Governance and tax optimisation, are always a work in progress and never a completed project. The re-structuring, transfer and succession issues within family businesses give rise to various corporate governance and tax issues that could lead to the failure of a business if not tackled on time. As a result, in this increasingly competitive economic environment, family-owned businesses continuously feel the need for professional guidance on both the corporate governance challenges they face as well as the tax optimisation opportunities that may be available.

The Challenges

Due to the nature of family-owned businesses, devising a family charter that protects the interests of all family members and that is agreed to by all parties concerned, can be a sensitive and tricky topic. The negotiation of exit and entry routes of family members within family-owned businesses requires a comprehensive plan that ensures a tax-efficient and fair reorganisation. These corporate governance issues need to be resolved in light of the prospect of the survival, growth and continued success of the family-owned business bringing the succession tax planning issue into perspective.

Our Experience

At KPMG, over the years, we have successfully concluded various family plans for big operators in different industries such as the manufacturing and real estate industries and other well-diversified groups. In addition to offering valuable insights into some of the corporate governance and tax issues facing entities within the family sector, as independent professionals we strive to:

  • Resolve family corporate governance issues across different generations;
  • Devise a family business structure that allows for the family-owned businesses to keep running efficiently and successfully;
  • Maximise the economic and emotional value of transactions and restructuring within family-owned businesses;
  • Conclude successful family plans that fit the needs and fair expectations of all family members involved;
  • Liaise with our clients to plan ahead and devise a long-term strategy that minimizes the tax effect of succession over family generations;
  • Provide insight and restructuring plans in a tax-efficient manner through an experienced tax team;
  • Highlight the various tax exemptions and reliefs available and how they may be availed of; and
  • Identify tax optimisation opportunities and assist in their implementation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.