Cheating child support with IP's

[purrspective]

I am a single mum with 3 kids, my ex is a sole trader and is earning atleast 100k but somehow using investments in property possible set up as trusts to escape without paying any child support. His taxable income is less than $15k

I don't understand what is possible, and would appreciate any comments in this area.

 

[alwayscurious]

touchy subject

Hi purrspective.

you sound frustrated. Understandably.

Perhaps in your search you may uncover and unlock some keys to enhancing your own personal wealth and you may find you will eventually be in the position where you do not need this fellow's support.

Hope that ends up being the case for you!

There are many ways to reduce your taxable income and increase your wealth.

I would start by reading such books as:
The natural history of the rich. (librarys)
Trust Magic, Tax battles (Dale Gatherum Goss)

And looking up tax reduction as a search in this forum.

Of course reducing tax is legal, and desirable for many people.

Reducing personal income tax through deductions is how many people continue to grow wealth.

Tax avoidance on the other hand is illegal.

If this fellow is understating income or doing cashies etc then this is cause for a court case.. yuk.

Once again, good luck.

 

[geoffw]

Purrspective

I'd imagine it would be quite easy to show that sort of income, quite legitimately, without even having to use trusts. If he had several fairly new properties, the depreciation could be quite large, reducing his taxable income substantially.

But if he has those properties, he has assets too- and I'm not sure where you, as the ex partner, would stand in respect to splitting assets which are held in trust. Splitting of assets is a very big area, and would probably involve a lot of legal work. I don't know your situation, and I don't know the law, so I'm at a double disadvantage. It may be worth while seeking professional advice.

 

[asy]

Oooh, I know the answer to this one!!!

Contact the Child Support Agency (CSA) and ask to speak with your case manager (This works MUCH better than just speaking with whomever answers).

Talk to them about the problem, AND ask for a "Request for Change of assessment" under Reason 8. You can read about it HERE .

THey will then do a manual assessment based on information you give them as well as information your ex gives them. This request, once enacted, also gives them the right to delve much deeper into his financial mystery box than a standard assessment would. They can access trust and company info via accountants, etc. Even if it takes them a year or two to unwind it, the backpay goes back to when you lodged the claim.

Something to remember when dealing with the CSA...

They are really nice people on the whole, they just deal with a whole stack of whining, yelling clients. If you keep yourself calm, and deal with them as if it's a joint problem and how can we solve it you'll get a lot further than if you ring them and yell and whine down the phone. (Not suggesting you would, but I have watched a few people do this, and it doesn't work).

hope this helps.

asy

 

[purrspective]

all good advice , thanks, your words have given me encouragement!

 

[abcdiamond]

I don't know if Child Support is dealy with by Centrelink, or linked in any way, but any IP losses created, are added back to your declared income, to increase your income for any Centrelink calculation purposes.

It surprised me at first.

eg: say Gross Income is $50k, with IP losses of $10K = $40k taxable income, which is correct to the ATO. ...BUT..

Centrelink add the $10k back, and say your income is $40k+$10k = $50k again


Maybe it should be the same in the child support section ?

 

[lizzie]

around 5 years ago when hubby was paying child support the csa used the gross pay calculation not net. so if gross pay from job was was $50k then regardless of after tax income, was calculated on $50k.

maybe they've changed the rules, but i wouldn't think so.

 

[Mr. Fabulous]

No Lizzie, they haven't. Saw a doco a few months back where one guy was being slugged quite a considerable amount because of how they calculate it. They calculate on gross income, and take it out of your after tax income. What the logic is behind that, I'll never understand....

Anyways purrspective, hope you are successful in getting some (or all) of the money for the children they rightly deserve.

Mark