Tax planning is one of the most important things a business owner will need to do, now and in the future and in order to have a successful business you need to get it right.
In regards to transferring money to an offset and back into the company. Section 109R specifically deals with this and in most cases it would not be considered a repayment and treated as an unranked dividend.
It is important that the whole of the loan is repaid prior to taking a new loan. If the new loan (from the company) is made before the repayment of the old loan is repaid, there would be an issue under Section 109R as it would be deemed the shareholder was using the new loan to repay the old loan. the important thing is to make sure there isn't any loans at balance date. derek
Hi Derek, with regard to paying rent to yourself from your company, my understanding is if you then claim council rates, mortgage interest ect it can trigger CGT being required to be paid when you sell your house.
CGT will need to be considered. There are a few different methods to calculate this, depending on when any increase in property value occurred. It will come down to doing the maths if the upfront benefit will outweigh any future liability. derek
Hi Derek, by taking money from company and put back before 30 June for your personal offset account. Doesn't it trigger part IV A ? ATO can say this is a deliberate dogey way of reducing tax ? What do you think ?
the money out and then back into the company would not be considered a fringe benefit, however there maybe a fringe benefits liability if there was no interest charged (or below market rates). derek
