Federal Taxes
Having taxation matters dealt with by a trustworthy and knowledgeable team that understands the inner workings of your business allows you to focus on achieving results.
Led by industry recognised tax professionals and technical tax commentators, the Sladen Legal taxation team provides insightful and understandable commercial, tax advisory solutions to addressing complex and evolving State, Federal and international revenue laws.
We represent high wealth individuals, businesses on the BRW 200 Wealth List and BRW Fastest 100 List, unlisted public companies, private companies, closely held trusts and leading not for profit entities.
We work closely with our clients to ensure that they understand how ever-changing revenue laws will impact their interests and how to best meet their commercial and tax obligations. We provide advice on specific taxes and revenue laws and assist clients in efficiently managing tax disputes.
In addition to working directly with our clients we also work with many of Australia’s leading accounting firms and professional services advisers, providing them with specialised taxation advice and guidance to ensure that they are achieving the best outcomes for their clients.
The knowledge and technical expertise of our taxation team is widely recognised and they are regularly invited to present at industry events, forums and conferences. They participate in the consultative committees of the Australian Taxation Office and Treasury, which are responsible for the creation and interpretation of tax law.
We provide advice in the following areas of taxation:
Income tax
Capital Gains Tax
Goods and Services Tax
Employment Taxes including Fringe Benefits Tax
State Taxes such as Payroll and Stamp Duty
International taxation arrangements
Property taxes
Superannuation taxes
Contact
+61 3 9611 0104
Taxation News
Sladen Legal was recognised in the 2023 listing Doyles Guide Leading Tax Law Firms as Third Tier Leading Tax Law Firm.
The 2023 listing of leading Victorian Tax Law Firms details firms practising in taxation advisory and disputes matters in the Victorian legal market who have been identified by clients and peers for their expertise in the area.
Tax Reviews, Audits, Controversy and Disputes
We have extensive experience acting for private enterprise in reviews, audits and disputes with the Australian Taxation Office (ATO) in a range of Federal tax matters.
Our tax team are experts in their field widely recognised for their commitment to developing innovative resolutions to tax reviews, audits, and disputes. We have a wealth of experience and knowledge in substantive revenue laws, ATO policies and procedures, taxation and judicial administrative law, and tribunal and court rules.
In all tax reviews, audits, or disputes we adopt a collaborative approach to ensure that we remain dedicated to managing risk and minimising disruption to your business throughout conduct and life of the review, audit, or dispute.
We provide advice and services in the following areas relating to reviews, audits, controversy, and disputes relating to pre and post lodgement reviews, audits, and disputes:
Questionnaire responses and audit activities
Informal and formal information requests and document exchange
Voluntary disclosures
Objections
Penalty and interest remission applications
Settlement negotiations
Debt enforcement management
Freedom of Information applications
Administrative reviews, court appeals and litigation
Tax agent disciplinary activities
Our Tax Team regularly provide updated industry thoughts here and have published a Tax Disputes Series which includes the following topics:
Part 2 - Voluntary Disclosures
Part 3 - Settlements
Part 4 - Mitigation Of Interest And Penalties
Part 5 - ATO Reviews And Audits
Part 6 - Objections
Our services are not limited to once an ATO review, audit, or dispute has commenced. Our services incorporate those to prepare for a review, audit, or dispute including as part of the ATO ‘Top 500’, ‘Next 5000’, or ‘Justified Trust’ programmes, such as:
Reviewing your tax risk governance framework
Identifying any tax risks and ways to mitigate those risks
Early engagement strategies such as voluntary disclosures or pre-lodgment reviews
Tax Reviews, Audits, Controversy and Disputes
Cryptocurrency
Through the application of blockchain technology, cryptocurrency has changed the landscape for personal and business transactions. Cryptocurrency has enabled transactions to become more efficient and effective across the globe. As cryptocurrency becomes more popular it is crucial for individuals and businesses to understand the legal implications.
Our tax team are experts in their field and are committed to navigating client’s through the developing legislation around cryptocurrency. Our team offers a wealth of experience and knowledge in revenue law and procedures complimented by an understanding of digital currencies which enables them to understand and guide clients in this new area of law.
We provide advice and services on the following areas of cryptocurrency:
Advice on the income tax treatment of cryptocurrency transactions;
Establishing reasonably arguable position supporting tax positions taken on cryptocurrency transactions;
Applications for private binding rulings to the Commissioner of Federal Taxation regarding the appropriate income tax treatment of cryptocurrency dealings;
Advising on disputes with the ATO on the treatment of cryptocurrency disposals;
Effective structuring for cryptocurrency investments and businesses;
Advice on the GST implications and compliance requirements when trading cryptocurrency and transacting in cryptocurrency; and
Succession planning and protecting your digital assets for beneficiaries.
Cryptocurrency News
Tax Consolidation and TSFAs
Sladen Legal has significant experience in guiding clients through every stage of the tax consolidation process.
Whilst tax consolidation can provide significant opportunities for wholly-owned groups, especially in the current economic climate, the tax consolidation legislation is extremely complex and evolving and requires careful application.
Our tax consolidation lawyers have previous experience in large accounting firms and understand the technical and accounting complexities associated with the consolidation process. This gives us the unique ability to provide our clients and their advisors with strategic and practical advice as well as prepare all requisite documentation.
We offer discounted rates to accounting and professional services firms that exclusively engage us to prepare tax sharing and funding agreements and other related documentation for their clients.
Our clients include large and mid-tier accounting and professional services firms, public companies, private corporate groups and their advisers.
Why consolidate?
Tax consolidation can provide significant tax efficiencies and savings when restructuring and administering corporate groups.
To consolidate, a group must consist of an Australian-resident holding (‘head’) company and at least one wholly-owned resident subsidiary (which may be a company, trust or partnership) (specific rules apply as to eligibility requirements for membership of a consolidated group).
A consolidated group is treated as a single entity for income tax purposes and the head company is generally liable for the income tax debts of the group. The head company would maintain a single franking account and accumulate any tax losses of the group.
The tax consolidation process requires careful planning, and the assistance and guidance of experienced professionals can be invaluable:
the ability to continue to use the prior year tax losses of the members to offset against the consolidated group’s taxable income can provide cash-flow advantages to the group, provided that various tax loss transfer and utilisation rules are satisfied;
as intra-group transactions are disregarded for income tax purposes, tax consolidation can facilitate tax effective means for undertaking corporate restructures. Such opportunities must however be carefully reviewed in the context of the anti-avoidance provisions in the income tax legislation. Further, any stamp duty consequences from the transfer of business assets would depend on the nature and location of each asset and must also be carefully considered;
when a consolidated group is formed or members join an existing group, the tax cost of each subsidiary’s assets is reset at the relevant tax cost setting amount (TCSA) to recognise the cost to the head company of those assets. The TCSA of a subsidiary’s assets is based on a share of the allocable cost amount (Entry ACA) of each entity (being the cost of the head company’s interest in the subsidiary, adjusted for liabilities, undistributed profits, distributions and losses of each entity and tax deductions to which the head company would become entitled). ACA calculations are complex and require careful consideration of a number of technical concepts. With existing entities, we recommend that the tax impact of resetting the cost of assets be carefully reviewed prior to consolidating;
when an a subsidiary leaves a consolidated group, the head company is required to calculate the TCSA of its interest in that subsidiary by means of an Exit ACA calculation and allocate the ACA to its shares in that subsidiary; and
it is crucial to have the appropriate documentation in place to avoid unintended and unnecessary tax consequences. For example, if the head company fails to pay a group income tax liability by the due date, subsidiary members are jointly and severally liable for that liability. This situation can be avoided by group members executing a valid Tax Sharing Agreement which reasonably allocates the liability amongst the parties. A group member would then only be liable for their portion of the group debt, calculated in accordance with the terms of the Agreement. A Tax Sharing Agreement should also provide for the entry and exit of members to and from the consolidated group so as to ensure that:
when members join a consolidated group, the head company’s and the new member’s obligations are appropriately documented; and
when a member leaves the consolidated group, it obtains a ‘clear exit’ from income tax liabilities that are not due and payable at the time of the exit - this is especially reassuring for the third party purchaser of the shares in a subsidiary member of a consolidated group.
A Tax Funding Agreement can also provide an internal funding arrangement to ensure that the head company can fund the consolidated group's tax liability payments by members funding their proportion of the liability.
How we can help you
We can assist with preparing documentation for, and advising on:
forming a tax consolidated group, including:
a. eligibility issues;
b. transferring prior year income tax losses from a subsidiary to the head company;
c. Entry ACA calculations;
d. Australian Taxation Office notification requirements; and
e. Preparing a comprehensive report for all members of the group.new members joining an existing group;
members leaving an existing group;
Exit ACA calculations;
intra-group transactions;
stamp duty consequences associated with intra-group transactions;
restructures involving new and existing consolidated groups;
Tax Sharing and Tax Funding Agreements; and
varying an existing Tax Sharing Agreement and/or a Tax Funding Agreement.
International Tax
Sladen Legal’s tax team has provided legal advice to many individuals and businesses on international tax issues.
The increased global mobility of individuals and online transactions, together with the deregulation of financial markets and exchange controls since the 1980s, mean that international tax issues are, in many instances, “the new black”.
This may be “baby boomers” who accumulated wealth in “tax friendly” jurisdictions, migrants to Australia leaving behind assets and family in their home jurisdictions, or Australian residents who move overseas.
Further, if you are an Australian resident doing business overseas or a foreign resident doing business in Australia, your tax obligations may be affected by tax treaties between Australia and other countries. Therefore, it is important that you seek proper legal advice from an experienced tax lawyer to understand your rights and obligations under the law
Our tax team have the expertise to give you legal advice on international tax issues:
Working out your residency
Australians doing business overseas
Foreign residents doing business in Australia
Payments to foreign residents
International tax agreements
Foreign exchange gains and losses
Our tax team regularly provide updated industry thoughts here and has published an International Tax Series which includes the following topics:
Part 1 - Are you a resident or non-resident?
Part 2 - Income tax consequences for non-resident beneficiaries
Part 3 - Australian trusts- capital gains consequences for foreign beneficiaries
Part 4 - Tax consequences for non-resident beneficiaries of deceased estates
Part 5 - Australian residents, foreign trusts, and foreign funds
Part 6 - Recap: foreign residents, Australian residents, and capital gains
Part 7 - CGT Main Residence Exemption For Foreign Resident Beneficiaries Of A Deceased Estate
Further Information
Indirect Tax Sharing and Funding Agreements for GST Groups
Sladen Legal can assist GST groups with Indirect Tax Sharing and Funding Agreements.
GST Groups
The GST legislation provides that two or more entities can form a GST group if each satisfies the membership requirements, each agrees in writing to the formation of the group, and the entity nominated as the “representative member”, is an Australian resident, and notifies the Commissioner, in the approved form, of the formation of the group.
A GST group is generally treated as a single entity for the purposes of certain indirect tax laws (GST, wine tax, fuel tax, luxury car tax). Intra-group transactions between the members of the GST group are ignored for the purposes of the indirect tax laws. The representative member submits a GST return, and is liable for the group’s indirect tax law liabilities and entitled to the associated tax credits.
Indirect Tax Sharing and Funding Agreements
There are multiple complex taxation laws governing GST groups. Therefore, it is crucial to have the appropriate documentation in place to clearly define (and be able to determine) each member’s rights and obligations, and thereby avoid any adverse tax consequences.
For example, if the representative member fails to pay a group indirect tax liability by the due date, group members are jointly and severally liable for that liability. This situation can be avoided by group members executing a valid Indirect Tax Sharing Agreement which reasonably allocates the liability amongst the parties. A group member would then only be liable for their “contribution amount” (being that member’s portion of the group debt, reasonably allocated in accordance with the terms of the Agreement).
An Indirect Tax Sharing Agreement should also provide for the entry and exit of members to and from the GST group so as to ensure that:
when a member joins the group, the new member’s obligations are appropriately documented; and
when a member leaves the group, it obtains a ‘clear exit’ from indirect tax liabilities that are not due and payable at the time of the exit - this is especially reassuring for a third party purchaser of a former GST group member.
An Indirect Tax Funding Agreement can also provide an internal funding arrangement to ensure that the representative member can fund the GST group's tax liability payments by members funding their proportion of the group’s liability.
How we can help you
We can assist with preparing documentation for, and advising on:
forming a GST group, including:
· eligibility issues; and
· Australian Taxation Office notification requirements.new members joining an existing group;
members leaving an existing group;
intra-group transactions;
Indirect Tax Sharing and Tax Funding Agreements; and
varying an existing Indirect Tax Sharing Agreement and/or a Tax Funding Agreement.
Our GST group clients include large and mid-tier accounting and professional services firms and private groups.
We offer discounted rates to accounting and professional services firms that exclusively engage us to prepare Indirect Tax sharing and Funding Agreements and other related documentation for their clients.