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theasxgorilla said:
??????????? Where is that?????????
Beating the Taxman - strategies for traders to minimise tax
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??????????? Where is that?????????
theasxgorilla
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Sweden. Also Luxembourg, Greece, Spain and France. From Wikipedia:
Some countries' governments require declaration of the tax payers balance sheet (assets and liabilities), and from that ask for a tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level. The tax is in place for both "natural" and in some cases legal "persons".
People can and do elect to reside or do business in particular sovereign jurisdictions for tax reasons ALL the time. Why do so many Formula 1 drivers live in Monaco?
Some countries' governments require declaration of the tax payers balance sheet (assets and liabilities), and from that ask for a tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level. The tax is in place for both "natural" and in some cases legal "persons".
People can and do elect to reside or do business in particular sovereign jurisdictions for tax reasons ALL the time. Why do so many Formula 1 drivers live in Monaco?
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i know someone who has...
its very illegal though...
its very illegal though...
theasxgorilla
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jiggy said:
Duh! It happens on a daily basis. Inspite of Australia originally being a penal colony neither you nor your money are actually trapped here
I'm a great believer in George Bernard Shaw's famous dictum "All the professions are a conspiracy against the common man!" The fewer professionals (accountants, financial and tax advisors, fund managers, overseas hidey-hole clever-dicks) that I allow to take a nibble as my money passes though their paws - the wealthier I've become. For taxation advice, I phone the ATO and get put through to the section (for free) that handles what I want to know. For a hard copy, I'm often directed to an obscure corner of the ATO website where I can download (again for free) the relevant ruling or interpretation. The only professionals I employ are a stock broker (to warn me when I'm about to make a huge blunder) and a real estate agent to pick good tenants and collect rents. Unlike fund mangers (who collect 2% of an investor's capital in fair weather and foul) real estate managers get paid only when I'm making money. I keep my own books, do my own tax returns and undertake most property repairs. Conclusions: The property and stock markets exist to transfer money from the impatient to the patient - which is why I'm not a day trader. If you're paying tax, it means you're making money. Poor people don't pay tax. Stop plotting and scheming and enjoy life while you can. Shrouds don't come with pockets!
Quick question:
If you buy and sell shares very quickly, as in hold them for only a few hours resulting in no CHESS statment showing that you owned them.
Do you still have to declare it in your tax return?
Im thinking legally you never owned those shares, as settlement never took place.
Am I thinking on the right track??
If you buy and sell shares very quickly, as in hold them for only a few hours resulting in no CHESS statment showing that you owned them.
Do you still have to declare it in your tax return?
Im thinking legally you never owned those shares, as settlement never took place.
Am I thinking on the right track??
theasxgorilla
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falcon55 said:
Can you ellaborate? Is this instance of an offshore account illegal, or are you saying that all instances of offshore accounts are "very illegal"?
theasxgorilla
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Great post GM. As you describe, sometimes it's necessary to utilise professionals, for tax purposes or otherwise. Unfortunately if we were all common men I'm not sure where that might leave our societies. I quite like the idea that my house was architecturally designed and professionally engineered. Helps me sleep at night
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I am exploring the opportunity to be a full-time investor, my accountant tell me I cannot:
He told me that if my transaction is large, i.e. more than 30 sells in a year, and if I have no other job, I have to be considered as share trader, not a investor. Anyone knows? Many thanks.
He told me that if my transaction is large, i.e. more than 30 sells in a year, and if I have no other job, I have to be considered as share trader, not a investor. Anyone knows? Many thanks.
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Thanks, noobs.noobs said:
Do I need to incorporate a company to conduct share trading business to enjoy 30% tax? Thanks.
mmmining,
You don't have to have an ABN or a business entity as such just be able to satisfy the criteria of a share trader. Please see the link below ehich should provide some more clarification. The 30% for share trader is only from memory but I am pretty sure it is still the case.
http://www.ato.gov.au/businesses/content.aspdoc=/content/21749.htm&page=2&H2
You don't have to have an ABN or a business entity as such just be able to satisfy the criteria of a share trader. Please see the link below ehich should provide some more clarification. The 30% for share trader is only from memory but I am pretty sure it is still the case.
http://www.ato.gov.au/businesses/content.aspdoc=/content/21749.htm&page=2&H2
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noobs said:
Thank you, noobs for the info. I will try to show it to my accountant, or hire a different one.
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I would like to transfer some of my shares to SMSF. I have been told by my broker that I can pick a date for the transfer to determine the share price. The date could be back in 3 months. It that true?
If it is true, we may have a good strategy to minimize tax by contribution the quick gained stocks to super fund to pay 15% tax in super for realized gain, instead of paying marginal tax in person income, any thought? Thanks.
If it is true, we may have a good strategy to minimize tax by contribution the quick gained stocks to super fund to pay 15% tax in super for realized gain, instead of paying marginal tax in person income, any thought? Thanks.
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Mmmmmmining.........
Only a bloody broker would tell you such rubbish!!!!!
I guess this just depends on how honest you are and how much tax risk you want to take on. I am an accountant with a CA firm - I wouldn't be recommending to you to transfer your shares with big gains and backdate it...... The tax act has an entire chapter dedicated to such a move, called anti avoidance. Essentially, what you are doing here is value shifting a known capital gain to your super fund for the sole purpose of obtaining a taxation benefit. Now, there would be a chance you wouldn't be caught - but if you did such a transfer, you would need to send the off market transfer to the registry or your sponsoring broker - if there was say 3 months between the date of the transfer and the share price had soared, not only would the person processing the form get a bit suss, but in the event of an audit, the ATO would pick it up.
So, my answer here is in accordance with the tax act, the answer is no..... The rest I leave up to you!!!!!!!!!!!
Cheers
Only a bloody broker would tell you such rubbish!!!!!
I guess this just depends on how honest you are and how much tax risk you want to take on. I am an accountant with a CA firm - I wouldn't be recommending to you to transfer your shares with big gains and backdate it...... The tax act has an entire chapter dedicated to such a move, called anti avoidance. Essentially, what you are doing here is value shifting a known capital gain to your super fund for the sole purpose of obtaining a taxation benefit. Now, there would be a chance you wouldn't be caught - but if you did such a transfer, you would need to send the off market transfer to the registry or your sponsoring broker - if there was say 3 months between the date of the transfer and the share price had soared, not only would the person processing the form get a bit suss, but in the event of an audit, the ATO would pick it up.
So, my answer here is in accordance with the tax act, the answer is no..... The rest I leave up to you!!!!!!!!!!!
Cheers
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Thank very much. Life is tough. We have to be expert on everything even you are paying good money to the accountants, and brokers. They never give you the right answers.reece55 said:
So far the best adviser I have got (10 years ago) about converting my first home to investment property when we bought a new home. A banker advised us that one of us sold the 50% of the property to the other for $1. So we can refinance the property 100% as investment property. Looking back, I'm not sure it is tax avoidance or not. Anyway, it is 10 years ago. Maybe the law was different.
I'm not sure where the 30% was obtained from, but unless you conduct your trading through a company, you would have to pay marginal rates on any trading income earnt.
As far as I can see, the main advantage of being classed as a trader is that you can deduct losses from any other income. Do more research into having no job and having to be a trader, that doesnt't sound right to me, so maybe talk to another accountant and see what they say, or look at the tax office site more.
As far as I can see, the main advantage of being classed as a trader is that you can deduct losses from any other income. Do more research into having no job and having to be a trader, that doesnt't sound right to me, so maybe talk to another accountant and see what they say, or look at the tax office site more.
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