Hi All,
I came across and article on the net after investigating trust options etc and a particular company are offering a trust setup ideally suited for property investment. I was unsure of the exact etiquette about mentioning company names so I have left it out for now….if its ok I'll respond as to whom the company is…although they are national in Australia, two partners which have released a few books on property investment.
My question is (if you can guess whom the company is) has anyone got one of these trusts?
thanks
What is the date of the article?
There has been a few recent developments with regards to changing rules of Land Tax in NSW and the ATO is not agreeing with the tax treatment of hybrid trusts with those that promoted them.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
AnthonyJF wrote:Hi All,I came across and article on the net after investigating trust options etc and a particular company are offering a trust setup ideally suited for property investment. I was unsure of the exact etiquette about mentioning company names so I have left it out for now….if its ok I'll respond as to whom the company is…although they are national in Australia, two partners which have released a few books on property investment.
My question is (if you can guess whom the company is) has anyone got one of these trusts?
thanks
I think I know which mob you're talking about (the firm includes the initials N and C?).
I am aware of tax accountants and commentators having issues with some of the trusts you are referring to. Proceed with caution.
Yes that is correct the initials are N and C…
I thought as a precautionary measure I could request from an accountant to get a private ruling from the ATO about the trust setup and how it would operate just to make sure that all is above board…
Great idea. Make sure the draft deed provided to the tax office is exactly the same as the one you are going to use. Otherwise, the ATO may distinguish the ruling on the basis that the facts are different from those disclosed in the application.
Hi all
Yes you should ensure that you submit all facts to ATO and you should run the process with your accountant. The ATO dislikes those creative instruments and ATO has many means to deny interest deductions thru e.g. applying Part IVA arguments (meaning if the main purpose of setting up the arrangement was to obtain tax benefits). Even if you insists on the commercialisation purpose (instead of tax benefits) (like the argument of CN), you will never know the results unless the matter is being tested in court. Having a binding private ruling from ATO will provide better security.Keith Mar CA M.Tax
SUNNYSIDE ACCOUNTANTS
[email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
