Companies are generally regarded as inappropriate vehicles for holding appreciating assets.
This seminar paper explores income tax and CGT issues arising from sale of a business and the voluntary liquidation of a private company and considers a number of practical issues including:
- the tax impact on pre and post CGT shareholdings
- what changes matter for a pre or post CGT business
- dividend distribution issues for interim and final distributions
- how the distribution affects pre CGT and tax-free amounts
- franking account issues under the new rules
- the operation of CGT concessions at the corporate level including the small business concessions
- eligibility at shareholder level for the 50% CGT discount
- treatment of the capital proceeds for the cancellation of shares, including the associated dividend issues.