But what about distributions of the business’s intangible property and goodwill?
The Tax Court has held goodwill to be a vendible—and taxable—asset that can be sold with a professional practice 37 TC 39, 44 (1961)).
David also has significant experience of international commercial arbitration under arbitration claim relating to a construction project, and he has worked on a number of other major arbitrations relating to infrastructure and commercial projects.
In addition to contentious work, he has advised both investors and states in Europe, Asia, The Complete Retreats Liquidating Trust v Logue and others: acting for the respondent in a multi-million pound worldwide freezing injunction case arising out of a US insolvency action.
This apparent contradiction presents some questions to which there are no black-and-white answers.
Without such an agreement, client goodwill attributable to the personal characteristics of a shareholder isn’t a property right belonging to, or transferable by, a firm.
The freezing injunction was successfully set aside.
THE IRS SAYS DISTRIBUTIONS of customer-based intangibles to shareholders are taxable.
awyers advise CPAs to have employment and noncompete agreements in their accounting practices.
They recommend that all employees, including those who are shareholders, promise—in writing—not to take clients with them if they leave the firm.