Liability Protection: Some businesses, such as companies, offer limited liability protection. This means the business owner’s assets are protected from debts and liabilities. Tax Implications: Different business structures have different tax implications. For instance, a sole proprietorship's income is taxed at the owner's tax rate. At the same time, a corporation may be subject to…
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The Google Tax is a UK tax introduced to tax multinational internet companies that divert UK profits to lower taxing foreign countries. It’s a diverted profits tax but is known as the Google tax as it target’s Google’s low tax payments. In the 2013 financial year, for example, Google recorded £5.6 bn of UK sales…
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An incorporated association is a formal legal structure adopted by a broad range of non-profit organisations. Incorporated associations have the word 'incorporated' or the abbreviation 'Inc' in their name. Incorporated associations are subject to state or territory incorporation laws and are administered to by a government body within the relevant state and territory. As a…
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A hybrid trust is a particular type of trust that combines the best elements of a discretionary trust and a unit trust in the one entity. This structure is useful for holding capital growth and income-producing assets such as rental properties. The advantages of a hybrid trust are: Can save tax by streaming different types…
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A home unit company is a proprietary company whose sole function is to act as the body corporate of a block of flats or units. The company operates as a body corporate to administer the property and to facilitate, protect and enforce the rights of company members concerning the exclusive occupation of the residential areas…
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Foundations are legal structures set up by some not-for-profit organisations to raise funds, hold funds and distributing funds (following the rules of the foundation). The advantages of a foundation are: Having a separate entity solely focused on fundraising can increase your organisation’s capacity to access the private sector and government funds. A separate board of…
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Farm discretionary trusts are used to acquire land for primary production while also providing flexibility so the property can eventually be transferred to other family members. There is a stamp duty exemption available for the transfer of farming land: From one or more individuals who are members of the family or a company whose…
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Employee share schemes (ESS) give employees shares in the company they work for, or the opportunity to buy shares in the company. Employees generally pay for the shares through a loan from their employer, through salary sacrifice, an upfront payment, from employee bonuses, or by using the dividends received on the shares. An employee share…
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An early-stage innovation company (ESIC) is a company that has high growth potential, can scale, addresses a broader than the local market, and has competitive advantages. ESIC companies can provide investors with the following tax incentives: A 20% non-refundable tax offset on investments, capped at $200,000 per investor per year. A capital gains tax exemption,…
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A discretionary trust (also known as a family trust) is a trust established to hold a family's assets or operate a business. Generally, they are established for asset protection and/or tax purposes. The benefits of a discretionary trust include: Flexibility on income distributions. The trustee decides before the 30th June each financial year how that…
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2