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 are SAFEs? How are these taxed and what tax concerns exist for these?
- 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:
- better understand 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
- discuss with renewed awareness the detrimental tax implications that can arise for certain restructuring arrangements
- Accountants and lawyers that 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)
Richard Muth, Senior Manager – Tax Advisory, Findex/Crowe
Richard 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.
21 November 2023
10:00 am - 11:15 am