Private & Family-Owned Businesses

The impact of taxation law on family businesses are as dynamic as the commercial environment and the personalities of the family members themselves.

Often, family businesses are comprised of multiple generations, each with varying degrees of interest and oversight of the business.

Family businesses have special challenges arising from the one thing that usually makes them successful in the first place: the drive and passion of the founder - or founders - who have built the business, and the relationships between key players.

Founders are increasingly having to face the prospect of stepping back from the day-to-day running of the business and pass the baton to the next generation. Eventually, there will be a need, to exit the business entirely, whether through an external sale or succession. That is, assuming there is someone ready and able to step up and take over.

Tax inadvertently plays a crucial role in both the running of the business, and when another family member or members assume a leadership role.

These situations need careful planning, and may require a review of the business structure to ensure it is suitable for a future transaction.

It is therefore vital to engage a qualified, experienced tax specialist who will deliver well-considered and timely tax advice – and who understands the nuances of family-owned operations.

How we help clients

HLB Mann Judd’s tax specialists advise family businesses who are looking for innovative tax strategies. Our family business clients require a strong understanding of a wide range of Australian tax rules that may impact the business, the individual family members and their other associated entities, as well as detailed knowledge of their main business activities and each individual’s personal situation.

Our clients call upon us to advise across a range of tax and accounting compliance, and advisory matters, including:

• A full range of tax advice and compliance assistance, covering income tax and specialty taxes such as GST, FBT, R&D tax concession claims, employment taxes and other state-based taxes
• Tax structuring and restructuring advice, to ensure the family’s business and personal assets are adequately protected
• Tax issues relating to business succession and exit planning, including advising on the eligibility for and application of small business CGT concessions, to business sales and restructures, to achieve the most effective outcome

• Ensure tax adherence and protection in the event of an ATO review
• Advising on Division 7A rules dealing with shareholder loans from private companies, and the effective use of family trusts in family business and investment structures.