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.
There's a mate of mine, whose accountant has set him up family trusts, SMSF's, trading and holding company, and he is paying $8,000 a year for the privilege, and his tax benefits (net saving) come nowhere near the 8k. If anything, it may shake up accountants, who are over-recommending structures for people/entities that cannot be substantiated, with their earnings.
