MAx - Issue 2
8 June 2010
Earn out arrangements, dividend traps and share sale facilities
- The tax treatment of earn out arrangements has been in limbo since the ATO released TR 2007/D10 in October 2007. This uncertainty should be partly alleviated through announced changes to the treatment of qualifying earn outs.
- Difficulties where cash is ‘trapped’ in a subsidiary could be relieved by the Corporations Amendment (Corporate Reporting Reform) Bill 2010.
- A minor announcement was made in the 2010 Federal Budget in relation to the interaction of CGT rollover relief and share sale facilities.
These points are explained in our attached edition of MAx.
For further information please contact:
Josh Cardwell
Director, Greenwoods & Freehills
+61 2 9225 5887
josh.cardwell@gf.com.au
Toby Eggleston
Director, Greenwoods & Freehills
+61 3 9228 1451
toby.eggleston@gf.com.au
Richard Hendriks
Director, Greenwoods & Freehills
+61 2 9225 5971
richard.hendriks@gf.com.au
Cameron Blackwood
Senior Associate, Greenwoods & Freehills
+61 2 9225 5950
cameron.blackwood@gf.com.au