With the recent crackdown on UPEs (Div 7A) and the uncertainty regarding taxation of trust income, more people are looking to companies again as an operating structure.
This paper includes:
- a brief overview of the issues currently being faced by taxpayers operating through trusts
- a brief overview of the general advantages and disadvantages of operatingthrough a company (tax and non-tax)
- discussion on the use of a company for conducting a business, including mechanisms which may be used to minimise any perceived disadvantages
- discussion on structuring options to try and achieve “the best of both worlds”
- discussion on whether a company could be effectively used as an investment vehicle.