Restructure: Improvement in Cash Flow, Reduction in Tax Liabilities
Circumstances / Situation
After many years of rapid expansion our client realised they could no longer viably operate the business through a discretionary trust and needed to operate through a company. As the business utilises a QBCC licence with stringent ongoing QBCC financial requirements, they needed someone with expertise in building and construction, QBCC and complex tax matters.
Solution
Taking into account their long-term strategic goals, we were able to provide the business and their advisers with several practical options to restructure the business and assets into a company. These goals included buying a new commercial premises and commencing manufacturing operations. Our restructure took all these variables into account while facilitating and project managing all facets of the restructure. We facilitated the valuation of the business, stamp duty and legal documentation with related QBCC MFR lodgements for their new licence.
Outcome
As they expand rapidly to over $50m in turnover, their ongoing tax liabilities have been reduced, and their cash flow has improved. The client now has a structure which is future fit.
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