Business & Tax Law
Business is tough and there are a myriad of rules, regulations, and reporting requirements that owners and directors must understand to meet their legal obligations. Whether you are starting, growing, or closing a business, or struggling with a legal problem, we can help. We are experienced commercial and business lawyers with a comprehensive understanding of the corporate environment and the legal challenges that our business clients regularly face. We can assist with:
- Business start-ups, business structuring, and restructuring
- Tax law and tax advice / superannuation / insurance
- Buying and selling a business including franchises
- Corporate governance and advice for company directors
- Partnership agreements / shareholder agreements
- Debt recovery and seizure / insolvency
- Employment and workplace law
- Contracts / breach of contract
- Commercial litigation
Business law
Business law governs the formation of companies, the legality of company mergers and acquisitions, and shareholder rights. In addition, business law encompasses most legal issues that a business owner might encounter, from leasing commercial property to taxation and superannuation, contract disputes, debt recovery, intellectual property, and terms of trade.
Taxation
Tax law is a distinct area of specialisation, requiring extensive experience and understanding of Australia’s complex tax legislation. The basis of Australian tax law is that no individual or business is obliged to pay more tax than allowed by the law. A tax lawyer will work with a business owner to identify the most efficient company structure and organisation to minimise tax liabilities, while ensuring that the company always meets its minimal legal obligations.
A company needs to take a tax debt seriously, especially as the Australian Taxation Office (ATO) adds interest to all outstanding debts. The ATO has extensive powers of enforcement, but they will always try to work with a business which has a tax debt, unless the business refuses to engage.
Business owners can engage directly with the ATO to negotiate a payment plan or other solution. Alternatively, a business owner can engage a solicitor who has extensive experience negotiating outcomes with the ATO, who can ensure that the business is given the most favourable terms and the longest possible breathing room. In either case, it is vital to engage with the ATO at an early point, especially because this will prevent the ATO from reporting a tax debt to a registered credit reporting bureau.
We have advised and assisted many clients with their taxation issues, including defending claims about late or non-payment of tax and superannuation, and managing disputes with the ATO.
Superannuation
One area where businesses need to be careful is in relation to their superannuation obligations. A business must pay superannuation for its workers to provide for their retirement. All workers have a “superannuation guarantee”, a minimum percentage (currently 10.5%) of base earnings which is invested for their retirement on their behalf. This applies to full-time, part-time, and casual workers.
Employers are legally required to keep accurate superannuation records. An employer who fails to pay the correct amount of super is liable to make up the shortfall, pay interest on the amount, as well as an administration fee. If the employer does not comply with the ATO’s directives, the company directors may be personally liable for significant fines or even imprisonment.
Buying or selling a business
The sale or purchase of a business is often a high-stake transaction, where the terms of the sale can have far-reaching financial consequences. One of the most common scenarios is for the purchaser of a business interest to already be a co-owner. In such cases, it is beneficial if there is a buy/sell agreement in place, as this will dictate how changes can be made to ownership of the business. For instance, an agreement may require that the remaining owner pay a percentage of the value in an original lump sum and the balance in regular repayments. Ensuring that your buy/sell agreement is realistic, flexible, and enforceable is a critical risk management step for anyone who co-owns a business.
Debt recovery
As most business owners know, making money is one thing, ensuring that you are paid is quite another. Particularly in small businesses, financial viability can be heavily dependent upon whether accounts are paid promptly. A business can often recoup an outstanding account with a friendly reminder. When informal methods fail to work, the next step may be to outsource the debt recovery to a solicitor, who will issue a letter of demand or a statutory demand. This approach is often successful when a polite approach has not worked.
If your businesses’ terms of trade have expired, or it appears that a client is having difficulty making payment, we can advise on your legal rights and any available remedies to recover and enforce payment. We have a track-record for the efficient and economical recovery of debts and for enforcing compliance with contractual terms.
Bankruptcy and insolvency
If you are struggling financially and have been threatened with bankruptcy or your company is facing insolvency, we can help. There may be options available to avoid bankruptcy or insolvency proceedings and we can provide advice before proceedings are commenced. If legal proceedings have already issued against you or your company, we can assist by negotiating pre-trial settlements (for example by deferral of payment, or repayment by instalments) or represent you in defended proceedings.
If you need assistance, contact [email protected] or call 02 9269 0662 for expert legal advice.