New Laws Introduced to Combat Illegal Phoenixing

The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2019 (Cth) (“the Act”) came into effect earlier this year to combat Phoenix activity. Illegal Phoenixing arises when the assets of a company are transferred for minimal, if any, value to a related company to avoid payment of the transferor company’s debts. Commonly, the transferor company is … Read more New Laws Introduced to Combat Illegal Phoenixing

ATO Director Penalties: What Company Directors Need to do to Avoid Personal Liability

Updated May 2020 Under the ATO’s Director Penalty regime company Directors can be personally liable for company obligations. The Director Penalty regime applies to unpaid “PAYG” withholding amounts, Superannuation Guarantee Charge “SGC” obligations and, from 1 April 2020, GST liabilities The effect of the Director Penalty regime is that if a company of which a … Read more ATO Director Penalties: What Company Directors Need to do to Avoid Personal Liability

Safe Harbour & Directors’ Liability for Insolvent Trading

On 19 September 2017 amendments, to the Corporations Act 2001 commenced which create a “safe harbour” for Directors to protect them from personal liability for debts incurred by an insolvent company in certain circumstances. Why the need for Safe Harbour Prior to the amendments, the provisions of the Corporations Act governing corporate insolvency focused on … Read more Safe Harbour & Directors’ Liability for Insolvent Trading

Common Misconceptions about Contracting in the Building & Construction Industry and what to do to avoid getting caught out.

When I ask clients whether a written contract was in place or whether variations had been documented, too often I receive the following response “no there was no contract, we just agreed to it” or “I didn’t think it was necessary it was a small job“. Firstly, it is an incorrect assumption that just because … Read more Common Misconceptions about Contracting in the Building & Construction Industry and what to do to avoid getting caught out.

Service of Payment Claims by Email

CAN it be done? SHOULD it be done? With the increasing use of emails for communications, it is becoming commonplace for businesses to send tax invoices to clients via email for payment. If the tax invoice relates to work performed under a construction contract, your business may have rights to prompt payment under the Building … Read more Service of Payment Claims by Email

Why ignorance of loan balances can lead to tax nightmares.

Do you own a private company? Have you received payments not accounted for as wages or salaries this financial year? As 30 June approaches it is time to ensure your business affairs are in order. This includes ensuring you have Division 7A Loan Agreements in place, where necessary. What is Division 7A? Division 7A of … Read more Why ignorance of loan balances can lead to tax nightmares.

Consequences of not making Effective Business Contracts

As an Accredited Specialist in Commercial Litigation I have dealt with all kinds of business disputes. By far the most common cause of commercial disputes is the failure of the parties to adequately record the terms of their agreement in writing. This is particularly common in the building and construction industry. When there is an … Read more Consequences of not making Effective Business Contracts

Risks of not making a legal Buy/Sell Agreement

Introduction to Business Succession Planning What is a Buy/Sell Option Agreement? Why do I need a Buy/Sell Option Agreement? What is a Shareholders’ Agreement? Why do I need a Shareholders’ Agreement (Partnership Agreement)? Funding the Purchase Price under a Business Succession Plan CGT & Insurance Proceeds Self Ownership of Personal Insurance Implications for Self Ownership … Read more Risks of not making a legal Buy/Sell Agreement

Introduction to Business Succession Planning

Congratulations on taking the first step to protect your interest in your co-owned business. Business Succession Planning is essential for protecting your interest in a co-owned business and is an integral part of every business co-owner’s individual Estate Planning. “Business Succession Planning” means: Planning for the sale or purchase of a co-owners’ interest in a … Read more Introduction to Business Succession Planning

What is a Buy/Sell Option Agreement?

  Introduction to Business Succession Planning What is a Buy/Sell Option Agreement? A Buy/Sell Option Agreement is an agreement between co-owners of a business granting each other options to buy or sell their respective interests upon the occurrence of specified Option Events. The Option Events are typically: the Death of a co-owner; the Permanent Disablement … Read more What is a Buy/Sell Option Agreement?