How to avoid paying a lot of tax?

Diggs1 · 28 December 2011

Create a Trust!!

See your accountant.

SevenFX · 28 December 2011

Walkabout said:
How to avoid paying a lot of tax...

tax minimization strategies i'm guessing are legit.

https://www.aussiestockforums.com/forums/showthread.php?t=5631&page=1

http://www.google.com.au/#pq=tax+mi...osb&fp=e0be6dc5118e9780&biw=1356&bih=723&bs=1

DavidDeegan · 28 December 2011

Certainly see an accountant as has been suggested.

Depending on your circumstances a pre-tax contribution to superannuation could help, if within the concessional contribution limits this will reduce the tax to 15%.

Setting up a company means you will pay tax of 30% on your futures trading profits.

If you setup a trust then whoever receives the distribution of futures trading profits will pay tax on that distribution at their marginal rate of tax.

If setting up a company or trust there will be both initial and ongoing costs involved, so depending on your situation you may choose to just pay the personal income tax or put the profits into super pre-tax until the futures trading profits are enough to justify the costs involved for a company or trust.

CanOz · 29 March 2012

Julia said:
Or in New Zealand.

Or china, or Thailand ..... The trick is to stay expat as long as possible for tax purposes. Being a citizen of a commonwealth country but a non resident for tax purposes. It means lots of hassles with temporary visas, frequent visa runs, no kids, and a love for travel.

Once we start having kids we will need the benefits that being a tax payer provides and will need to settle down and start to contribute.....make hay while the sun shines I say (as I sip another cool drink and enjoy the view from the Soneva Kiri Resort)!

CanOz

McLovin · 29 March 2012

CanOz said:
Or china, or Thailand ..... The trick is to stay expat as long as possible for tax purposes. Being a citizen of a commonwealth country but a non resident for tax purposes. It means lots of hassles with temporary visas, frequent visa runs, no kids, and a love for travel.

Once we start having kids we will need the benefits that being a tax payer provides and will need to settle down and start to contribute.....make hay while the sun shines I say (as I sip another cool drink and enjoy the view from the Soneva Kiri Resort)!

CanOz

Unless you change your domicile (which temporary visas do not do) then you would still be an Australian resident for tax purposes. Being out of the country for 183 days/year is not the only test.

Nice to know that you won't contribute to the system until you need benefits.

CanOz · 29 March 2012

McLovin said:
Unless you change your domicile (which temporary visas do not do) then you would still be an Australian resident for tax purposes. Being out of the country for 183 days/year is not the only test.

Nice to know that you won't contribute to the system until you need benefits.

I've been an expat for almost 7 years......PWC is positive that I'm an expat for tax purposes.

I pay tax in the country that I reside in.....I just don't pay capital gains tax.

I am a proponent of taxes, provided the benefits are realized in good health care and education, as a minimum......for all.

CanOz

McLovin · 29 March 2012

CanOz said:
I pay tax in the country that I reside in.....I just don't pay capital gains tax.

Fair enough.

Re CGT: Again it goes back to what is a capital gains tax event. For most traders it doesn't matter where they are living their capital gains are not considered CGT events and instead will be taxed as ordinary income.

CanOz · 29 March 2012

McLovin said:
Fair enough.

Re CGT: Again it goes back to what is a capital gains tax event. For most traders it doesn't matter where they are living their capital gains are not considered CGT events and instead will be taxed as ordinary income.

Yes, you're correct...certainly in respect to Canada and Australia where it is taxed as if it were normal income. I suspect countries that have less complex personal income tax laws, such as china, they just keep it simple for now and do not tax capital gains. They do tax traders though, through a transaction tax.

You seem quite well versed in tax McBeancounter.....are you a bean counter?

CanOz

McLovin · 29 March 2012

CanOz said:
Yes, you're correct...certainly in respect to Canada and Australia where it is taxed as if it were normal income. I suspect countries that have less complex personal income tax laws, such as china, they just keep it simple for now and do not tax capital gains. They do tax traders though, through a transaction tax.

The basis for CGT is to tax non-inventory asset gains. Otherwise in theory, no company should pay tax because they are all in the business of realising a capital gain (buying a good for $x and selling it for $x+y). I'm not familiar with Chinese tax law, but I'm sure they get someone to pay up.

CanOz said:
You seem quite well versed in tax McBeancounter.....are you a bean counter?

CanOz

God no, I think I'd pull my hair out if I was an accountant (no offence to any accountants). I was in banking so I've had a fair bit of exposure to these sort of things.

How to avoid paying a lot of tax?

Diggs1

SevenFX

DavidDeegan

CanOz

Home runs feel good, but base hits pay bills!

McLovin

CanOz

Home runs feel good, but base hits pay bills!

McLovin

CanOz

Home runs feel good, but base hits pay bills!

McLovin

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