Asset Protection- Up in Smoke!
The recent ruling on the matter Commissioner of Taxation v Bosanac  FCAFC 158 found that a property acquired solely under the name of Ms Bosanac, was in fact jointly owned with Mr Bosanac.
In this instance, the Australian Tax Office sought to recoup an outstanding judgement debt owed by Mr Bosanac for unpaid taxes.
Put simply, in this case, the asset protection strategies failed! We note that all is not lost when it comes to asset protection as the above case included a number of contributing factors.
It is insufficient just to ‘put’ an asset into a particular person’s name. In this case the Court reviewed how the asset was paid for and ultimately it was purchased with joint funds. Particular care needs to be taken when structuring your affairs.
Hall Chadwick strongly suggests asset protection measures are reviewed on a regular basis to ensure they stand up to the changing legal landscape. Please contact our office to discuss asset protection measures further.
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