In recent times there has become a growing popularity in transacting at the shareholder/unitholder level as opposed to selling the assets themselves. This is becoming the preferred transaction structure for several reaons including not disturbing third party dealings or changing the profile of the trading entity (subject to a review of change of control clauses in key contracts and agreements).
We also outline the various pitfalls that can undermine this and other advantages if they are realised too late including the ability to carry forward tax losses.
The Tax and Duty Issues of Buying Shares or Units in an Entity over Assets
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