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Taxation Case Study

Taxation Case Study

Mark and Steve decide to establish their own property development business. It is to have two separate divisions:

Development business: A development arm to conduct the building and development business. It employs various trades, engineers, consultants, architects and themselves in the business. This development business involves considerable potential rewards, although the risk of downside on a year-by-year and project-by-project basis is significant. Due to the tightening insurance market, no professional indemnity insurance is available for these activities. They will commence business on a low overhead cost basis.

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