1. The vendor must supply all of the things necessary for the continued operation of an enterprise.
2. The vendor must carry on the enterprise until the day of supply.
3. The supply must be for consideration.
4. The purchaser must be registered or required to be registered for GST.
5. The vendor and the purchaser must agree in writing that the exemption is to be claimed.
It depends, you must provide a Section 52 to the purchaser if the total price of the small business is $ 450,000.00 or less. The goodwill, plant, equipment, and fittings of the business are used to calculate the total price. Keep in my mind the stock and intellectual property of the business do not form part of this calculation.
However, one exception to this S 52 statement is that, If your business holds an active licence or permit under the Liquor Control Reform Act 1998 you do not have to provide a Section 52.
This makes bars and restaurants with active liquor licences exempt from providing one.
However, we encourage client to seek legal advice as these areas are highly sensitive and requires to be professionally handled by an experienced lawyer.
The Section 52 must include all content in the Form 2 document listed in Schedule 1 of the Estate Agents (General, Accounts, and Audit) Regulations 2018, including:
All sections of this form must be complete and accurate. The vendor’s Business Operating Report is particularity important as it must show information for the current accounting period, information about the previous 2 accounting periods (unless the business hasn’t existed that long), and be certified by a practising accountant.