The Trust Debate... An ALP Win, page-35

Not sure how prevalent that is, as far as the problem (tax minimisation) is concerned. Most companies would distribute through a P/L type arrangement, unless they have a trust to purchase equipment, businesses, etc.

The quickest way to shut down anything that is considered to be a rort, is look to the practises of accountants, who concentrate in this area.

The practice is quite common to legally minimise your tax liabilities and qualify for the Low Income Healthcare Card. Not only does the small business person family qualify from a health point of view, but there also financial benefits from a educational point of view.

I'm not an expert on trust's, but I believe it's possible for the trust or business entity to be the owner of a vehicle?
Thus technically the vehicle isn't owned by an individual, and therefore a deduction against that years earnings.
Therefore making the business earning look poorer (fabricated poverty) then it actually should be - the vehicle being used as an instrument to reduce the amount for distribution to trustees in that financial year.

Thus getting the benefits of the welfare cheat who is driving around in a flashy car.

That is what annoys the average person!

Radicool Views