We’ve been researching the circumstances of a once highly successful liquor manufacturing business, with a huge client base – domestically as well as around the world.
This business had grown and prospered for more than 50 years until this year. This hard work was all undone overnight when it was wound-up by an aggressive ATO.
Our research indicates some or all of the situation could have been avoided with more thoughtful structuring and asset protection arrangements.
The business was wound up, more or less overnight, by the ATO.
50 years of hard work bought undone overnight.
Business Asset Protection, applying the research this case has uncovered, is offering free business structuring health checks for companies – particularly in high tax sectors such as liquor, with slow paying wholesale customers or those experiencing growing inventory levels.
To arrange a free structuring health check call now on 1300-327123 or complete the below form.
It might seem like a question with an obvious answer, but what is a fixture? What is a fitting? And, what is equipment?
We are presently working on a project where our client is claiming title to commercial equipment. The equipment was placed in a function space which features elsewhere in our blogs – current projects & past projects. The land has recently been sold by the mortgagee in possession.
In the last couple of days these questions have arisen:
- what is a fixture?
- who can have title to it?
- can a person abandone title to goods? and,
- what is required to secure title to the fixture/s?
In this instance the equipment is commercial kitchen equipment.
The purchaser from the mortgagee seems to be suggesting in correspondence that portable equipment is nevertheless a fixture.
The implied threat is to abandone the purchase from the mortgagee unless the secured lender, who owns the equipment, waives their title?
The answer to these questions is this.
Typically a fixture is a chattel which is annexed to land in such a way that it becomes ‘part of’ the land and ceases to be the personal property of the person who attached it.
Have a think about your workspace. What are some chattels and what are fixtures and what might be fittings.
Take the kitchen sink for instance. It’s probably quite impractical to remove that. It would perhaps rip off the tiles in the process. But what about for instance shelving. Sure the shelves are screwed into the wall, and so it might be argued that they become part of the land. But do they cease to be personal property? And why were the shelves put there in the first instance?
These are all relevant questions in considering what are fixtures and what aren’t.
We may discuss fixtures in further detail as this dispute is worked through.
If you have any thoughts or comments or questions, please feel free to direct message me at: email@example.com – thank you.
14 August 2018