When the client sold their business they engaged us and we saved…
the investors an additional USD $2M in taxes on a $15M transaction.
Prior to working with us they were not aware that failure to properly structure a US business could result in Australian shareholders paying an effective tax rate of 63% or 15% when the sell a US business.
Our client was…
An Australian based digital marketing platform
We advised them on…
their US expansion and the subsequent sale of their US business.
We were hired because…
We were able to show the client:
- double tax can substantially reduce returns (regardless of foreign tax credits and income tax treaties). i.e. that double tax treaties do not apply in many circumstances.
- the structure of the business on formation and upon sale matters. The effective tax rates for investors swung between 0% and 63% depending on the choice of each investor – we gave the investors the information they needed to make the correct entity choice.
We were the lead tax advisor on the deal and outlined the optimal way to structure the sale so that the Australian based owners of the business extracted the most tax efficient after tax return.