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Winery sales and acquisitions anticipated – look out for hidden tax pitfalls on vineyards
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Constellation Wines’ recent announcement that it would be offloading surplus assets and last year’s announcement by Fosters of its restructure program, may be a sign of things to come, according to Peter Slegers, Tax Partner in Thomson Playford Cutlers’ Wine Group.
He said: “Such events are likely to impact on the value of wine assets across Australia. The current credit crisis is also expected to impact with some players needing to reduce high gearing by rationalising their operations and/or selling assets.”
“There are a number of hidden tax pitfalls associated with winery acquisitions, sales and restructures. If you are in the market to sell or purchase a winery, careful consideration needs to be given to the particular tax issues associated with vineyards to ensure that your tax position is optimised,” Slegers said.
Slegers will expand on tax issues relating to established vineyards on pre-capital gains tax land; issues for post-CGT land and other tax issues with a full explanation in The Australian & New Zealand Grapegrower & Winemaker Australian Wine Business pages, in the December 2008 issue.