Teams, valuation, and tax traps

Appearing in In The Black, October 2019

 

The Australian Tax Pitfalls of Administering an Estate with International Connections

By Ian Raspin

BNR Partners, 80 pages, $25

Estate Tax PitfallsNearly half of all Australians were either born overseas or had at least one parent born overseas. The figure is increasing, with growing numbers coming from Asian countries. For finance professionals working in the estate administration area this diversity raises a host of tax issues, especially as legal liabilities can pass to the executor.

Raspin, a senior CPA and director of the specialist firm BNR Partners, knows everything there is to know about this area, and in this short, useful book he writes with the clarity of the well-organised expert. He explains residency definitions and the basics of estate taxation, and then moves onto issues regarding foreign-based assets (with a separate chapter on real estate, where some special rules apply). There can be problems when the deceased person had assets or property that was generating income which was not declared in Australia. Raspin, using a detailed case study, explains that the best course is to negotiate a settlement with the ATO. He also looks at CGT issues and includes a useful appendix on double-taxation agreements.

This book is best read with two other Raspin books, Taxation of Deceased Estates and CGT on a Deceased’s Residence. Both are currently being updated.

 

Business Valuation: Theory and Practice

By Marco Fazzini

Macmillan, 227 pages

Business valuation lies at the heart of financial management but discussion often turns into a dry analysis of calculation methods. Fazzini, an academic in the valuation area, does not deny the importance of the formal processes but he argues that a true picture requires a broad consideration of the firm as well. For this he suggests an Integrated Valuation Approach, based on methods recommended by the International Valuation Standards Council, to give integrity and consistency to objective components. Fazzini emphasises the importance of looking at the firm’s financial strategy, its growth outlook, and position within its industry.Business Valuation

He does a solid job of explaining how to move between theoretical concepts and practical applications, examining the income-based method, the market-based approach, and the cost approach along the way. There is a chapter dealing with the tricky issues of valuation of intangible assets and a good discussion of when and how to apply adjustments in valuations (including control premiums and lack-of-control discounts).

The book is designed as a textbook but it would also be useful for financial managers who need to brush up on their valuation skills, as well as those working in a company looking to expand globally or considering an IPO.

 

Turning People into Teams: Rituals and Routines That Redesign How We Work 

By David Sherwin and Mary Sherwin

Penguin, 192 pages

There is often an assumption that a group of talented individuals will automatically produce effective team outcomes. Not so, say the Sherwins, who specialise in team training and development. In a good team the whole is greater than the sum of the parts, but getting it to work takes effort and organisation. They suggest a number of rituals – 27 in all – to get the machine humming. It starts by formally identifying the skills each person brings to the table and their area of responsibility. There also needs to be an understanding about the problem to be solved, the available tools, and relevant metrics. Using a timer to ensure that no member dominates discussion can be useful.

But the real value of the book lies in the diagrams and flow-charts that can be used to formalise communication and consensus-building. (The book links to a website from which the templates can be downloaded.) For the team facilitator, this is a way to keep all members moving in the same direction, with feedback mechanisms, progress reports, and conclusion reviews built into the process. The book adds up to a useful package, with an emphasis on getting the job done in the most co-operative and efficient way possible.

Turning People Into Teams

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