Case Study 2

What situation made the client reach out to you? 

  • Client had been in contact with a number of accountants regarding a capital gains tax issue that was going to result in a large tax bill.  They approached us to look at the transaction to ensure that the advice they had been provided was correct and considered all of the capital gains tax concessions available.

What trouble or pain was the client dealing with?

  • A large tax bill connected to the sale of a business.

How did the client feel about the situation?

  • The client was frustrated that the transaction was going to result in a large tax bill and he wasn’t convinced from discussions with his prior accountant (and meetings with other accountants) that they had properly considered the tax implications attached to the transaction.

How did you begin working for the client?

  • The client approached us for the third opinion on this transaction and as a result of this advice moved their accounting to MTA Accounting and has since referred other family and friends who are now also clients of MTA Accounting.

What assessments and/or tools were used to provide solutions?

  • A step by step assessment of the transaction and application of the tax legislation was undertaken by the firm which involved input from three senior accountants at MTA Accounting.
  • This assessment confirmed that the client was able to access small business capital gains tax concessions that significantly reduced his capital gains tax bill.

What was the client’s initial reaction to the early results?

  • The client was thrilled.  He managed to retain a much larger share of the income he received from the partial sale of his business

How did the use of the assessment help this client’s business improve operationally and/or financially?

  • This in turn allowed his family to achieve their personal financial goals and enjoy the rewards of their years of hard work.

What’s next for this client in the turnaround process?

  • We have since been engaged by the client to do a thorough review of his other entities (including a complex structure of trusts and companies).  As part of this process we had to look at many legacy items that had been inherited by the taxpayer after purchasing multiple companies from his father.