From 1 July 2021 new rules applied to determine how vendors and purchasers allocate the purchase price to the various components of a transaction. Historically vendors and purchasers could take different tax positions and as long as there was justification for their position, then this could apply.

The new rules will radically change how the vendor and the purchaser perform these allocations and require symmetry. For example, they will apply to almost all transactions of commercial land and most business sales and force the vendor and the purchaser to use the same allocation.

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

• Advise what the rules are concerning purchase price allocation
• Advise on the opportunities for your clients when they undertake capital transactions
• Discuss your client’s objection rights when the other party to a transaction attempts to impose an inappropriate allocation.

Suited to: Partners and senior staff members who advise on the tax consequences of significant capital transactions

1.25 CPD hours

PRESENTER

Jarod Chisholm, Senior Partner, Findex/Crowe

Jarod is a senior partner in the Otago Tax Team for Findex/Crowe and has been a regular presenter for TEO, presenting on a wide range of topics in all areas of tax. Jarod’s background includes working in “Big 4” firms in Australia and New Zealand in the tax domain, and working for large corporates as a management accountant.

Jarod is recognised as an industry leader in the area of foreign investment and regularly assists other accountants/advisors with their clients. He provides commercial, practical advice in all areas of tax.