The property

An 170m2 office complex, built 2005, ~11½km from Perth CBD

The situation

An insurance broker, with a complex ownership structure, is the owner/sole occupier of its own office building. Through various corporate cross-holdings, Entity A owned the building, and Entity B owned the fitout and furnishings. The management business (Entity C) required two separate Tax Depreciation Schedules for each of the respective related asset owners, for their individual end-of-year tax returns.

Where we helped

Asset Reports was engaged directly by the insurance broker’s Entity C to inspect the property, take an inventory of the fit-out and furniture, and prepare two Tax Depreciation Schedules – one for the building and a second for the fitout and furnishings.

The real kicker

While the scope of Asset Reports’ work was slightly expanded compared to most Tax Depreciation Schedules we normally prepare, the value realised by our client was substantial. Splitting the Tax Schedules for the two entities optimised the client Group’s overall tax position, and enabled the optimum, net tax effect.

Furthermore, though we prepared two standalone Tax Depreciation Schedules, with the necessary calculations and tax tables carefully applied to both asset owners, the client didn’t incur any additional fees beyond the first Tax Depreciation Schedule, thereby realising a higher value multiple over our already very competitive, single fee.

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