Business Description

Craig and Carrie were fruit shop owners who were frustrated with the limited advice provided by their accountant. The tax returns and financials were completed but the business was run as a sole trader which provided no tax benefits and poor asset protection.

Goals

Craig and Carrie wanted to have their structure reviewed and their tax situation analysed to see whether anything could be done to reduce their tax liability.

Outcome

We transferred the business into a discretionary trust and set up a sales agreement. Utilising the CGT concessions, no tax was paid on this transfer and there will be substantial tax savings on future profits. In addition, we liaised with their bank to obtain finance for the trust to purchase the business from the sole trader. These deductible loan was used to pay down their personal debts, creating an interest saving as well.

Business Description

Peter saw our website and contacted us with a tax problem. He had sold his pharmacy business and the business premises in prior years and was up for substantial capital gains tax. Unfortunately his accountant, although proficient with tax for pharmacies, had no idea of the small business CGT concessions. The ATO was after the taxes that the previous accountant had said were owed which was well in excess of $100,000.

Goals

Peter came to us so that we could review his situation and determine whether there was any recourse or amendments possible that would reduce his tax liability.

Outcome

We discovered that the small business concessions had not been correctly claimed for both the sale of the business and the sale of the property. Due to poor advice, he had sold his business just prior to turning 55. If he had received the appropriate advice to wait until then, the entire pharmacy sale would have tax free. Instead, we were forced to look to minimise the capital gains tax on the sale of the property. We lodged amendments and appeals with the ATO that implemented the small business CGT concessions and resulted in the taxpayer’s tax bills being halved.

Business Description

Real Estate was a newly created real estate agency that was established by a client who had previously worked as an employee rather than a business owner.

Goals

With a real passion for creating a real estate agency that was different, the client had a firm business model and direction, but needed help with the administration and tax side of things where their experience and knowledge was lacking.

Outcome

Elysium helped establish the business in the most tax effective structure and put in place an external administration and bookkeeping support service that took care of all the tax and accounting services. The client was able to concentrate on growing the business and has experienced substantial growth in their first years.

Business Description

Barry and Phil were two clients who came to us after they had sold their gardening supplies business to their sons. They had been extremely successful in business and had acquired and owned many of the business’ commercial premises personally or in partnership.

Goals

Now retired, both Barry and Phil were paying taxes on the rent earned by these properties and were facing substantial capital gain tax liabilities on selling these properties later in life.

Outcome

Elysium helped implement a strategy to transfer these properties into their self-managed super funds. In consultation with legal experts, we ensured the client avoided paying stamp duty, accessed the small business CGT concessions and remained within the super contribution caps. As a result, the clients now had properties which were CGT free and paid no taxes on the rent received.