If you are not aware of what actually commercial deals are, let’s have a brief outlook on it. Australian Taxation Office defines a commercial deal as a significant business transaction that affects the structure of a business. All privately owned groups can engage with the ATO for a pre-lodgment compliance agreement. Some common examples of commercial deals include:

• Demergers
• Divesting
• Financing And Refinancing
• Initial Public Offerings
• Mergers And Acquisitions
• Private Equity
• Restructures
• Sale Of Business Or Assets
• Sale Of Commercial Property
• Share Buybacks
• Business Takeovers

What To Expect?

All commercial deals or business transactions regarding restructure, sale of a business, or initial public offering are complex and accompanied by the tax consequences and outcomes.

If you are up with a commercial deal, the staff at the ATO will work collaboratively or guide you about the tax laws applied. You can also rely on a qualified tax accountant to help you understand how the law applies and confirm whether the tax return you calculated is correct or not.

How It Works?

If you are relying on the Australian Taxation Office to guide you through, the process includes:

• You will be assigned a dedicated officer.
• You’ll be contacted to set up the first meeting for a broad understanding of the commercial deal.
• The officer will review the relevant contracts and other pertinent documentation.
• The officer will work with you to request any additional information and understand the details.
• You’ll be able to communicate decisions clearly and get timely updates.

No matter, you are contacting the ATO directly or taking the assistance of a taxation firm in Geelong, getting practical certainty assures the tax preparation for a business transaction is appropriate and accurate before you lodge your tax return. The foremost focus of commercial deals early engagement service is to reduce the risk of a review or audit and prevent tax issues from becoming corporate disputes.

For more information or tax assistance, feel free to discuss your situation with a registered tax accountant at KPG Taxation.