find the latest legal job
Part Time Risk & Compliance Officer
Category: Other | Location: Brisbane QLD 4000
· Brisbane City · Flexible Part Time Hours
View details
Infrastructure Lawyer/SA
Category: Construction Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Global elite law firm · Dedicated Infrastructure team
View details
Property Lawyer
Category: Property Law | Location: All Melbourne VIC
· 12 Month Contract · Diverse Work
View details
Family Lawyer
Category: Family Law | Location: Eastern Suburbs Melbourne VIC
· Boutique Firm · Great Reputation
View details
Infrastructure Lawyers
Category: Construction Law | Location: All Perth WA
· We'd be particularly interested to hear from you if you were a lawyer who knows your way around the infrastructure and energy sectors.
View details
Private equity exits likely to follow tax ruling

Private equity exits likely to follow tax ruling

Tax experts are predicting a wave of private equity exits in the wake of an imminent ruling on private equity structuring by the Australian Taxation Office (ATO).The ruling, which was initially…

Tax experts are predicting a wave of private equity exits in the wake of an imminent ruling on private equity structuring by the Australian Taxation Office (ATO).

The ruling, which was initially due for release on 5 May, is now expected to be handed down on 26 May.

Middletons' tax partner Philip Diviny said he believes many private equity owners are currently sitting on assets which they would probably rather sell, but are holding off on due to the current uncertainty surrounding tax.

"The TPG/Myer float may have lit the spark when the Australian Taxation Office failed in its attempt to claim tax on the transaction," said Diviny.

"The ATO was pursuing two overseas companies for approximately $452 million: TPG Newbridge Myer and Luxembourg-based NB Queen SARL."

Middletons' M&A partner John Mann said private equity had, prior to the economic downturn, been an active segment of the market.

"Uncertainty has a paralysing impact on markets and we will no doubt see activity pick up following the tax ruling," said Mann.

"Private equity has proven to be a successful business model both in good times and bad, delivering increased shareholder value. No doubt we will see a number of private equity exits as the market picks up and new opportunities are considered."

Both Diviny and Mann agree that a ruling that results in tax uncertainty will see private equity owners "lining up at the exit doors".

"There has been a steady trend in the out performance of companies exited by private equity as opposed to other models," said Mann. "Indeed Australia's private equity sector is less advanced than both its UK and US counterparts, so we can expect to see a growth in the proportion of mergers and acquisitions activity being linked to private equity activity in the years to come."

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

Private equity exits likely to follow tax ruling
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Nov 17 2017
It's time for politicians to commit to eradicating domestic violence
The national shame of domestic violence cannot be left unaddressed, writes Christine Smyth. ...
Nov 16 2017
From lawyer in law firm to senior governance professional
Promoted by Governance Institute of Australia As a law graduate, Kate Griffiths never imagined...
marriage equality
Nov 16 2017
Legislation the next hurdle for marriage equality
Lawyers have underscored the importance of ensuring same-sex marriage legislation does not limit ant...
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'...
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...
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 & ...