| GST ? Going Concern |
| As you might know, the State Governments still charge a tax upon a tax, where there is stamp duty imposed upon the sale of the business.
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If the stamp duty is sizeable, the going concern exemption will assist in eliminating the GST and therefore imposing stamp duty on a lower price. It is not easy to qualify for the going concern exemption and legal costs in finding acceptable warranties can be substantial. However if the stamp duty reduction is expected to be greater than these costs then qualifying may be warranted for the purchaser.
The other reason for utilising the going concern exemption might be the purchaser?s inability to finance a significant GST debt.
Most accountants would say ?impossible? but see our article GST Funding for a very clever solution.
11th-December-2003 |
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