Taxation

Our services are built around a clear and simple premise – to ensure taxpayers pay no more tax than they are legally obliged to pay. We know the best way through the labyrinth of tax laws, and can structure and complete transactions that are tax efficient and commercial.

Direct and to the point

In an area of law where it is easy to become diverted or lost, our tax lawyers are skilled at reaching the heart of problems quickly and resolving them.

Our experience cuts across a broad range of clients and projects, from privatisation of public utilities to assisting small business owners to minimise CGT liabilities, securing private ATO rulings, and managing elaborate international projects for major multinationals.

Depth of experience

Deacons’ team is distinguished by personnel who combine commercial experience with a comprehensive knowledge of tax law. Our team comprises a mix of experts who have joint accounting and legal qualifications, specialist accreditation, post graduate qualifications and service with the Australian Tax Office.

Our team is deeply engaged in key tax issues and our achievements are many. We have been involved in several important test cases and legal precedents, changes to the Tax Act and amendments to the GST Act. In addition, we have authored key legal materials in a number of specialist areas of tax law and are actively involved with numerous industry and professional bodies.

Commercial solutions

When legal hurdles present themselves that prevent our clients from accomplishing a business objective, we don’t simply say “not possible”. Instead we do everything to find a way over or around the hurdles so that the same business results, or better, can be achieved. Commercial and legally effective solutions ensures pragmatic and valuable resolutions to tax problems.

Handling disputes adroitly

From time to time disputes with tax authorities are unavoidable. When this occurs we have the knowledge and experience to contain the problem, respond decisively so that our clients are placed in the strongest possible position.

Expertise within expertise

Australian tax law is a massive and complex area of knowledge. While it is virtually impossible for any individual to acquire and maintain mastery across the entire field, collectively we can. Our team includes highly focused lawyers with expertise in areas such as GST, corporate tax, CGT, stamp duty, taxation of trusts and international tax. This ensures clients can obtain detailed advice on every facet of tax law, within a framework that looks at their complete tax position.

Doing business beyond Australia

The team is recognised for their ability to deliver comprehensive and commercial solutions whether in Australia or overseas. Our Australian and Asian offices regularly work together. In Australia, we represent both offshore companies on a wide range of transactions, including establishing operations in Australia, setting up joint ventures, acquiring companies and properties, and listing on the Australian Stock Exchange.

In Asia, we regularly represent Australian and other multinational companies advising them on how to develop market entry strategies, establishing joint ventures, acquiring companies and properties, and licensing technology.

Our services

Our national tax team includes lawyers experienced in all transactions and litigation aspects of taxation and revenue law including:

• international tax
• income tax
• corporate tax
• capital gains tax
• fringe benefits tax
• stamp duty
• goods and services tax
• indirect taxes and revenue imposts
• withholding taxes
• superannuation
• taxation of trusts

• Legal update: Legislation passed to impose duty on Victorian leases

  On 25 June 2009, the controversial Duties Amendment Bill 2008 (Bill) was passed by the Upper House of the Victorian Parliament with minimal amendments. The Bill, now awaiting royal assent, gives effect to the Victorian Government’s 2008 media release announcing that it would close a loophole which allowed the use of complex long-term lease arrangements to escape stamp duty liability. The changes, which apply retrospectively from 21 November 2008, are however not limited to long-term leases. Subject to how the changes are administered by the State Revenue Office, products offered by property developers may be affected and a wide range of Victorian tenants may be affected.

  30 Jun 09 Andrew Spalding

• Deacons in the press: Stamp duty: Big traps laid in new legislation (26/06/2009)

  Draft legislation released last week by the NSW Government revealed major changes to land-rich duty that could significantly impact transactions and potentially impose duty on share transfers involving companies with relatively modest landholdings, reports The New Lawyer.

  26 Jun 09 Peter Norman

• Legal update: NSW announces major land rich duty changes

  On 17 June 2009, the NSW Government released draft legislation giving effect to the major changes to land rich duty announced in the NSW mini-budget of 11 November 2008. The changes, which are contained in the State Revenue Legislation Further Amendment Bill 2009 (Bill) and which will mostly apply from 1 July 2009, may significantly impact both existing and new transactions, including potentially imposing duty on dealings in entities with modest land holdings.

  23 Jun 09 Peter Norman, Andrew Spalding

• Legal update: NSW announces major mortgage duty changes

  On 17 June 2009, the NSW Government announced major changes to mortgage duty. The changes, which apply from 1 July 2009, will have significant ramifications for both existing secured facilities (where further advances or new security are taken on or after 1 July 2009) and new secured facilities put in place on or after 1 July 2009. In addition, the proposed introduction of general anti-avoidance provisions to an area historically ruled by form alone will create added difficulties and uncertainty for financiers, borrowers and advisers alike.

  22 Jun 09 Peter Norman, Andrew Spalding

• Legal update: Capital Account Election for Managed Investment Trusts

  A welcome announcement in the May 2009 Federal Budget was to provide deemed capital account treatment for gains and losses made on disposal of investment assets by Australian managed investment trusts (MIT). The announcement goes some way to alleviating concern as to the appropriate taxation treatment on disposal of investment assets by funds and whether gains or losses should be treated on capital or revenue account.

  11 Jun 09 Fadi Khoury, Peter Norman

• Newsletter: EBIT - June 2009

  Welcome to the June issue of EBIT (Emerging Business, Innovation and Tax). Deacons endeavours to continuously improve the services we provide and we welcome your ongoing participation in EBIT. If you have any comments you would like to make on this issue or the content or format of future issues, please contact Greg Hipwell, Editor.

  10 Jun 09 David Coombes, Greg Hipwell, David Stavropoulos , Christine Hutchinson, Jessica Rowe and Anna Wilson

• Legal update: R & D changes in 2009 Budget

  Changes to the research and development tax incentive system will see small companies receive a tax refund of 45% of their R & D spending when they file their tax return.

  28 May 09 Bernard O'Shea, David Stavropoulos , Anna Wilson

• Legal update: Employee share and option plans: Dead in the water?

  On 12 May 2009, the Treasurer, as part of the Federal Budget, announced some major changes to the rules governing the taxation of shares and options acquired under employee share and option plans (ESOP). These changes, if passed into law, will apply immediately and will impact most employees who participate in an ESOP. Employers will need to reconsider the viability of their ESOPs and may need to devise different ways to incentivise their employees as they watch the tax benefits that used to exist sink beneath the waves.

  22 May 09 Stephanie Barnes, Andrew Spalding , and Christine Hutchinson

• Legal Update: The end of golden handshakes?

  On Tuesday 5 May 2009, the Federal Government released an exposure draft of its proposed amendments to the Corporations Act 2001 (Cth) to lower the threshold at which companies require shareholder approval for termination payments. The new cap will apply to a broader category of individuals and cover more kinds of remuneration payments than is presently the case. Importantly, the proposal is that the new laws will not (on commencement) apply retrospectively to existing contracts that have already been settled.

  11 May 09 Murray Procter, Sally Woodward

• Deacons in the press: Tax cut offered for fast fit-outs

  Commercial property landlords and tenants could get a handout from the Federal Government in the form of a bonus 30 per cent tax deduction for new office fitouts — but they will need to be quick, reports The West Australian, 26 April 2009.

  27 Apr 09 David Stavropoulos