Tax structuring is the way a business or investment is organised to improve tax efficiency and reduce tax liabilities. A well-considered structure can influence taxation, business growth, risk management, and future opportunities. Strategic tax structuring helps protect assets, manage risks, and enhance overall financial outcomes. It’s a key service provided by our experienced tax lawyers.

Effective corporate tax planning and risk management are essential for businesses to thrive while staying compliant with Australian tax law. At Macpherson Kelley, we help businesses navigate the complexities of tax law, defending our clients’ interests when tax disputes inevitably arise. In addition to dispute resolution, our services include tax risk management, strategic tax planning that aligns with your business goals, and optimises opportunities and safeguards against future tax issues.

While a tax lawyer and a tax attorney are the same thing, the relevant term depends on jurisdiction. In Australia, the terms tax lawyer or tax solicitor are used, while tax attorney is commonly used in the United States.

A tax lawyer, however, is not the same as a tax accountant. While tax lawyers and tax accountants can both provide advice on federal tax matters, a tax accountant is unable to provide advice on state tax matters and is not able to assist with implementing any of the advice they give. While a tax accountant can prepare financial statements and tax returns in addition to providing federal tax advice. In addition to not being able to prepare legal documents, advice from a tax accountant does not benefit from legal professional privilege.

The sale of a business involves numerous tax considerations, and a proactive strategy, including access to various concessions, or a restructure, can help reduce or minimise the tax payable on the sale proceeds. Macpherson Kelley’s tax lawyers are well-placed to discuss a number of strategies ahead of a sale to achieve best possible commercial outcome for their clients.

Depending on the size of the business, existing structure and jurisdiction, there are usually a number of ways a business structure can be reorganised to suit changing commercial objectives. This includes business expansion. With the right tax advice, expansion can sometimes be done with minimal tax and duty costs and without having to notify commercial third parties of the change. Strategies such as this should only be considered under the careful guidance of a tax lawyer to maintain compliance.

You might be surprised that your workforce can be taxed differently depending on whether you are considering federal or state tax costs. We can help you define whether an employee is in fact an employee or an independent contractor, as well as plan which category applies when you are determining your obligations.

There are a number of tax considerations for non-Australian citizens and non-tax residents prior to purchasing an investment property, and it’s important to seek out specialised tax advice prior to making a decision to proceed.

A tax lawyer can offer advice on the following considerations:

• Government preapprovals (FIRB)
• Land type: Vacant, residential or commercial
• Jurisdiction: State and/or Federal
• Structure: Trusts, individual or company
• Funding: Source of funds (how the money gets into the country).

Unfortunately, in Australia, there isn’t a presumption that what you receive from overseas is completely tax-free. Because of this, it is important to engage a tax lawyer so that you can understand what you need to collate to be able to answer future questions on where your income is sourced from.

There are a number of avenues available that offer certainty from the ATO that range from non-binding but urgent responses through to binding advice.

Ideally, from the outset, though practically it will be likely when a tax accountant has not been able to resolve a dispute quickly. A tax lawyer brings legal professional privilege and the ability to act as a circuit breaker (particularly when the relationship with the regulator breaks down), which can make a meaningful impact on both the penalties that might be applied and the standing of the client from the ATO’s perspective in the long term.