Selling or closing your business
There are a number of tax matters you may need to deal with if you:
o stop operating your business
o sell the business
o wind up your company
o register a business but don’t actually start the business.
These may include:
o cancelling your ABN and other registrations
o lodging and paying any outstanding activity statements and instalment notices
o making GST adjustments on your final activity statement
o lodging final tax returns.
You should also check whether your state or territory government has any special requirements.
| Remember to keep your business records for at least five years after the end of the financial year in which you sell or close your business. |
GST
If you sell your business as a going concern, the sale is GST-free if:
o you supply everything necessary to continue operating the business to the buyer
o you carry on the business until the day it is sold
o the buyer is registered or required to be registered for GST
o you sell the business in return for a payment
o before the sale, you agree with the buyer in writing that the sale is of a going concern.
If you are registered for GST, you may need to include GST in the price of individual business assets you sell.
Capital gains tax
You may have to pay capital gains tax on business assets you sell, such as land or buildings, or intangible assets such as patents, licences or goodwill. However, you may be able to use the discount method and one or more of the tax concessions for small business to reduce your taxable gains.
Find out more
Introduction to capital gains tax
End of further information
Notifying us
You need to tell us if you have done any of the following:
o ceased trading altogether
o registered to operate a business but you’ve never traded
o sold or transferred ownership of your business changed business entity type because you are restructuring your business
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