Debt deduction creation rules – coming to a private group near you

Debt deduction creation rules – coming to a private group near you

While the thin capitalisation rules have traditionally had limited application to many private groups, the new debt deduction creation rules (DDCR) that apply from 1 July 2024 are a clear creep into that space.

Sladen Legal’s Tax Practice Recognised In Doyles Guide Victoria 2024

Sladen Legal’s Tax Practice Recognised In Doyles Guide Victoria 2024

Sladen Legal has been recognised as a Third Tier Leading Tax Law Firm in Victoria for 2024 by Doyle's Guide. Doyle's Guide is a respected and independent directory that highlights Australia’s top firms and legal professionals.

Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

Why it is important to have disclaimers:  a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

The High Court of Australia’s judgment in Mallonland Pty Ltd & Anor v Advanta Seeds Pty Ltd [2024] HCA 25 emphasised the significance of incorporating clearly written disclaimers on your product’s packaging to limit your liability for pure economic loss claims in negligence.

The Importance of Clear and Formal Documentation by Companies: Lessons from Aurora Australasia Pty Ltd v Hunt Prosperity Pty Ltd

The Importance of Clear and Formal Documentation by Companies: Lessons from Aurora Australasia Pty Ltd v Hunt Prosperity Pty Ltd

A company director’s request to redeem money from a unit trust has been rejected by the Court. The New South Wales Supreme Court ruling emphasises the need for clear documentation of intended transactions within a company structure.

‘Subject to’: why these words can be a trap when contracting if you are not clear about what you intend.

‘Subject to’: why these words can be a trap when contracting if you are not clear about what you intend.

The specific wording of a contract is crucial to its interpretation and may be beneficial or a trap to parties. Many parties fail to understand the implications that the well-known phrase ‘subject to contract’ will have on their agreements. Masters v Cameron (1954) 91 CLR 353 is the leading Australian case which examines the consequences of certain wording on parties to a contract, and whether such wording leads to an enforceable and binding contract. 

Sladen Snippet - PBR determines that death benefit to a spouse’s estate is not tax free

Sladen Snippet - PBR determines that death benefit to a spouse’s estate is not tax free

Is the payment of a death benefit to a spouse’s estate tax free? The Australian Taxation Office (ATO) has released a Private Binding Ruling 1052273158502 (PBR) in which it determined that it was not under section 302-10(2) of the Income Tax Assessment Act 1997 (ITAA 97).

Sladen Snippet - Absolute Vision Technologies – Former SMSF corporate trustee in administration but still holds SMSF property

Sladen Snippet - Absolute Vision Technologies – Former SMSF corporate trustee in administration but still holds SMSF property

What happens if the former trustee of an SMSF is still the registered proprietor of an SMSF property and goes into administration? This issue was considered in the decision of Re Absolute Vision Technologies Pty Ltd (subject to deed of company administration) [2024] NSWSC 1010 (13 August 2024). There, the Court ordered that a contract be completed where the former trustee entered into a contract of sale of real estate (Suite 901) notwithstanding it was in administration.

Sladen Snippet - Consultation process Franchising code of conduct review

Sladen Snippet - Consultation process Franchising code of conduct review

The Australian government has proposed reforms to the Competition and Consumer Act in response to the Food and Grocery Code of Conduct and Franchising Code of Conduct reviews. The consultation process closes on 4 October 2024 and welcomes submissions from interested stakeholders.

Sladen Snippet – Proposed law to allow conversion of legacy pensions and reserves

Sladen Snippet – Proposed law to allow conversion of legacy pensions and reserves

At long last proposed regulations have been released for consultation that would permit the conversion of legacy pensions and reserves over a 5 year period. As a nice added bonus, the regulations will also better allow allocations from non-pension reserves.

Sladen Snippet - Private Wealth Advisor Program: advisors beware – you are on the ATO’s watch list

Sladen Snippet - Private Wealth Advisor Program: advisors beware – you are on the ATO’s watch list

Over the course of the last year, the Australian Taxation Office (ATO) has repeatedly indicated in various forums that advisors are in the ATO’s sights.

Sladen Snippet – Gainer Part 6 – SMSF trustee indemnity

Sladen Snippet – Gainer Part 6 – SMSF trustee indemnity

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice that the self managed superannuation fund (SMSF) corporate trustee (Gainer Associates Pty Ltd – referred to as Gainer) could be indemnified from the assets of the SMSF in relation to all issues disclosed to the Court in that application for judicial advice.

Winding up process and considerations for creditors following an unsatisfied statutory demand

Winding up process and considerations for creditors following an unsatisfied statutory demand

The most common basis upon which creditors make an application to wind up a company and appoint liquidators is upon the non-compliance with a Creditor’s Statutory Demand. If the debtor company ignores the Creditor’s Statutory Demand and no payment or compromise is reached then the company is presumed insolvent, paving the way to wind up the company.

This article contains an explanation of the steps required when lodging an application for winding up in these circumstances, as well as some helpful tips to navigate the process effectively.

When Restructuring Goes Wrong: Lessons from Connelly (liquidator) v Papadopoulos

When Restructuring Goes Wrong: Lessons from Connelly (liquidator) v Papadopoulos

The Federal Court decision of Connelly v Papadopoulos re TSK Pty Ltd (in liq) highlights some of the implications for professional advisers. directors and officers involved in restructuring of companies and the risks encountered when engaging in restructuring that may be later viewed as asset stripping schemes under the creditor defeating dispositions provisions in the Corporations Act. 

Sladen Snippet – Gainer Part 5 – SMSF trustee director remuneration

Sladen Snippet – Gainer Part 5 – SMSF trustee director remuneration

In this fifth part of our series on the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, we examine Gainer’s request for the Court’s advice as to whether it would be justified to remunerate Mr Heesh for his time and efforts in acting as sole director of Gainer in its role as the corporate trustee for a self managed superannuation fund (SMSF) and, if so, at which rate and whether the remuneration could be for some or all of the work completed by Mr Heesh.

Sladen Snippet – Gainer Part 3 – seeking advice to defend trustee removal proceedings

Sladen Snippet – Gainer Part 3 – seeking advice to defend trustee removal proceedings

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice that the self managed superannuation fund (SMSF) trustee would be justified in defending the removal proceedings to be brought against it by Mr Bone, the partner of the deceased member of the SMSF.