Hybrid Trust - Register for GST? - PropertyInvesting.com

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

hippo
Member
@hippo
Join Date: 2004
Post Count: 5
July 27, 2005 - 12:33 pm
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…
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 28, 2005 - 12:09 am
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
grossrealisation
Member
@grossrealisation
Join Date: 2005
Post Count: 1,031
July 28, 2005 - 12:30 am
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
cata
Participant
@cata
Join Date: 2005
Post Count: 559
July 28, 2005 - 4:44 am
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]
mmabood
Member
@mmabood
Join Date: 2011
Post Count: 3
January 9, 2011 - 6:47 am
Hi
How about if the trust is to provide services to the other companies and collect GST?
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
January 9, 2011 - 12:58 pm
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.
luke86
Participant
@luke86
Join Date: 2010
Post Count: 470
January 12, 2011 - 2:40 am
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
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 12, 2011 - 8:46 pm
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