Engaging a lawyer early in the process of establishing your business as well as when acquiring or disposing of assets can help you make informed decisions that provide you with the best tax planning for your business and personal financial goals.

A lawyer with experience in dealing with capital gains tax can:

• provide comparisons between business structures and explain the advantages and disadvantages of each for your particular business;
• advise what a CGT asset is;
• advise when a capital gain ‘event’ occurs;
• advise you on eligibility criteria for small business concessions, reductions and allowable deductions;
• recommend ways in which your company can manage taxation obligations when acquiring and disposing of assets;
• keep you keep up to date with any changes in capital gains tax law that may affect you or your business;
• assist you with any appeal or objection to a tax assessment made by the Australian Taxation Office (ATO);
• advise you on your rights if a demand for documents is made by the ATO; and
• if the ATO does demand documentation your lawyer can assert legal professional privilege which limits the Commissioner’s powers to demand such documentation.

The earlier you engage a lawyer when establishing a new business the more efficient your planning and decision regarding tax can be. Mistakes can be avoided by having a trusted and skilled advisor who can provide prompt advice. Having someone guide you through the complexities of capital gains tax law can also save you substantial time and money both at the outset but also as you plan to acquire and dispose of business assets.