All Topics / Help Needed! / Hybrid Trust – Register for GST?

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of hippohippo
    Member
    @hippo
    Join Date: 2004
    Post Count: 5

    I have set up a Hybrid Trust with a company as Trustee. When the company was orginally set up our Accoutant did not register for GST.

    Should the Trustee Company register for GST? What would be the impact of registering for GST eg. BAS,etc.

    I was told that if we did not register for GST we will not be able to claim any GST for any purchases relating to our investment property..HELP PLEASE…

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    What will your trust be doing? If just residential proeprty investment, then i beleive there is no reason to register for GST.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi hippo
    not sure about your accountant but I think you should register for gst either the hybrid or the company will get income in will do the maintenance and any thing over $50.00 carry’s gst.

    They are very different things trusts and companies but not when it comes to gst.

    You are moving in a very special area here and it need’s special advice which I wouldn’t give.

    This I will give talk to a couple of accountants,
    prior to running with it talk to the ato they are reasonable to talk to with this type of structure you will be talking to them at some stage whether you like it or not.

    Trust also to my knowledge do bas and are set up for a particular reason.

    here to help

    Profile photo of catacata
    Participant
    @cata
    Join Date: 2005
    Post Count: 559

    If the trustee company registers for GST it then becomes a trading company. I would only register the trust as you want the company to stay non-trading.

    CATA
    Asset Protection Specialist
    [email protected]

    Profile photo of mmaboodmmabood
    Member
    @mmabood
    Join Date: 2011
    Post Count: 3

    Hi
    How about if the trust is to provide services to the other companies and collect GST?

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    if the company is going to provide services worth >$75k then you’ll need to register. You cannot collect gst (issue a valid tax invoice) without being gst registered.

    Profile photo of luke86luke86
    Participant
    @luke86
    Join Date: 2010
    Post Count: 470

    If your trust provides services, then the assets held in the trust can be claimed should the trust b sued for any reason. This is generally not recommended for this asset protection reason.

    Why not set up a second trust that provides the services to provide better protection for your assets?

    Cheers,
    Luke

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    luke86 wrote:
    If your trust provides services, then the assets held in the trust can be claimed should the trust b sued for any reason. This is generally not recommended for this asset protection reason.

    Why not set up a second trust that provides the services to provide better protection for your assets?

    Cheers,
    Luke

    Or even a company as directors of trustee companies trading can be personally held liable for debts of the trust.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 8 posts - 1 through 8 (of 8 total)

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