Hi all
Just wanted some input from any of you all who might be in the know. A friend mentioned that he heard that the ATO is working to clamp down on investment trusts?
Anyone have any verifiable info on this? (trust then verify – ‘Ronald Reagan’)
It is one of the best ways to structure our investments just want to know if anyone heard anything – thanks all! [biggrin]
Answers come from the courage to ask
The ATO can clamp down all they like, if you are following the laws then there should be no problem.
As for the law. the pollies wont change laws that affect themselves, would they?CATA
Asset Protection Specialist
[email protected]beg to differ Cata
but i think you might be wrong about the pollies…..
looks what happening in Victoria
Treasurer John Brumby said a new surcharge would be introduced from January 1.
The surcharge is set at .375 per cent of the land’s unimproved value plus the land tax that should apply.
The surcharge kicks in for land held in trust that is worth a minimum $20,000 . At the other end of the scale, a trust holder controlling property worth $2.7 million would face a new annual tax bill of about $36,000.hows that….Victoria… leading the way
hi alexpk
from my understanding they are looking at specific types of trust with a overseas element to it and there are many.
a trust is not like a company or product its a written agreement so there are lots of different trust.
to say that the ato is looking at clamping down on investment trusts is like saying the goverment is looking at stopping cars in Australia because toyota have recalled its 99 model echo for brake problems( this is an example and has no relivence for 99 model echo”””””’s). just like there are many types of cars here and they all don’t brake problems so is the case with trusts.
an example is a unit trust if you use them and you have two from different trust company suppliers, have a read of the trust document they will be similar but they won’t be the same and hence the ato will be looking at a type of trust and a very specific type of trust.
and each will need its specific ruling also as you can’t rule against a unit trust A that is different to unit trust B.
The ato fights battles it thinks it can win and the above is to hard and to long winded for little return and they would catch most pollies that would knock it on the head before it got anywhere near a court stepshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Also a lot of the time the ATO likes to bang the drum of publicity for a few different reasons –
~ It scares people who are cautious and so they won’t use trusts (and so will probably pay more money in tax);
~ It shows the taxpayer / middle class (largest block of voters) they are doing something – ‘clamping down on the rich’;
~ It warns people who use trusts not to go too far in claiming deductions (so cautious people might not claim everything they can).hellman
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