Tax Tip 111: Getting money out of a Bucket Company

Discussion in 'Accounting & Tax' started by Terry_w, 21st Apr, 2016.

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  1. Terry_w

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

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    You wouldn't find a bank willing to do that.

    get your own legal advice but in my opinion it would trigger a deemed dividend as the company is providing financial accommodation to a shareholder or associate, assuming they own the company.
     
    Terry_w, 29th Mar, 2024
    #121
  2. Terry_w

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

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    If you beneficially own some shares in the bucket company, the ultimate way is death. Leaving those shares to the trustee of a Testamentary Discretionary Trust which can then receive dividends from the company and distribute these to a wide class of beneficiaries including minor children at adult tax rates.
     
    Terry_w, 17th Apr, 2024
    #122
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    PSI rules
    Part IVA
    s100A
     
    Paul@PAS, 17th Apr, 2024
    #123
    Terry_w likes this.
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