Historically speaking... Back in the late 1970s, the Phillips Case paved the way for what is generally accepted as the standard business structure for most professional practices.
That case actually involved an accounting partnership that claimed deductions for payments made to a service trust for the hire of office furniture and equipment, non-professional staff, provision of share registry services, interest on outstanding amounts and other incidental charges.
The Commissioner of Taxation argued that a significant effect of the arrangement was to divert income away from the high marginal tax rate accountancy partners to persons interested in the service trust with much If you’ve not already done so, you still have a month left to ensure you are taking the right perspective on the most dramatic tax changes in over two decades and the largest superannuation changes in a decade.
The simplified superannuation reforms announced by the Federal Government in last year’s budget (Simplified Super) are now law. On 15 March, the Tax Laws Amendment (Simplified Superannuation) Bill 2006 and nine other related Bills, introduced into parliament on 7 December with bi-partisan support, received assent.
As mentioned in my article titled “Thanks for the new super proposals - but should I still pay off my mortgage first?” (ADP Nov/Dec 2007) and notwithstanding that most changes are due to take effect from 1 July 2007, all advisors have been planning client strategies since the Federal Government’s budget announcements back in May 2006.ower effective tax rates. These persons comprised spouses of the partners, dependants, family companies and trusts.