Getting Funds Out of a Company - More to it Than Raiding a Piggy Bank

Getting money out of a piggy bank usually meant carefully manoeuvring a knife through a slot to guide out a few coins (no good for notes) or taking to it with a hammer if more serious funds were needed. Getting funds out of a company is a bit more complicated. This session explores the various methods funds can be extracted from a company, along with the anti avoidance provisions that need to be given due consideration, including:

• Setting remuneration for associated parties, including:
  • the implications if deemed excessive (sec. 109 ITAA 1936)
  • how the genuine redundancy payment rules work for directors and associates (TR 2009/2)
• Liquidation or deregistration: getting the best tax outcome
• Managing strategies for extracting capital from the company, including:
  • temporary full expensing, accounting depreciation and franking credit mismatch
  • dividend access share schemes - can they be effective? (TA 2012/4, TD 2014/1)
• Strategies to manage top up tax where highest marginal tax rate 47% and company tax rate 25%
• ATO’s concerns where a holding company is interposed to access company profits tax free (TA 2023/1)
• Road testing of various scenarios through case studies