hi all
If you own a qld company with a trust underneithe.
and that company owns a property outside of qld (nsw vic wa)can you answer the following
1. Change a director of the company does this trigger either stamp duty or cg tax on that directors equity position within the company.
2. There is no cg tax on companies but is that the case if the qld company owns equities outside of qld.
3. Can you sell the company in qld with these items within the company and no capital gain tax(cg)
4.Do the director have to be qld residence at all times.
Not sure on qld companies I know of nsw and vic companieshere to help
Hi Gross
I am not an accountant, but would think the following:
1) A director does not own a company, just runs it, so there should be no CGT or stamp duty implications
2) Shouldn’t matter where the assets are located. If the company were to sell a house for a profit, then tax must be paid. Location of house would be irrelevant
3) If you sell a company, then you would be selling the shares in the company. If you sell the shares for more than you purchased them, then you would pay CGT.
4) Company regulation is through commonwealth legislation, so the location of the directors should not be an issue.
There may be issues with stamp duty etc, as this is a state issue. May accountant has said to form companies in VIC (less stamp duty) and trusts in QLD (no stamp duty).
I am also not sure what would happen if you purchased shares in a company for $1, and the company then purchased property, the property has risen in value, and then the shares are sold in the company. How would CGT be worked out in this situation?
Terryw
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hi terry
sorry but it is more complex and thats why I have asked for an accountant in qld I take your advice and I don’t like to sound like its not appreciated but I know about vic companies and trusts and the roles of companies directors but this is specific for qld and if there is any one that can shead light on wa companies with regard to the below questions.
The answers with regard to vic and qld trust, have a chat with your accountant there are other reasons that he has told you to organise in this manor, and it not just cg there are other taxes involved.here to help
Gross
Changing a Director has no bearing in trigering Stamp Duty or CGT irrespective in which State the Company was incorporated.
ASC only requires 1 Director of the Company to be a resident of the Country whilst Directors can be residents overseas. Where the Directors reside makes no difference what so ever.
The triggering of Stamp Duty or CGT comes only when the shares in the Company are sold.
A Director may not and does not have to be a Shareholder.
When Shares change hands CGT is paid as Terry points out if the value of those Shares has increased.
Stamp Duty is payable dependant on the individual State but in the case where a Company may merely hold an Option to purchase property and not be considered “Land Rich” then no duty would be payable if the State does not charge SD on Options.
Cheers Richard
Ph: 07 3720 1888
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Richard Taylor | Australia's leading private lender
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