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 | | From: | Deano | | Subject: | Ways to reduce your tax in OZ | | Date: | Sun, 16 Jan 2005 11:46:03 +1100 |
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 | Ive heard that if your self-employed in Australia, you can pay less tax if
you open up a trust account & trade out of that.
I was explained something like this to me
Open a trust management company to manage your trust fund. You then trade
under the name of the fund fund. the fund has trusties & a trusties
companies which all take an equal share of the profits the trust fund makes.
there for some how reducing your tax.
I was wondering if this is true? and if so how would one go about looking in
to it as ive asked a few accountants and there not to shore.
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| | From: | Bob Williams | | Subject: | Re: Ways to reduce your tax in OZ | | Date: | Sun, 16 Jan 2005 01:11:05 GMT |
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| On Sun, 16 Jan 2005 11:46:03 +1100, "Deano"
wrote:
>Ive heard that if your self-employed in Australia, you can pay less tax if
>you open up a trust account & trade out of that.
>
>I was explained something like this to me
>
>Open a trust management company to manage your trust fund. You then trade
>under the name of the fund fund. the fund has trusties & a trusties
>companies which all take an equal share of the profits the trust fund makes.
>there for some how reducing your tax.
>
>I was wondering if this is true? and if so how would one go about looking in
>to it as ive asked a few accountants and there not to shore.
>
>
Deano
You may be better off for many reasons by using a trust - taxes, asset
protection and succession planning. But it might also cost you more
than you will save to set up and run one.
Go to a public accountant (CPA, Chartered or NIA) who is also a
registered tax agent, spend $200 and get some really good advice for
your personal circumstances.
Bob Williams
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| | From: | Brad Thomas | | Subject: | Re: Ways to reduce your tax in OZ | | Date: | Mon, 17 Jan 2005 00:55:29 GMT |
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| Deano
We did that for our business - we bought a shelf company for like $900,
and it acts as the trustee for two family trusts which trade as a business name.
Any profit gets split between the two family trusts, so my personal tax
is based on what the family trust earns (since I'm a beneficiary).
The other thing about having a proprietary limited company is that the company
is responsible for all debts - the directors aren't (or that's how I remember it
being set up.) The down side of course is that you need to put in annual returns
to ASIC - and there's a whole bunch of other stuff that you need to do to be
compliant with the law.
The "company" doesn't pay tax, since it doesn't trade - the business still pays
tax at the 36% rate, but there are lots of other advantages in doing it this way.
I'd second Bob's suggestion and spend the money upfront for an hour
with a solicitor - that would be money well spent.
Brad
Bob Williams wrote:
> On Sun, 16 Jan 2005 11:46:03 +1100, "Deano"
> wrote:
>
>
>>Ive heard that if your self-employed in Australia, you can pay less tax if
>>you open up a trust account & trade out of that.
>>
>>I was explained something like this to me
>>
>>Open a trust management company to manage your trust fund. You then trade
>>under the name of the fund fund. the fund has trusties & a trusties
>>companies which all take an equal share of the profits the trust fund makes.
>>there for some how reducing your tax.
>>
>>I was wondering if this is true? and if so how would one go about looking in
>>to it as ive asked a few accountants and there not to shore.
>>
>>
>
> Deano
>
> You may be better off for many reasons by using a trust - taxes, asset
> protection and succession planning. But it might also cost you more
> than you will save to set up and run one.
>
> Go to a public accountant (CPA, Chartered or NIA) who is also a
> registered tax agent, spend $200 and get some really good advice for
> your personal circumstances.
>
> Bob Williams
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