Taxation | SBT Business Tax Losses

Scope of work:

Public company with tax losses of $7.5m stretching back over 10 years, had failed the COT (change of ownership test) making these losses at risk of not being utilised. A Tax Opinion needed to be drafted on the availability of carried forward tax losses. These losses, to be claimed, would need to be covered by a successful opinion under the SBT (same business test). The same business test is a very strict test and requires a structured document that provides a "reasonably arguable position" that allow use of the tax losses and will provide basis of ruling the with Australian Taxation Office (ATO).

Requirements:

• Research and prepare background paper to support SBT test for tax losses
• Prepare draft opinion based on the supporting documentation
• Client Board of Directors to approve outcomes and recommendations
• Approximate project time of 4-6 weeks

Outcomes:

• Able to prepare all necessary supporting documentation
• Board of Directors supported and approved the recommendations
• Company utilised $7.5m in tax losses, cash benefit of over $2.2m

Business Plan | Accounting Firm

Completed business plan and financial model for accounting firm. Business plan to be used to obtain equity funding for an acquisition.

$830k acquisition and $330k of business investment funds sort.

Approximately 6-8 days of work. Client charge $10-15k.