This webinar considers the different types of debt and equity instruments that can be used to fund a company. It considers how tax and commercial considerations can influence a company’s capital mix and the suitability of different instruments.

This webinar will address the following topics:

• What is the difference between debt and equity for tax purposes? Why does this matter?
• What tax factors should be considered alongside the commercial factors when determining how a company is funded and the mix of debt and equity.
• What are “preference shares” and how are these taxed?
• What are “convertible notes” and how are these taxed? This consideration includes SAFEs (simple agreements for future equity)
• What is “sweat equity”? How is it taxed and why does it matter?
• How could the Foreign Investment Fund regime impact investors?
• What fishhooks commonly arise with restructuring, including debt parking and dividend stripping.

Upon satisfactory completion of this activity you will be able to:

• Have an improved understanding of how tax and commercial factors interact to influence a company’s capital structure;
• Provide improved advice to clients on the funding of companies and which instruments best suit their purpose;
• Have renewed awareness of the detrimental tax implications that can arise for certain restructuring arrangements

Suited to:

• Accountants and lawyers who commonly advise clients on the establishment of companies and the appropriate capital structure.
• Founders who are looking at growing their business’ capital
• Advisors involved with company capital raisings and restructures
• Others generally involved with business and with an interest in the balance between tax and commercial considerations with company funding

Total CPD Hours: 1.25 (1 hour 15 min)

PRESENTER:

Richard Muth, Senior Manager – Tax Advisory, Findex/Crowe
Richard Muth is an experienced taxation practitioner at Findex / Crowe having more than 10 years of experience with clients ranging from large multinational groups, Australasian groups, New Zealand based SMEs along with high net worth individuals.