find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Real Estate & Projects Lawyer (6+ years PAE)
Category: Property Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Top tier firm with offices nationally · High profile clients
View details
Australian tax law may impede Deacons/Norton Rose merger

Australian tax law may impede Deacons/Norton Rose merger

The impending merger of Australian firm Deacons and the multinational Norton Rose has hit a snag.

The impending merger of Australian firm Deacons and the multinational Norton Rose has hit a snag. 

The merger faces several impediments that could prevent the full financial integration of the two organisations. 

The main issue is a glitch with Australian tax law that could result in a major tax liability if Deacons became an incorporated legal practice in order to limit its liability, which it must as a prerequisite for all organisations that join Norton Rose. 

The merger is the first full financial merger of an Australian law firm with one of the global giants of the profession. 

Norton Rose chief executive, Peter Martyr, warned that unless that tax problem was overcome, it could impede other potential mergers between Australian and global law firms.

The taxation hitch was revealed last week during the preparations to create a new global organisation with 1800 fee earners, 29 offices and annual turnover of $864 million. 

However, Deacons has said that this would not occur until a way was found of overcoming the risk that Deacons would incur a major capital gains tax liability if it incorporated. “We are not sharing profits, initially, globally,” Deacons chief executive, Don Boyd, said. 

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Australian tax law may impede Deacons/Norton Rose merger
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Unite
07:04
Professionals unite in support of marriage equality
The presidents of representative bodies for solicitors, barristers and doctors in NSW have come toge...
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
Scales of Justice, Victorian County Court, retiring judges
Aug 21 2017
Replacements named for retired Vic judges
Two new judicial officers have been appointed in the Victorian County Court, following the retire...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...