This strategy involves using the entertainment facility leasing provisions of the FBT Act to make owning and operating a boat or yacht as tax effective as possible. To achieve this, it should be structured as follows: Individual owns the boat or yacht. Individual leases the boat to the business entity on an exclusive basis for…
Objectives: Thomas is a plumber who wants to save tax so he can buy a new car. Facts: Thomas’s car was stolen 3 months ago and he is still waiting for an insurance payout. During this 3-month period Thomas borrowed his wife’s vehicle and travelled 5,000 work related km. Thomas’s wife also uses…
Bearer share companies are companies where the individual shareholders are not known to the company. The bearer share companies do not know anything about their shareholders—not their names, addresses, or the size of their shareholdings. Instead, each shareholder’s ownership in the bearer share company will be evidenced by their physical possession of a share certificate…
A Luxembourg Holding Company is a resident company in the tax haven of Luxembourg which operates subsidiaries. Guardian Industries Corp, Amazon, Millicom, PayPal, Apple iTunes, DuPont Teijin Films, Fanuc Robotics, and Skype have all chosen Luxembourg for their European business headquarters. In addition, ArcelorMittal (the world’s leading steel producer), SES (the world’s largest satellite…
Protected cell companies (PCCs) were originally developed in Guernsey in 1997 to provide a solution for companies who wanted to take advantage of the risk management solutions offered by a traditional single parent captive insurance, but who did not want to establish a captive of their own. These are sometimes called divided asset companies or…
Average weekly pay: $1,473 Employment size: 14,100 Future growth: Stable Skill level Bachelor degree or higher …
In 1974 the UK’s top marginal tax rate of 83% applied to incomes over £20,000 (equivalent to £200,000 in 2018). In addition, passive investment income was hit with a 15% investment income surcharge which took the top rate to 98%. In 1974 750,000 people were in the 83% plus tax bracket. During this time senior…
Trusts involve a settlor transferring (or ‘settling’) assets (i.e. the ‘trust property’) on the trustees. The trustees manage the assets for the benefit of a person, class or persons (the ‘beneficiaries’). An offshore trust is simply a conventional trust that is formed under the laws of an offshore jurisdiction. Most offshore jurisdictions have sophisticated…
The Luxembourg special limited partnership (SLP) is a highly tax efficient investment vehicle that offers a high degree of contractual flexibility and cost efficiency (as the fundraising and investment structuring is in one jurisdiction). The SLP is exempt from income and wealth taxes and is only subject to an annual 0.01% subscription tax (which is…
Objectives: Frankie is an aircraft engineer working for Qantas at the Sydney Airport. Frankie uses some of his own specialist tools to perform his job every day but doesn’t leave them at the workplace overnight due to recent thefts. Frankie wants to protect his valuable tools and save tax. Facts: …
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2