This month we have prepared two articles that cover current issues we believe are relevant to SME advisors.
The first article considers the major (and frightening) impact the Personal Property Securities Act can have on determining who really ‘owns’ an asset. This was recently confirmed by the Courts in the Queensland Excavation Services case.
The second article looks at the success the ATO and OSR are having in audits (and court cases) in relation to entities paying management fees and other intercompany charges (particularly to related parties).
Are your assets really protected?
The old saying that “possession is nine-tenths of the law” appears to be more relevant now than ever, with a recent case confirming that even if you can prove beyond any doubt that you own a particular asset, it can still be sold to satisfy debts of another person.
Can you manage the risk associated with ‘management fees’?
In recent times, management fees and other inter-entity charges have been attracting a higher level of scrutiny from the ATO and OSR. One alarming aspect is the fact that genuine arrangements are being challenged by the revenue authorities.