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  • No matter what the pressure, always think carefully about GST
  • A buyer has no obligation to top up for GST unless it is in the contract
  • Until otherwise decided “market value” should be assumed to mean the GST-inclusive value

It’s 6pm and everyone is tired and emotional after a heated and acrimonious mediation between brothers Patrick and George.

They’re arguing over a price for George’s shares in the family company that owns the old family farm in which Patrick, your client, owns two-thirds of the shares and his brother, George, one-third.

Patrick has operated the farm in his own business. George has never been paid a dividend and is threatening to bring an application to wind up the company, alleging oppressive conduct.

To close the gap between them, you suggest to Patrick that he sell George a nearby block of land that Patrick owns but that George has always wanted.

You know they’ll haggle over the price so suggest they accept a valuation from Harry Jones, a valuer you know both Patrick and George have dealt with and respect.

Everyone agrees, the deal is done, and the mediation agreement signed. GST is not mentioned.

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