Things that p*** you off/bug you/annoy you

[OldBomb]

at the moment, i am far better off paying tax as an individual rather than setting up a private entity. If however i was to earn say $200,000, it would make more sense from a tax point to operate as a company. with the new tax rates this changes slightly, but you're still paying $0.37 an earnings over $90,000 rather than a flat tax of $0.25 as a corporation. most millionaires set up a trust to dodge tax, but they also do it to hide money from their spouse, who cannot touch it in the event of a divorce.

 

[losh1971]

It was probably up to me to understand what forming a Co meant for us. Unfortunately it sounded better than it was and I didn't know what to ask or how to ask it. It came down to being a bad choice, but it's closing this week so should be sorted.

 

[MasterOfReality]

at the moment, i am far better off paying tax as an individual rather than setting up a private entity. If however i was to earn say $200,000, it would make more sense from a tax point to operate as a company. with the new tax rates this changes slightly, but you're still paying $0.37 an earnings over $90,000 rather than a flat tax of $0.25 as a corporation. most millionaires set up a trust to dodge tax, but they also do it to hide money from their spouse, who cannot touch it in the event of a divorce.

There are certain rules you need to satisfy to be able to split income off and save tax.

When it works and you earn enough, you can save up to approx $30k in income tax with two beneficiaries. It's fantastic. I want to add a third to my trust to take advantage of 3 x tax free thresholds but there is a risk that they can come back and claim that money as theirs.

 

[MasterOfReality]

That applies to all dealings with the ATO in that whoever signs actually declares everything is true and correct, and if it is not signed, then it is not accepted, however, accountants have a duty of care.

All care, no responsibility.

 

[rambunctious]

All care, no responsibility.

You must know the dick head accountants I used over the years.

 

[AirStrike]

There are certain rules you need to satisfy to be able to split income off and save tax.

When it works and you earn enough, you can save up to approx $30k in income tax with two beneficiaries. It's fantastic. I want to add a third to my trust to take advantage of 3 x tax free thresholds but there is a risk that they can come back and claim that money as theirs.

I'm counting down till my son is 18 haha

 

[MasterOfReality]

I'm counting down till my son is 18 haha

Yeh same although it'll be 9 years until he is 18, I'll be looking at retiring then. Three kids under 18 at the moment so can only distribute $412 each (I think).

 

[Immortality]

All care, no responsibility.

That really is a stupid rule, you pay them for their expertise and yet they have no responsibility.

Can you just imagine a geo-technical engineer at a mine saying "all care, no responsibility" and then a mine collapses....

 

[MasterOfReality]

That really is a stupid rule, you pay them for their expertise and yet they have no responsibility.

Can you just imagine a geo-technical engineer at a mine saying "all care, no responsibility" and then a mine collapses....

I have seen what happens to a registered geotech that signs off on something that subsequently fails. It's not pretty and I never want to find myself in court trying to defend myself. It's similar to surgeons that get raked over the coals for conduct. It's around 50-100k in legals to try and clear your name, and you'd be hoping your professional indemnity insurance pays the legal fees.

I think the mining companies are now finally realising that the rates us independent guys charge are not all that outrageous compared to lawyers, given the risk we have to own.

 

[chrisp]

That really is a stupid rule, you pay them for their expertise and yet they have no responsibility.

Can you just imagine a geo-technical engineer at a mine saying "all care, no responsibility" and then a mine collapses....

I seem to recall that rule (at least in Australia) came in as some tax payers were hiding behind their accountants and saying that the accountant completed the tax return, and that they simply blindly signed it. It was a finger-pointing exercise when the proverbial hit the fan. The ATO changed the rules (or maybe they just made them more explicit?) and now says that the tax payer is responsible for the tax return regardless of who fills out the tax return.

I have a relative who used to work in the tax department. Her job was to contact those who owed overdue tax and ask them what they intend to do. She said it was quite a good job as she didn’t have to be threatening or harsh at all. On the contrary, she could be pleasant and friendly about it. She said that if they didn‘t do anything, the case would automatically escalate and the next level gets involved, and would continue to escalate until some payment/recovery arrangements are in place. She did say that the ATO would eventually get it‘s money.