Forum Replies Created
- sml wrote:
a) The bulk of my costs (COGS) are GST free so I cannot claim any COGS GST component.
GST-free allows claiming input tax credits.
Do you mean input taxed ? Even these may have some service component you might be able to claim.
Anyway, anti-avoidance provisions prevent you splitting your enterprises between entities if they are acting in concert.
Cheers,
Rob
Anthony K wrote:2. There wont be any CGT because its all happend in < 12 months AND you did not commence with view to make the changes it just evolved. – CGT needs 2 elements, Intention to make a gain and 2. > 12 months and 1 day duration,
CGT can apply even if there was no intention to make a gain and also for durations less than 12 months.
Cheers,
Rob
god_of_money wrote:Terry
that is what I think
But my accountant made a big fuss that in term of asset protection, it can be challenged. I am not sure what he mean by that. He told me that it is better to get the loan with <XXX Family trust> as stand alone rather than "ATF".Probably getting confused with double stamp duty implications ?
Cheers,
Rob
Terryw wrote:What you could do with this is to get your mum to buy as trustee for yourself or you and yourwife. This would be a bare trust where you and your wife are the ultimate beneficiaires and mum is the trustee.
You could avoid bare trusts and asset protection problems, also 'rent to buy' contracts and yet still get your main residence exemption.
Talk to a solicitor about the impact of ID 2005/216.
Depending on your state, there may be stamp duty concessions as well.
Cheers,
Rob
fujitsu wrote:I had to write a letter in requesting them to transfer the $5k to my savings account. I now have that $5k in my offset account.
All this was done while my house was a PPOR. I am renting it out now.If that $5k initially was mixed with other funds in your savings account then you have a problem.
Cheers,
Rob
Merca wrote:What about changing the domicile (don't know the correct term) of the o/s trust to Australia from the o/s country? That's effectively the objective – allow existing trust funds to be used to invest in Australian property, without first distributing them and then re-settling them in a new trust, during which process there seems to be tax/legal issues. The trust deed does provide for 'changing the law of the trust to another jurisdiction'.
A trustee becoming a resident, or the central management & control shifting to Australia will make the trust a resident.
It might be better to settle a new tust with a customised deed for Australian conditions.
Cheers,
Rob
Still not enough detail to even start.
If your friend is a resident of an OECD country then they most likely should have been on statutory accruals, in other words taxed on trust income even though no distribution made. In which case this is a non-assessable distribution.
Otherwise, it depends on the tax rules in the o/s country, Australia and any double tax agreement as to how this should be done.
One strategy is to exploit timing differences between loss of residence of the o/s country and acquiring residence in Australia whilst making the distribution in transit.
So you need a specialist law firm that has contacts in the o/s country as well to exploit three sets of laws !!
Cheers,
Rob
TR 97/23
Cheers,
Rob
Merca wrote:TerrywIf the overseas trust gifts the funds to the local trust, is this not income to the trust and accordingly taxable in Australia?
Regards
MercaGenuine gifts are not taxed in Australia, but there may be gift duty in the country of residence.
If you make the local trust a beneficiary of a foreign trust then there is a lot more to consider.
You still haven't explained how the o/s trustee will 'gift' what is not their's to deal with.
Its the way you do it that matters.
Cheers,
Rob
Merca wrote:The 'owner' of the assets (presently held in cash) is a foreign trust. Would the trustee be able to settle an Australian trust with these assets?
A trustee is not an 'owner', therefore they may not gift the property although they may be able to settle under instruction of a beneficiary.
However that beneficiary must have a sufficient interest in the property under the o/s trust deed to enable them to give direction.
Cheers,
Rob
