http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR20103/NAT/ATO'&PiT=99991231235958
In planning for EOFY... just trying to sort out what to do with some suplus income. What are the experts opinions on using bucket companies after TR2010/3?
Basically trying to find a way to:
a) pay 30% max tax on income
b) have access to the funds wihtout being stuck in co
c) doing everything legit without penalty / future problems
d) keep the paper / money trail as simple as possible to reduce acct fees
Are there ways we can still do this using bucket companies? Eg can we pay the distribution to the company, and then loan (at commerical rates) the capital to another entitiy for investment purposes and:
a) report the interest as income to the bucket co
b) claim a deduction in other entity (if used for $$$ income generating purposes)
Or would you recommend just making the most of other family members 37% tax bracket and distributing some paper income to them without all the extra stuff around? Are their other options I am overlooking?
Thanks
Of course I will seek my own advice from my acct.... just trying to get a bit more informed about possibilities and some of the issues before we talk about it.
In planning for EOFY... just trying to sort out what to do with some suplus income. What are the experts opinions on using bucket companies after TR2010/3?
Basically trying to find a way to:
a) pay 30% max tax on income
b) have access to the funds wihtout being stuck in co
c) doing everything legit without penalty / future problems
d) keep the paper / money trail as simple as possible to reduce acct fees
Are there ways we can still do this using bucket companies? Eg can we pay the distribution to the company, and then loan (at commerical rates) the capital to another entitiy for investment purposes and:
a) report the interest as income to the bucket co
b) claim a deduction in other entity (if used for $$$ income generating purposes)
Or would you recommend just making the most of other family members 37% tax bracket and distributing some paper income to them without all the extra stuff around? Are their other options I am overlooking?
Thanks
Of course I will seek my own advice from my acct.... just trying to get a bit more informed about possibilities and some of the issues before we talk about it.