Hi all
I will give my opion on this from a senior bookkeepers ( 28yrs experience with some of that for a lawyer and an Accounting firm working in insolvancies and liquidations) point of view:
I would suggest a bank account not neccessary if the trust is inactive. Staple the $10 on the trust deed. Done. Until you start using it.
We have legislation in place for all things financial. BUT, this is all open to interpretation and it is the court/tribunials that determines the interpretation at the time. Hence we have what is commonly known as "Precedents", " case laws", "ATO Rulings" These are usually decided when some disputes a certain bodies interpretation ie: the ATO. You will find all sorts of Rulings on the ATO site in regards to the interpretation of the Income tax rules and regulations.
I would give the advice that any business income and all expense be seperated from private. I have cleaned up many a mess from business the intertwine the two. It is a nightmare... Then theres the problem of calculating any interest charges between private / investment...
Legally, you have to have any bank accounts opened in the name and I will stress the
full legal name of the entity. My hubby got a letter re: his SMSF, as his cheque book was not named correctly. He could have been fined. This is the same for any legal doc. Like an Offer made by a Trust the Offer should read " Mrs xx (full name as per the trust) ATF the xxx trust."
As for pennyk's post, regardless of law etc. A bank connot deposit a cheques made out for " xxx trust" into jo blows bank account even if he is the Trustee.
Further to banks and cheques etc.
Example: you have a cheque made out to " xxx business"
- If the chq is
not crossed printed or written " not negotiable" it can be signed over to another person and or business and it can be cashed over the counter.
- If it is crossed either printed or written " not negotiable " it has to be placed in a bank account, it usually cannot be cashed over the counter. You can have the writer of the chq write on it "open to cash" and the bank will cash it - especiall if it is wages, if you are the named person on the chq. They should ask for ID. They should not however cash one made out to a business. It has to be banked into an account in the name of the business.
I guess my lawn mower man got stuck with this at one stage he requested on his invoice that any cheques be made out in his name. This has stopped, so I guess he opened a business account...
I have come across some very slack tellers that will do what there not supposed to. I can tell you from experience that if you try to deposit a chq made out in another name into an account via the ATM it will be rejected.
I found this out when I tried to bank a cheque in my maiden name into our bank account in my married name. I had to go into the bank with my marriage certificate to bank it...
I hope this clarified the situation.........