A little while ago I had a chance social encounter with an accountant. As people will talk ailments with doctors, crime with police and scandal with journalists, chat fell to occupations and structures. The accountant was a little perplexed that I operate as a sole trader with no company structure, let alone a family trust.
He suggested I really should consider setting up a trust as I could save several thousand dollars a year in tax, after the initial set-up costs. He said I'd have no trouble meeting the three ATO legitimacy tests – the third of which was that the trust wasn't being set up to avoid tax.
Friday, 25 January 2013
Maybe the Government should target family trusts
The ever interesting Michael Pascoe takes a look at tax avoidance via family trusts in Obeids' trust is the best ad for tax reform. He concludes with an interesting story: