A bachelor tax is a tax imposed on bachelors. The historical motives for imposing a bachelor tax have varied greatly from encouraging marriage, encouraging population growth, penalising delinquent and irresponsible bachelors, to simply raising government revenue. As Oscar Wilde (Irish Novelist and Poet, 1854-1900) said, ‘Rich bachelors should be heavily taxed. It is…
Read More »
The tax systems of most OECD and developed countries are very similar. Generally, individuals who are deemed to reside in their country will be tax residents and taxed on their worldwide income. For example, an individual is an Australian tax resident if they either reside in Australia or satisfy one of three statutory residence tests…
Read More »
There is no universal or legal definition of foundation. A foundation can be a trust, company, or other entity; and be either not for profit, or for profit. A foundation can be established under a will, by an individual, family, company or the community. Liechtenstein is one of the few countries which allows a private…
Read More »
Objectives: Tom, an employee mining electrician has just got a new job in Port Headland, WA and will need to relocate his family from QLD. He wants to save some tax to help fund the relocation costs. Facts: Incurs $18,000 in airfares, accomodation, and furniture transport costs relocating the family. Tom’s current wages income is…
Read More »
Switzerland was the first ‘true’ tax haven and became a tax haven immediately following World War I. As Switzerland remained neutral during the Great War they could maintain a low level of taxes as they didn’t have the high infrastructure costs other countries had. In contrast, many European governments raised taxes sharply to help pay…
Read More »
Income generated from assets held in tax havens is often not disclosed, or included, in the controlling taxpayer’s tax returns. The amount of income not disclosed, and taxes avoided, will never be known. But what is certain, is that with $6 trillion of assets in tax havens, the income generated (and untaxed), must be phenomenal. …
Read More »
This strategy involves employees with large employment income salary sacrificing part of their wages into excess concessional super contributions. The tax consequences of this are: The employer receives a tax deduction for the total super contributions made. The excess super contributions are included in the employees individual assessable income and taxed at marginal rates. The…
Read More »
Average weekly pay: $1,700 Employment size: 17,100 Future growth: Very Strong Skill level Associate Degree or Diploma …
Read More »
A self-managed super fund (SMSF) is an Australian trust structure that is used by members to personally manage their retirement savings. SMSFs are established for the sole purpose of providing financial benefits to its beneficiaries in retirement, with the benefits passing to the deceased’s beneficiaries on death. The first SMSFs were established in 1915 to…
Read More »
A holding company is a parent corporation that owns enough voting shares in another company to control its policies and management. The benefits of forming a holding company include: The holding company itself is protected from losses if a subsidiary company fails and goes into liquidation. The creditors of the subsidiary company…
Read More »"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2