It may be worth considering undertaking a corporate simplification process.
Our corporate simplification team will carry out a careful review of the corporate structure which identifies those entities that can be removed from the structure resulting in savings, improved corporate governance and transparency and a reduction of any potential directors’ exposure.
Benefits can be achieved through arranging one or more Members’ Voluntary Liquidations (MVL), essentially, the winding up of a solvent company. Through a MVL, the affairs of a solvent entity are formally wound up and the risk of ongoing personal liability of Directors in relation to the company’s taxation liabilities is extinguished. A MVL reduces the ongoing compliance costs of the group, resulting in a more effective corporate structure.
State revenue offices and the ATO information sharing
Redundant corporate entities can overcomplicate group structures and erode profits through unnecessary costs each year. A corporate simplification program is a careful review of the corporate structure which identifies those entities which can be removed from the structure resulting in savings, improved corporate governance and transparency and a reduction of any potential directors’ exposure.
