Structure for Commission based income

This does not apply to me in any way, but I have a curious mind.

Is there a “normal” structure for, say Real Estate Agents - people who are high income earners through Commission payments?

We have spoken to a few recently who have said they are paying at the top rate of income tax.

If there is a better way, should their tax agent be suggesting they seek advice on this?

 

Personal services income - can't split it with partner or kids etc.

 

Best way to attempt to save tax in this scenario is by running up massive expenses related to producing that income. eg. a real estate agent could do with a Mercedes E63S as a car to be used in the course of business, $280k. $2500 for the latest model phone; get yourself an Apple Mac Pro computer, option it up - ticking all the options I managed to get a system priced at $82k not incl software, etc. That just reduced your taxable income because these purchases can be construed as a necessary expense in the course of deriving that high commission income.


Not financial advice, I am not a cat.

 

The ideal way to pay less tax shouldn't involve buying not-otherwise-required stuff for the sake of deductions.

 

I've seen some people who provide personal services through an entity and do income splitting every year. Essentially they operate through an entity and meet the requirements for a PSB so that PSI rules don't apply. That just leaves the GAAR and alienation of PSI measures. What's worse is that two of them even passed an audit. The key, I was told, is to not get carried away with "administrative/secretarial" work from associates part. The principal should still be attributed the bulk of the income. Apparently there is some kind of "benchmarks" as to what is seen as acceptable.