Every time you put a pen to paper in terms of a transaction or document dealing with asset ownership, you should be thinking about the following taxes:
- Stamp duty
- Income tax
- Capital gains tax
All too often, transactions are done or documents are signed without considering these taxes. Don’t get caught out when some prior planning can identify the issues so that you complete the transaction or sign the document in the full knowledge of the taxation implications and with the advantage of any concessions that may otherwise apply.
Often when you deal with a lawyer, particularly in a large law firm, the lawyer you are working with is not able to manage these issues for you themselves and they have to ask someone else. You expect that. However, at Sydney Business Lawyers, we have the expertise to cost effectively provide advice to you about these taxes as they relate to many of the day to day transactions and documents that business lawyers deal with.
Sometimes the taxation implication of the transaction you are involved in or the document you are about to sign is not apparent, such as where there is a change of trustee. Certainly in NSW, if not done with care, a change of trustee of a trust with significant real estate assets can result in unwanted stamp duty at the rate of as much as 5.5% on the market value of the assets. There are many stings like this for the uninitiated and solutions are often available. So before your next transaction or needing to sign a document, why not talk to us to see what are the potential problems and opportunities to manage them.
If you would like any assistance with the taxation implications of a transaction you are involved in or document that you need to sign or issues relating to your SMSF, please contact Sydney Business Lawyers on 8915 4900 or firstname.lastname@example.org.