactions under Article 9 of the Uniform Commercial Code. It defines secured and unsecured debt, outlines the scope of Article 9, and describes how a security interest is created and perfected. Key concepts covered include floating liens, priority issues between secured parties and other creditors, the rights and duties of secured parties and debtors upon default, and remedies available to debtors. The chapter aims to help readers understand secured transactions and how to properly create, perfect, and enforce security interests.
Our second breakfast club of the year covered the following:
• a brief refresher on the basics of state aid
• practical tips for addressing or eliminating state aid in projects:
o identifying aid
o using De Minimis correctly
o market economy operator principle
o general block exemption regulation.
https://www.brownejacobson.com/sectors-and-services/sectors/public-sector
The document summarizes two recent tax court cases related to income recognition for residential real estate developers. The first case, Shea Homes, allowed developers to defer income recognition for an entire development project until all common infrastructure was complete, not just individual homes. This provides an attractive tax deferral opportunity. However, the ruling was based on specific contract terms and may not apply broadly. The second case, Pool, provided guidelines for determining if real estate sales produce capital gains or ordinary income. It emphasized the need for developers to document acquisition intent and avoid frequent/substantial sales to argue for capital gains treatment.
Mercer & Hole Property Plus - January 2015TIAG_Alliance
Published by Mercer & Hole - TIAG Member in London, England
These articles give an overview of some of the property issues that we are typically dealing with. These range from commercial property investment, to families buying property for their children to occupy, a second home investment, maybe a buy to let or a wealthy non UK domiciled individual acquiring a home or investment in the UK.
02: Buying property for children
03: Capital allowances in commercial property
04: Commercial property investment
05: VAT on student accommodation: 1 April 2015 changes
06: Non UK domiciliaries owning UK property
07: UK residential property – buy to let 08: Residential service charge accounts
The document discusses several types of tax credits available for historic rehabilitation projects, including the Federal Historic Rehabilitation Tax Credit, New Markets Tax Credit, and Ohio Historic Rehabilitation Tax Credit. It provides details on eligibility requirements, the application and certification process, qualified rehabilitation expenditures, recapture provisions, and how the credits are typically structured. The Federal Historic credit is 20% or 10% of qualified costs depending on the building. The New Markets Tax Credit allows investors to receive a tax credit for investments in low-income communities. The Ohio credit is 25% of costs but awarded competitively based on scoring criteria like job creation and community impact.
This document summarizes the key tax implications landlords need to be aware of, including income tax, capital gains tax, and inheritance tax. It outlines the rental income landlords must declare and expenses they can deduct. Profit from rental properties is taxed as income. When selling a rental property, capital gains tax applies to any increase in property value over time. Landlords must also consider how rental properties factor into inheritance tax. Proper record keeping of rental income, expenses, purchases and improvements is important for tax reporting.
The document discusses key aspects of Australia's Personal Property Securities Act, which governs security interests in personal property. It outlines how the Act establishes a unified system for the creation, priority and enforcement of security interests through registration on a public register. It also discusses transitional arrangements for pre-existing interests, the definition of a security interest, priorities for purchase money security interests, and interactions with other areas of law like bankruptcy and fixtures.
NEWBIE LITIGATOR SCHOOL - 101 Part 3 2022 - Enforcement: Post-Judgment Procee...Financial Poise
Obtaining a final and enforceable judgment is often just the first phase of the civil litigation process; without effective enforcement and collection, a judgment is merely a piece of paper (or electronic docket entry). This webinar provides an overview of the technical, procedural and strategic considerations necessary to monetize judgments and make litigation worthwhile.
Part of the webinar series: NEWBIE LITIGATOR SCHOOL - 101 Part 3 2022
See more at https://www.financialpoise.com/webinars/
A professionally drafted will is important to avoid unintended consequences of dying intestate like assets not benefiting intended people, higher death duties, and capital gains tax. A will should be reviewed every 2 years or when life events like marriage, divorce, or death of a spouse occur. Freedom of testation allows people to leave assets to whoever they want, with exceptions for maintaining minor children. Requirements for a valid will include being signed and dated in front of two witnesses. Dying without a will can significantly increase death duties paid compared to using basic estate planning techniques like leaving assets in a testamentary trust. More advanced planning utilizes exemptions fully and provides offshore asset protection. Separate foreign wills may be needed and usufr
The document summarizes the Dutch tax regime for collective investments. It discusses three main types of structures under Dutch law - fiscally transparent structures, the Fiscal Investment Institution (FII), and the Exempt Investment Institution (EII). Fiscally transparent structures are disregarded for tax purposes, resulting in one layer of tax at the investor level. The FII is a corporate taxpayer but has a 0% tax rate, while the EII is exempt from corporate tax entirely. Both the FII and EII convert all investment income into dividend income at the fund level.
On Friday the 12th February Gordon presented to clients of MRA. The topic under discussion was the possible impact of the Davis Tax Committee on estate planning as we currently know it. The presentation also looked at updates made in a Webinar held between the DTC and the South African Institute of Tax Practioners.
- A Will should be reviewed every 2 years or when major life events occur like marriage, divorce, birth of children. It ensures assets go to intended beneficiaries and avoids unintended consequences like higher taxes.
- South African law provides broad freedom of testation but children must be maintained and spouses can claim maintenance.
- To be valid, a Will must be signed and dated in front of two witnesses over age 14 who do not benefit from the Will.
- Trusts are an agreement, not a legal entity, and can help reduce death duties and preserve wealth across generations while protecting assets from creditors. Inter vivos trusts allow more control than testamentary trusts but come with costs and tax implications.
The document provides information about online training for landlords in Wales to become licensed under the Rent Smart Wales scheme. It outlines that the training is divided into 5 sections that cover topics relevant to managing rental properties legally. Learners can progress through modules at their own pace and there is a certificate awarded upon passing an assessment at the end of the course.
This document provides an overview of trusts in South Africa. It discusses the legal nature of trusts and differences between inter vivos and testamentary trusts. It also covers ways to transfer assets into a trust, benefits of trusts like tax savings and asset protection, and disadvantages like loss of control. Additionally, it outlines the roles and duties of trustees, requirements for an independent trustee, types of beneficiaries, and taxation implications of trusts. The conclusion emphasizes ensuring an independent trustee, a compliant trust deed reviewed regularly, complying with statutory requirements, and coordinating a will with any existing trust.
The document discusses the legal nature and benefits of trusts. It states that a trust is not a legal entity but that trustees are considered separate legal entities. It lists benefits of trusts such as reducing estate duties and protecting assets from creditors. It also discusses disadvantages like loss of control over assets. The document then covers topics like the differences between inter vivos and testamentary trusts, the role of independent trustees, trustees' duties, and common problematic clauses in trust deeds. It provides tax implications of trusts and strategies for transferring assets to trusts.
This document summarizes proposals from the Davis Tax Committee regarding changes to estate taxes, trusts, foreign trusts, and contributions to retirement funds. Some key points proposed include removing the ability of trusts to shift taxable income, taxing trusts as separate taxpayers at 41%, limiting inter-spouse donations and exemptions, and including disallowed retirement fund contributions in estate duty computations. The document provides comparisons of investing as an individual versus through a trust, noting trusts may still provide tax benefits. It clarifies the proposals are not yet law and changes should not be made until finalized.
This document provides an overview of offshore estate planning options in South Africa. It discusses acquiring assets directly, through life wrappers or roll-up funds, and through offshore trusts. Acquiring assets directly has no additional costs but any income/gains will be taxed in SA. Life wrappers and roll-up funds defer tax until disposal but the investment will still be subject to estate duty. Offshore trusts provide estate planning benefits like removing assets from an estate and loan accounts can reduce duty, but there are also tax implications to consider under South African law. The document notes recent recommendations from the Davis Tax Committee on taxing foreign trusts.
This presentation covered the following:
-ATO audits and reviews
-Tips on dealing with the ATO
-The true power of the ATO
-What comes after the notice of assessment, from objecting to the tax assessment, to debt recovery proceedings from the ATO
The Colombian financial system is based on specialized banking where each financial activity can only be performed by an entity appointed for that specific activity. The system divides into an intermediated sector of banks, insurers, and related services, and a disintermediated securities market sector bringing together entities without professional intermediation. While cryptocurrencies are not prohibited, there is no comprehensive regulation in Colombia regarding their use, status, or tax treatment. Regulations require meeting restrictions on public funds collection and money laundering prevention.
This document contains 13 exhibits that summarize key provisions related to nonrecognition of gains and losses from property transactions under sections 1031, 1033, and 121 of the Internal Revenue Code. The exhibits cover topics such as like-kind exchanges, involuntary conversions, and the sale of a principal residence. Each exhibit provides an overview of the relevant rules, qualifications, time limitations, and tax treatment for these various property transactions.
The document discusses various legal concepts relating to wills and succession in South African law, including:
- A will can be revoked at any time by the testator. A pactum successorium is an invalid agreement to regulate succession. The only exception is an ante nuptial contract.
- There is freedom of succession in SA law, subject to obligations to maintain minor children, a surviving spouse, and accrual rights in married-in-community property. Statutes also place some limitations.
- Substitution allows a second beneficiary to take the place of an original beneficiary if the original cannot inherit to avoid a bequest lapsing. There are different types of direct and fideicommiss
This chapter discusses secured transactions under Article 9 of the Uniform Commercial Code. It defines secured and unsecured debt, outlines the scope of Article 9, and describes how a security interest is created and perfected. Key concepts covered include floating liens, priority issues between secured parties and other creditors, the rights and duties of secured parties and debtors upon default, and remedies available to debtors. The chapter aims to help readers understand secured transactions and how to properly create, perfect, and enforce security interests.
Our second breakfast club of the year covered the following:
• a brief refresher on the basics of state aid
• practical tips for addressing or eliminating state aid in projects:
o identifying aid
o using De Minimis correctly
o market economy operator principle
o general block exemption regulation.
https://www.brownejacobson.com/sectors-and-services/sectors/public-sector
The document summarizes two recent tax court cases related to income recognition for residential real estate developers. The first case, Shea Homes, allowed developers to defer income recognition for an entire development project until all common infrastructure was complete, not just individual homes. This provides an attractive tax deferral opportunity. However, the ruling was based on specific contract terms and may not apply broadly. The second case, Pool, provided guidelines for determining if real estate sales produce capital gains or ordinary income. It emphasized the need for developers to document acquisition intent and avoid frequent/substantial sales to argue for capital gains treatment.
Mercer & Hole Property Plus - January 2015TIAG_Alliance
Published by Mercer & Hole - TIAG Member in London, England
These articles give an overview of some of the property issues that we are typically dealing with. These range from commercial property investment, to families buying property for their children to occupy, a second home investment, maybe a buy to let or a wealthy non UK domiciled individual acquiring a home or investment in the UK.
02: Buying property for children
03: Capital allowances in commercial property
04: Commercial property investment
05: VAT on student accommodation: 1 April 2015 changes
06: Non UK domiciliaries owning UK property
07: UK residential property – buy to let 08: Residential service charge accounts
The document discusses several types of tax credits available for historic rehabilitation projects, including the Federal Historic Rehabilitation Tax Credit, New Markets Tax Credit, and Ohio Historic Rehabilitation Tax Credit. It provides details on eligibility requirements, the application and certification process, qualified rehabilitation expenditures, recapture provisions, and how the credits are typically structured. The Federal Historic credit is 20% or 10% of qualified costs depending on the building. The New Markets Tax Credit allows investors to receive a tax credit for investments in low-income communities. The Ohio credit is 25% of costs but awarded competitively based on scoring criteria like job creation and community impact.
This document summarizes the key tax implications landlords need to be aware of, including income tax, capital gains tax, and inheritance tax. It outlines the rental income landlords must declare and expenses they can deduct. Profit from rental properties is taxed as income. When selling a rental property, capital gains tax applies to any increase in property value over time. Landlords must also consider how rental properties factor into inheritance tax. Proper record keeping of rental income, expenses, purchases and improvements is important for tax reporting.
The document discusses key aspects of Australia's Personal Property Securities Act, which governs security interests in personal property. It outlines how the Act establishes a unified system for the creation, priority and enforcement of security interests through registration on a public register. It also discusses transitional arrangements for pre-existing interests, the definition of a security interest, priorities for purchase money security interests, and interactions with other areas of law like bankruptcy and fixtures.
NEWBIE LITIGATOR SCHOOL - 101 Part 3 2022 - Enforcement: Post-Judgment Procee...Financial Poise
Obtaining a final and enforceable judgment is often just the first phase of the civil litigation process; without effective enforcement and collection, a judgment is merely a piece of paper (or electronic docket entry). This webinar provides an overview of the technical, procedural and strategic considerations necessary to monetize judgments and make litigation worthwhile.
Part of the webinar series: NEWBIE LITIGATOR SCHOOL - 101 Part 3 2022
See more at https://www.financialpoise.com/webinars/
It’s widely known that foreign companies looking to acquire strong targets are drawn to Canada’s vast resource sector. But there’s also plenty of M&A activity — and opportunity — across many other Canadian industries, such as technology, life sciences, media and communications, manufacturing and retail.
In this one-hour webinar, experts from Gowlings will share their insights on the Canadian M&A legal regime, and offer tips on how to navigate the complexities of the market and successfully acquire a Canadian company. Topics include:
- Building your acquisition model and determining the most appropriate structure for a Canadian company acquisition
- Determining the applicable tax rules and assessing the potential tax advantages
- An overview of competition law and the Investment Canada Act — due diligence, thresholds and the review process
The document provides an outline for a course on advanced IRC Section 1031 exchange concepts. It covers exchange terminology, definitions of like-kind property, delayed and reverse exchanges, boot, identification and exchange periods, restrictions on exchange proceeds, related party rules, and issues around vacation homes and tenant-in-common ownership structures.
The document discusses identifying opportunities for property tax savings through the annual review of assessed property values. It notes that assessed values can be reduced if demonstrated to exceed market value, yielding permanent annual tax savings. Specific opportunities for savings include establishing base year values during ownership changes, annual reviews catching increases over 2%, and appealing discrepancies between assessed and market values.
The document discusses several key laws regulating real estate closings:
1) RESPA requires advance disclosure of settlement costs and prohibits kickbacks.
2) TILA mandates disclosures for loans, including interest rates and costs. It provides a 3-day right of rescission.
3) HOEPA and other laws target protections for subprime borrowers and prohibit predatory practices like loan flipping.
4) Disclosure forms must be properly completed under RESPA and TILA at various stages of the closing process.
The 1031 exchange allows real estate investors to defer capital gains taxes when selling investment or business property and purchasing a new replacement property. Key aspects include exchanging property of like-kind to defer all capital gains taxes, using a qualified intermediary to handle transaction funds and identifying a replacement property within 45 days. Following the guidelines of a 1031 exchange can help investors consolidate, diversify or improve their real estate portfolio in a tax advantageous way.
This document outlines several routine actions that should be taken when creating a new tenancy:
- Agree final terms such as rent, contract length, included items, and move-in date.
- Provide legal documents like the tenancy agreement and 'How to Rent' guide to the tenant in advance of signing.
- Ensure any outstanding rent, deposit and fees are paid and all documents are signed before the tenant moves in.
- Take meter readings and notify utility companies of the new tenants to avoid liability for charges.
Hybrid Instruments in Startup Financing, Convertible notes and SAFEJaakko Lindgren
This document discusses hybrid financing instruments for startups, specifically convertible notes and SAFEs. It provides examples of how convertible notes and SAFEs work, including conversion calculations. It also discusses the Finnish Companies Act requirements for issuing special rights like convertible notes and SAFEs, such as needing a weighty financial reason and defining terms in the articles of association. The document concludes that while hybrid instruments are recommended for startup financing, transaction costs may be high for implementing them in Finland due to regulatory compliance requirements. Standardization is needed to reduce costs.
Planning and development club - November 2017, NottinghamBrowne Jacobson LLP
This session provided an introduction to SPVs, looked at key tax considerations when purchasing property, overage and restrictive convenants, and a planning update.
A 1031 exchange allows real estate investors to sell property and use the proceeds to purchase similar replacement property without paying capital gains taxes, provided certain requirements are met, including identifying and purchasing the replacement property within strict time limits. The exchange process provides tax benefits and opportunities to improve an investor's real estate portfolio by upgrading or diversifying properties. Qualified intermediaries facilitate delayed exchanges to help ensure transactions meet IRS rules for deferred tax treatment.
This document discusses state-level equity crowdfunding laws, which allow companies to raise funds from investors in a particular state to avoid having to comply with federal crowdfunding regulations. Thirteen states now have state equity crowdfunding laws, including Washington, which allow companies to raise up to $1 million from in-state investors annually. The document outlines some of the key provisions and requirements of Washington's state equity crowdfunding law.
1) The document outlines the key components needed for a modern legal framework for secured lending, including creation of a security interest, a priority scheme, registration and registry systems, and enforcement procedures.
2) It recommends taking a functional approach that focuses on the economic purpose of transactions rather than legal forms, and giving parties flexibility to structure agreements.
3) An effective registry system should provide notice-based registration, be unified, centralized, accurate, accessible, and follow best practices for speed, cost-effectiveness and simplicity.
The document provides information about Internal Revenue Code Section 1031 tax deferred exchanges, including:
- Section 1031 allows taxpayers to sell investment property and purchase replacement property without paying capital gains tax, as long as certain rules are followed.
- The relinquished and replacement properties must be held for investment. The proceeds from the sale must be used to purchase qualifying replacement property within 180 days.
- Identification of the replacement property must be made within 45 days of the sale of the relinquished property.
- The sale price and financing of the replacement property must be equal to or greater than the relinquished property to defer all capital gains tax. Consulting a tax professional is advised.
The document provides information about Scottish Letting Day 2019, including the date, sponsors, and schedule of sessions. It also includes two presentations from the event. The first presentation discusses how property taxation has changed in recent years in Scotland and potential future changes. It outlines various taxes like LBTT, ADS, and interest deductions that impact landlords. The second presentation is from Paragon Bank and discusses their portfolio and non-portfolio buy-to-let mortgage options, including for limited companies, HMOs, and short-term finance products. It provides details on underwriting criteria and new products like options for expat landlords and holiday lets.
This document provides an overview and summary of builders' lien laws across various Canadian jurisdictions. It discusses what builders' liens are, why they are filed, who can file them, deadlines for filing, holdback percentages and periods, and steps required to perfect a lien such as commencing a lawsuit. Key details are provided for each province and territory's lien laws, including registration deadlines, holdback amounts, who can file a lien, and steps to enforce a lien.
Paul Taylor from Taylored Credit Management delivered this session as part of a full days introductory session to new Credit & Risk professionals at the end of 2018. The scale of fees changes so please contact us if you want an updated version.
You need to hear the presentation but here are the slides, get in touch for more information or to arrange training for your Credit Control team.
This document provides an agenda and overview of a presentation on corporate tax law topics. It discusses whether the C corporation is becoming a more attractive entity choice compared to pass-through entities like partnerships and S corporations due to changing tax rates. It also covers recent developments related to purchase price allocations for asset acquisitions, the application of transaction cost allocation rules including the "next day rule", and new regulations allowing for section 336(e) elections to treat stock dispositions as deemed asset sales similar to section 338(h)(10) elections.
2. www.cgw.com.au
Agenda
• Issues with collection of CGT from foreign
residents
• Introducing the new provisions
• Application of withholding provisions to real estate
• Application of withholding provisions to options
and indirect real property interests
• Clearance certificates, declarations and variations
• Case study
3. www.cgw.com.au
History of CGT for foreign residents
• Foreign residents are required to pay CGT in Australia on
CGT event that occur in relation to;
• Taxable Australian Real Property
• Indirect Australian real property interests
• Options or rights to acquire the property or interests above
• This does not work - to quote from the EM which
introduced the CGT withholding tax legislation;
• there is an extremely low rate of voluntary compliance from foreign
resident taxpayers and it is highly difficult to enforce by the ATO
4. www.cgw.com.au
Key withholding provision: section 14-200
• You must pay the Commissioner an amount if:
• you become the owner of a CGT asset as a result
of acquiring it from one or more entities under one
or more transactions; and
• the CGT asset is taxable Australian Real Property;
or
• at least one of the transferors is a relevant foreign
resident; and
• the CGT asset is an indirect Australian real
property interest or an option
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Some important terms used in the provision
• You must pay
• there is no requirement to withhold just to pay
• ‘if you acquire’ – defined in section 109 of the
1997 Tax Act
• you ‘acquire’ an asset when you become its owner
• transfer of property as a result of a family court order
• passing of the asset to an executor of an estate or to a
beneficiary of an estate
• other CGT rollovers or CGT small business concessions
• Legal or equitable ownership? – ATO’s current view is that
withholding provisions relate to legal ownership - change of
trustee
6. www.cgw.com.au
Some important terms used in the provision
• ‘one or more transactions’
• transaction
• ‘CGT event’ is not used in the provision
• transaction is not defined in income tax
legislation
• clearance certificates and declarations
• acquiring a CGT asset from one or more
transferors
• two entities acquiring an asset as tenants in
common or joint tenants
7. www.cgw.com.au
Some important terms used in the provision
• CGT asset is Taxable Australian Real Property (TARP)
• Real estate located in Australia
• You must withhold regardless of whether you are acquiring from a
foreign resident
• indirect Australian real property interest or options
• Membership interests (shares or units)
• Passes the “non-portfolio interest test”
• 50% of the market value of assets are attributable to real estate in
Australia
• you must withhold if one of the transferors is a ‘relevant foreign
resident’
• Options to acquire TARP or indirect Australian real property
interests
8. www.cgw.com.au
Withholding an amount
• The withholding legislation effectively transfers the
obligation to collect tax from the ATO to the purchaser
• If no tax is withheld and there should have been – the
purchaser is liable
• 10% of the first element of the cost base of the CGT asset
• Generally this will be the purchase price of the entire
CGT asset that is being transferred
• CGT rollovers – 10% of the cost base that is passed to
the acquirer
9. www.cgw.com.au
Withholding an amount
• Does the legislation give the acquirer the power to
withhold?
An entity is discharged from all liability to pay so much of the total
amount payable to acquire a CGT asset as is equal to any amount
the entity pays to the Commissioner under Subdivision 14-D in
relation to the acquisition.
• Consider whether the agreement, order or
transfer gives the acquirer the right to withhold
10. www.cgw.com.au
Commissioner’s Variation Power
• The Commissioner is able to exercise discretion
to vary the amount payable: section 14-235.
• Variations can be requested by:
• the purchaser of the CGT asset;
• the vendor of the CGT asset; or
• an entity that is owed a debt by the vendor.
• Variations must be applied for as soon as
practicably possible in the sale process. In any
case, well before the settlement date: LCG
2016/5.
11. www.cgw.com.au
Commissioner’s Variation Power
• Circumstances in which the Commissioner
may exercise the discretion to vary include:
• Where the vendor makes no capital gain;
• Same asset roll-over;
• Marriage or relationship breakdown roll-over;
• Roll-over for business restructure;
• Where the vendor will not have an income tax
liability for the income year;
• There is a mortgage over the CGT asset; and
• Foreclosure.
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Basic Withholding – real estate
• Excluded transactions:
• The acquisition of real property where the
market value of the CGT Asset just after the
transaction is less than $2 million
• CGT Asset
• can be a part interest in real estate – joint tenants or
tenants in common
• what if you were acquiring 50% of a property that
you already own a 50% interest in?
• what is the market value of a property that is being
transferred below market value?
15. www.cgw.com.au
Basic Withholding – real estate
• Clearance certificates – these certify that there
is nothing to suggest that the entity disposing of
the property is a foreign resident
• An acquirer does not have to pay if, before you
are required to pay you are given a valid
clearance certificate by all entities disposing of
the property.
• A valid clearance certificate is;
• issued by the ATO; and
• is for the period covering the time the transaction
was entered into.
16. www.cgw.com.au
Basic Withholding – clearance certificate
• Online application form – includes both the
contract date and the proposed settlement date
• Joint tenants or tenants in common – each party
needs to supply a clearance certificate
• Certificates cover a twelve month period.
18. www.cgw.com.au
Case Study - part one
• Donald and Hillary decide to jointly purchase a
holiday home at Noosa for $2.1 million. The property
is currently owned by two people as joint tenants.
• Are there any withholding tax issues?
It depends on what is meant by ‘just after the transaction’ and ‘CGT asset’.
The ATO would say ‘yes’.
• If there are withholding issues, what is the amount that needs to be paid
by Donald and Hilary to the ATO?
10% of the first element of the their cost base after settlement - $210,000
• Are the purchasers able to withhold from the purchase price at
settlement?
It depends. Purchasers needs to make sure that there is a right to withhold
within the contract.
• What if one of the vendors is a foreign resident?
Obtain a variation from the ATO.
19. www.cgw.com.au
Basic Withholding – indirect real property interests
Transaction is on approved stock exchange
Transaction is conducted using a crossing system
An amount is already required to be withheld
Security lending arrangements
Transaction arises in insolvency or bankruptcy
20. www.cgw.com.au
Basic Withholding – indirect real property interests
Obligation to withhold - indirect Australian real
property interests
Sale of shares or units
Exception - approved
stock exchange
Other minor exceptions -
eg. already required to
be withheld
21. www.cgw.com.au
Basic Withholding – indirect real property interests
• Only required to pay if the transferor is a relevant
foreign resident
• Know or reasonably believe that the transferor is a foreign
resident; or
• Do not reasonably believe that the transferor is an
Australian resident and the transferor has an address
outside of Australia; or
• Do not reasonably believe that the transferor is an
Australian resident and you are authorised to make a
payment outside Australia; or
• transferor has a connection outside Australia specified in
regulations
22. www.cgw.com.au
Basic Withholding – indirect real property interests
• Residency or interests declaration from
each entity disposing of their interests
• Applies to indirect Australian real property
interests and options to purchase real estate or
indirect Australian real property interests
• Declarations can declare:
• The entity will be an Australian resident; or
• The share or units are not indirect Australian real
property interests
23. www.cgw.com.au
Basic Withholding – indirect real property interests
• Declarations must be:
• in writing;
• Can be valid for a period of six months;
• for the period of time the transaction is entered
into; and
• received by the acquirer before settlement.
• Protection
• A valid declaration protects the acquirer
provided that they do not have actual
knowledge that the declaration is false
24. www.cgw.com.au
Case Study - part two
• Donald and Hillary decide to sell ½ of their Units (25% of
the total units) in the Presidential Unit Trust for $200,000.
• Are there any withholding tax issues?
Potentially. There is no $2 million dollar threshold. Are Donald or Hillary
‘relevant foreign residents’? Are the units indirect Australian real property
interests?
• What can the purchaser do to mitigate the risk?
Obtain a declaration from both Donald and Hillary. This does not have to be
a separate document but can be incorporated into a sale agreement.
25. www.cgw.com.au
Case Study – change of trustee
• Donald and Hillary decide that they would like to change the
trustee of the trust to Whitehouse Pty Ltd
• Are there any withholding tax issues?
Potentially. The ATO view is that the withholding provisions apply to legal
transfers of property. When there is a change of trustee there is a legal change of
ownership.
Withholding provisions based on ‘acquisitions’ – change of trustee is not an
acquisition because there is no change of ownership.
• To which assets in the trust would withholding potentially apply?
Residential property – Is the market value $2 million or more?
Shares in ASX listed companies? No.
Shares in Republican Pty Ltd? It depends. Are Donald and Hillary ‘relevant
foreign residents’? Are the shares indirect Australian real property interests?
• What if either Donald or Hillary were foreign residents?
26. www.cgw.com.au
CGT and family court orders
• CGT roll-over section 126-A
• connection with a breakdown of a relationship
• no reasonable likelihood of cohabitation
• transfer of assets to spouse
• Court order or financial agreement
27. www.cgw.com.au
Case Study – marriage breakdown
• Donald and Hillary’s marriage breaks down and
they negotiate the following consent orders:
• the family home in Brisbane is transferred to Hillary;
• the holiday home is transferred to Donald;
• the units in Presidential Unit Trust are transferred to
Donald’s newly established family trust; and
• the avocado farm is transferred to Hillary’s SMSF
28. www.cgw.com.au
Case Study – marriage breakdown
• Are there any withholding tax issues?
Yes. All of the real property potentially has a market value of $2 million or
more. A clearance certificate is required despite there being no capital gains
tax payable if the automatic rollover applies.
Donald and Hillary should also probably make declarations in relation to the
units in the Unit Trust
• What if Donald left Australia after the marriage breakdown
and was a relevant foreign resident?
Donald could not obtain a clearance certificate and therefore Hillary, the
SMSF and Donald’s family trust would be required to pay 10% of the cost
base of each property to the ATO.
If CGT rollover applies the cost base would be the original purchase price, if
not the market value of the entire property.
Obtaining a variation from the ATO would be an option.
This should be dealt with in the orders.
29. www.cgw.com.au
Other Circumstances
• What if Hillary or Donald died?
CGT withholding would apply to the transfer to the executor and to
beneficiaries.
CGT withholding would apply to transfer of joint tenancy
• What happens if the acquirer does not pay an
amount to the ATO?
The acquirer must pay a penalty equal to the amount that they were
required to pay. It is likely that they will not be able to recover this amount
from the transferor.
30. www.cgw.com.au
Practical Steps
• To mitigate this withholding risk for:
• Units, shares or options - get a declaration from the
transferor(s) – this protects the purchaser provided they
do not actually know that the declaration is false
• real estate – get a clearance certificate from the
transferor(s)
• Must be done before settlement
• Obligations should incorporated into the
agreement, order or deed.
31. www.cgw.com.au
Practical Steps
• Clearance certificate
• There is an online application process
• Usually 2-3 days but can be more if circumstances are
not typical
• Valid for 12 months
• Declaration
• Australian Resident; or
• Shares or units are not indirect taxable Australian
property
• No specific form, no submission to the ATO
• The ATO have provided a template declaration on their
website
32. www.cgw.com.au
Practical Steps
• If payment must be withheld
• Payment must be made to the ATO on or before the
changed of ownership – settlement
• Acquirer must register online – they will receive a
payment reference number- will need to use this
number when making the payment
• Multiple acquirers – can register together and make
the one payment
33. www.cgw.com.au
Practical Steps
• The amount paid by the acquired is a non-final withholding
payment and is credited to the transferor’s account once it
is paid.
• Transferor can claim tax credits on withholding tax already
paid
• Has the transferor correctly been identified by the acquirer
NB. The transferor is only able to claim tax credits if the
acquirer has actually made the payment to the ATO.