Could private investment companies be the new SMSFs?

Discussion in 'Accounting & Tax' started by Nodrog, 11th Feb, 2017.

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  1. Perthguy

    Perthguy Well-Known Member

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    Yikes! :eek:
     
    Perthguy, 13th Feb, 2017
    #21
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes Div7A issues if you start borrowing money from a company, but if you just leave it there and use the company to move income from one year to another then no issues.

    One discretionary trust could own the shares of the bucket company and be the income generator for that company, but it is a circular situation - income out the trust into the company and out to the trust again.

    Two trusts would be better, but I have no tax or legal reasoning behind this idea!
     
    Terry_w, 13th Feb, 2017
    #22
    Nodrog likes this.
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