Home – New Forums Money matters Selling Big Business With Aussie Taxation?

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  • #983317
    GSanders12
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    Given the recent sale in the US of Tumblr by Yahoo for 1.1B.. how would tax in Australia work when selling a business of that magnitude?

    My question is one that I always wondered for Australian business taxations.. If a service business was to be sold for 100 Million Dollars & the founder had 100% ownership.. what would he/she gain in NET after all taxes & fees for selling the 100M company?

    #1141741
    Mark Jeffreson
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    $100 million less legal team costs = not much.

    Seriously, it depends on so many things that question is impossible to answer. These include the way the asset-holding was structured and the dissection of proceeds against the capital costs.

    This is where good tax advice at the outset can really pay dividends later.

    Cheers
    Mark

    #1141742
    MH08
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    From experience, colleague of mine sold his trucking empire for $350M.

    Tax – 15%
    Legal fees are 1.5% of the value.
    and Sundry expenses to the sale are around 3%.

    My company structure is based on the same structure as company’s worth in excess of $100M+, children in the family own houses at 1% of a trust structure to limit tax, and everyone is paid out of a pyramid (parent company) trust structure and keeps getting diluted through SMSF with less than 4 members, with the SMSF purchasing property that is real estate and not for commercial use. This is why the rich stay rich, there families work like dynasties and they all play a part as financial instruments.

    Then we use convertible bonds within companies for family to invest into the companies and receive what is similar to a reverse mortgage, but through a company.

    They also keep private equity firms that perform financial services for them and are paid to hide more of their funds. It works out to pay a financial controller 3% of your funds to be managed compared to paying 30% where he can reduce it down to 15%.

    There’s a huge difference from a professional accountant to financial controller with experience in banking and finance.

    Google just got caught doing this, Google was caught only paying (don’t quote me) around $170K something only, difference with them is that they are a public company and it’s easier to trace.

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