The Alert raises the ATO’s concerns about certain property development management agreements. These typical arrangements are used by taxpayers to segregate the development risks from the land-owning entity. TA 2026/1 is another instance of the ATO seeking to apply Part IVA which is a significant development that will have a broad impact across many property developers.

Characteristics of arrangements under review

Those property development arrangements under review, typically involve:

The ATO has concerns that the arrangements are contrived to artificially separate land ownership and development activities to gain a tax timing advantage, being:

• upfront deductions in Dev Co that would not be available to the landowner
• the repeated deferral of income recognition.

The ATO has a specific concern that the repeated utilisation of development losses can result in the economic group perpetually deferring paying tax on group profits and enabling wealth extraction.

The ATO has indicated that Part IVA anti-avoidance provisions may apply to these types of arrangements.

ATO actions

The ATO has confirmed that they will:

• publish a Practical Compliance Guideline outlining a risk framework
• engage with taxpayers that are undertaking these types of arrangements.

How SW can help

TA 2026/1 is another example of the ATO seeking to apply Part IVA to a once typical arrangement. This is a common structure used by taxpayers to segregate the development risks from the land-owning entity. Whilst we have been aware of rumblings in this area from the ATO, this is a significant development that will have a broad impact across many property developers.

SW will provide more detail once the draft Practical Compliance Guideline is released and will discuss TA 2026/1 with any impacted clients.

Our experts can assist with advising how TA 2026/1 affects your existing arrangements. We can also engage with the ATO to deal with potential disputes.

Reach out to your SW advisor for support from our team.

The post Developing trouble: ATO Alert on related party development management agreements appeared first on SW Accountants & Advisors.

We take the lead supporting tomorrow’s leaders with our Emerging Property Fund Series in Melbourne and Sydney.

This interactive five part series is facilitated by our own property funds specialists and industry experts, who will provide strategic insight into property funds management and key issues ranging from structuring, debt and equity through to legal and compliance.

Benefits of attending

• Learn how to protect your business and personal assets
• Different approaches to structuring your product
• Identifying methods to raise your debt and equity capital
• Market trends in the different asset classes
• Tax issues arising from different structure
• Effective exit strategies for your investors

Event details

Date: 5 sessions hosted on a monthly basis starting Wednesday, 23 October 2019 (Melbourne) / Thursday, 24 October 2019 (Sydney)
Time: 5:45pm – 8pm (canapes and refreshments provided)
Melbourne Venue: ShineWing Australia, L10, 530 Collins Street, Melbourne
Sydney Venue: ShineWing Australia, L8, 167 Macquarie Street, Sydney
Format: Interactive class-room style
Cost: $800 per person for the series or group booking for up to 3 people for $1,600 (prices exclude GST)

This includes:

• Five 2-hour sessions and networking opportunities with speakers and attendees
• Soft and hard copies of speaker presentations and handouts
• Automatic inclusion to our Emerging Property Funds Series, including invitations to future networking events

Session topics and dates 

Session 1: Fundamentals for Success, Property Funds – Wednesday, 23 October 2019 (Melbourne) / Thursday, 24 October 2019 (Sydney)

Speakers/Panelists: Howard Brenchley (APN Property Group), Paul Healy (Property Funds Association), Stuart Wilton (Centuria), Steven Bennett (Charter Hall) and Stephen O’Flynn (ShineWing Australia)

This introductory session will provide a brief overview of the series structure. You will hear first-hand from industry specialists the key lessons they’ve learnt, what challenged them the most, what worked, what didn’t and tips on building the right team.

Session 2: Fundamentals for Success, Personal and Business Issues – Wednesday, 27 November 2019 (Melbourne) / Thursday, 28 November 2019 (Sydney)

Please note, the Sydney session will be at 3pm – 5pm on this day.
Speakers/Panelists: Daren McDonald (ShineWing Australia) and Abi Chellapen (ShineWing Australia)
How do you separate your business fund from your personal assets? In this second session you will learn how to protect yourself, your funds and the appropriate ownership structures recommended to protect your investment and maximise your return.

Session 3: Fund Structuring – Wednesday 26 February 2020 (Melbourne) / Thursday, 27 February 2020 (Sydney)

Speakers/Panelists: David Southon (Aliro Group), Matthew Chun (Development & Property Consultant) and Simon Tucker (ShineWing Australia)
You may have a plan, but do you know which fund structure will give you the best competitive advantage? The industry experts will talk you through the fund structure matrix which covers local and international equity, fee structure and more.

Session 4: Debt and Equity – Wednesday, 25 March 2020 (Melbourne) / Thursday, 26 March 2020 (Sydney)

Speakers/Panelists: Warren Boothman (Open Corp), John Taylor (Crestone), Dan Freeman (Commonwealth Bank) and Matthew Schofield (ShineWing Australia)
This session covers everything you need to consider and what to avoid in modern-day financing. Identify both the traditional and alternative methods for obtaining funding, how to strike a deal with the banks and how best to raise your debt and equity.

Session 5: Legal, Regulatory and Compliance – Wednesday 22 April 2020 (Melbourne) / Thursday, 23 April 2020 (Sydney)

Speakers/Panelists: Legal advisor, Rene Muller (ShineWing Australia) and Rami Eltchelebi (ShineWing Australia)
Ensuring your i’s are dotted and t’s are crossed are important for the property funds management industry. Our experts will talk you through the documentation and practical application involved in your fund set-up and provide tips on avoiding common pit-falls to ensure you stay compliant.\

More information

Know someone interested in property fund management? You are welcome to direct any interested property professionals to this web page or to the ShineWing Australia Marketing team via marketing@sw-au.com.

The post Emerging Property Funds Series 2019/20 – Melbourne and Sydney appeared first on SW Accountants & Advisors.

We have created this interactive five-part series aimed at tomorrow’s leaders who are looking to learn more about the ‘business’ of property funds management, entrepreneurs looking to break into the sector and developers looking to establish a property funds management business.

We are also delighted to bring you highly regarded leading industry speakers from APN Property Group, Property Funds Association, Open Corp, Commonwealth Bank of Australia, Aliro Group and McMahon Clarke.

Benefits of attending

• Network with today and tomorrow’s leaders in the sector
• Learn what worked well and what didn’t work well from industry leaders
• Learn the pitfalls and traps industry veterans experienced during their journey
• Learn how to protect your personal and business assets
• Understand the market trends in the asset class
• Recognise methods to raise your debt and equity
• Understand what structure is best for a tax effective exit for your investors
• Identify strategies to raise your debt and equity
• Master your compliance obligations – learn how to obtain an AFSL and stay compliant

Event details

Date: 5 sessions hosted on a monthly basis starting Tuesday, 9 October 2018 (Melbourne) / Wednesday, 10 October 2018 (Sydney)
Time: 5.45pm – 8.00pm (canapes and refreshments provided)
Melbourne Venue: ShineWing Australia, Level 10, 530 Collins Street, Melbourne
Sydney Venue: ShineWing Australia, Level 8, 167 Macquarie Street, Sydney
Format: Interactive class-room style format where our expert guest speakers will share their insight and expertise on a key component of the property fund management process
Cost: $800 per person for the series or group booking for up to 3 people for $1,600 (prices exclude GST)

This includes:

• Five 2-hour sessions and networking opportunities with speakers and attendees
• Soft and hard copies of speaker presentations and handouts
• Automatic inclusion to our Emerging Property Funds Series, including invitations to future networking events

Session topics and dates 

Session 1: Fundamentals for Success, Property Funds – Tuesday, 9 October 2018 (Melbourne) / Wednesday, 10 October 2018 (Sydney)
Speakers/Panelists: Howard Brenchley (APN Property Group), Paul Healy (Property Funds Association), Rami Eltchelebi (ShineWing Australia), Hugh Thomson, Moelis Australia

This introductory session will provide a brief overview of the series structure. You will hear first-hand from industry specialists the key lessons they’ve learnt, what challenged them the most, what worked, what didn’t and tips on building the right team.

Session 2: Fundamentals for Success, Personal and Business Issues – Tuesday, 20 November 2018 (Melbourne) / Wednesday, 21 November 2018 (Sydney)
Speakers/Panelists: Daren McDonald (ShineWing Australia), Rosalind Myint (ShineWing Australia) and Abi Chellapen (ShineWing Australia)

How do you separate your business fund from your personal assets? In this second session you will learn how to protect yourself, your funds and the appropriate ownership structures recommended to protect your investment and maximise your return.

Session 3: Fund Structuring – Tuesday 19 February 2019 (Melbourne) / Wednesday, 20 February 2019 (Sydney)
Speakers/Panelists: David Southon (Aliro Group), Matthew Chun (Development & Property Consultant) and Simon Tucker (ShineWing Australia)

You may have a plan, but do you know which fund structure will give you the best competitive advantage? The industry experts will talk you through the fund structure matrix which covers local and international equity, fee structure and more.

Session 4: Debt and Equity – Tuesday, 19 March 2019 (Melbourne) / Wednesday, 20 March 2019 (Sydney)
Speakers/Panelists: Warren Boothman (Open Corp), John Blight (ShineWing Australia), Dan Freeman (Commonwealth Bank of Australia)

This session covers everything you need to consider and what to avoid in modern-day financing. Identify both the traditional and alternative methods for obtaining funding, how to strike a deal with the banks and how best to raise your debt and equity.

Session 5: Legal, Regulatory and Compliance – Tuesday 16 April 2019 (Melbourne) / Wednesday, 17 April 2019 (Sydney)
Speakers/Panelists: Brendan Ivers (McMahon Clarke) and Rami Eltchelebi (ShineWing Australia)

Ensuring your i’s are dotted and t’s are crossed are important for the property funds management industry. Our experts will talk you through the documentation and practical application involved in your fund set-up and provide tips on avoiding common pit-falls to ensure you stay compliant.

More information

Know someone interested in property fund management? You are welcome to direct any interested property professionals to this web page or to the ShineWing Australia Marketing team via marketing@sw-au.com.

The post Emerging Property Funds Series 2018/19 – Melbourne and Sydney appeared first on SW Accountants & Advisors.