Hi all,
I tried searching the forum and haven't found what I was looking for so please forgive me if it's been asked before.
I have a company that has been operating for a few years. For previous years it hasn't been earning much. Lately things are looking positive and I am likely to get a big chunk of profit from a few property deals. (can sell one deal for about 300k gain. property is held under a different one-off holding company)
I am thinking about spreading the profit over this (coming july) financial year and the next financial year(2015) so that I can have 2 year tax return financials for future loan application. (does this work?) I plan to invoice the one off company $150k this financial year then sell the deal after july and release all the $300k profit so I have $150k each financial year. I am aware I will need to pay GST by invoicing such a big amount
My questions are:
1.Does this make sense? or am i being silly?
2.would organising the profit this way make my future loan application look better(having 2 year tax return)?
3.Does it matter whether i receive the profit through director's fee or dividend(eg i'd get 70k through director fee and the other bit through dividend)?
4.when bank looks at tax returns do they check the company tax return as well? Any issues i may have with this?
thank you so much for reading this
I really appreciate it
mm
I tried searching the forum and haven't found what I was looking for so please forgive me if it's been asked before.
I have a company that has been operating for a few years. For previous years it hasn't been earning much. Lately things are looking positive and I am likely to get a big chunk of profit from a few property deals. (can sell one deal for about 300k gain. property is held under a different one-off holding company)
I am thinking about spreading the profit over this (coming july) financial year and the next financial year(2015) so that I can have 2 year tax return financials for future loan application. (does this work?) I plan to invoice the one off company $150k this financial year then sell the deal after july and release all the $300k profit so I have $150k each financial year. I am aware I will need to pay GST by invoicing such a big amount
My questions are:
1.Does this make sense? or am i being silly?
2.would organising the profit this way make my future loan application look better(having 2 year tax return)?
3.Does it matter whether i receive the profit through director's fee or dividend(eg i'd get 70k through director fee and the other bit through dividend)?
4.when bank looks at tax returns do they check the company tax return as well? Any issues i may have with this?
thank you so much for reading this
I really appreciate it
mm