Hi guys
I guess I'm just few years late and so trying to get back to the above mentioned subject to ask my questions, if someone has time and knowledge to help.
I could see TerryW to be very active in answering questions back in 2008/9 so I hope he and other experts are still around to help.My questions:
– Can a Company that is its the trustee of a family trust provide services and collect GST? If yes, then how would be the process of paying off the GST to government.
As I could understand in such this occasion the company lodge a nil income tax and the income is considered to be belong to the trust. And the trust doesn't need to lodge GST as there is no quarterly BAS for it. Right?– Can the same Family trust put the costs for running the home office, educational and operational costs toward the Trustee (the Company) and claim the paid GST's back.
In this occasion the trustee pays the trust the total income – the costs.Can you please comment on this?
Thanks.
Hi M
I don't know much about the tax aspects and less about GST, but a trustee company can register for GST if it is conducting a business. But this is not recommended due to the risks associated with business – ie don't have your property owned in the same trust as a business. A GST is collected it would need to be paid to the ATO with BAS statement lodgement. reporting is generally every 3 months, but it can be done yearly in some instances.
If the company is only acting as trustee then there is no income and the trust would be the one lodging tax returns and BAS statements.
If a trust is renting premises then the costs associated with this could be claimed, if it is running a business for example. you could charge your trust rent for a home office, but then this would be income to you and may result in the loss of the CGT exemption on your house too. It may be a good idea if you are renting the house though. I think the trust would only be able to claim the GST back if it is registered for GST.
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
Many thanks TerryW.
I'm still puzzled why ATO has asked me to lodge trust annual tax return (my company is trustee of the family trust of mine) while I am lodging BAS and pay GST through my company.
They told me that I even don't need to lodge company annual tax return, which I see a clear conflicting message.
At the same time other mobs from ATO told me to lodge annual company tax return even for nil ammount, which is fine. But it sounds a bit complicated when I am lodging BAS for company and lodge annual tax return for family trust
However as this company is the trustee then I think it should be OK.I will speak to an accountant about this.
Cheers,
All trusts need to lodge tax returns.
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
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