With insolvency risk on the horizon for struggling small businesses, one registered liquidator has said that the discretionary trust tax changes are a tax planning issue, not an insolvency issue.
Business Reset restructuring practitioner and registered liquidator, Jarvis Archer (pictured), has told Accountants Daily that the businesses affected by discretionary trust tax changes need to be sufficiently profitable before the extra tax becomes material.
“Besides flushing out a few bucket companies that may have been used as a slush fund, [the changes look] more like a tax planning issue than an insolvency issue,” Archer said.
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