Trust Circular #15 (Part 3): Engage a Trust To Minimize Company Tax on Profits
Hi Folks
Mark Pytellek here again, of Private Trust Makers (PTM), the makers of your Trust.
Here’s the next chapter of the Non Registered Trust story on how you can engage your Trust to favor your financial future.
To all our valued Trust clients, including the most recent new ones, welcome to our monthly free educational circular as part of our program to educate and upskill our Trust clients so they learn to competently use their Trust without having to run to and rely on lawyers or accountants, thus saving you time and money. The earlier Trust Newsletters are available, free, on our website www.solutionsempowerment.org within the “Non Registered Trust” section under the tab “Resources”
Today’s subject matter topic is “Engage a Trust To Minimize Company Tax on Profits”.
Notice 1 the information delivered below is not legal ad-vice.
Notice 2 I am not a practicing lawyer nor a Certified Accountant.
Notice 3 the information delivered below is strictly private and confidential, delivered for your personal benefit
Engage a Trust To Minimize Company Tax on Profits
Worldwide folks who are in business are searching for ways to either minimize or eliminate company tax. It’s a subject matter worthy of a book in itself.
There are many legitimate ways to minimize and even eliminate company tax.
We list a few non exhaustive options below.
- Cashflow (Otherwise known as “Income” in the public realm) splitting so as to minimize tax and protect cashflow from being taxed
- Under an oral or written agreement or contract, a Trust may be engaged by the company as an agent, sub agent, contractor, subcontractor, partner, consultant or other to:
- Conduct transactions with it – purchase from, sell to,
- Invoice for services rendered, consultancies conducted or goods purchased,
- Hire services, goods, labour, from or out to, the company so as to issue invoices that are utilized for tax deduction purposes
- To gift money, services, goods, assets, property or other to the Trust for either or both of, tax purposes and/or asset protection
Example “3”: Trust is engaged by the company for the purpose of receiving gifts, monetary donations, services, goods, assets, property or other for either or both of, tax purposes and/or asset protection
There are many uses for companies engaging Trusts for the purpose of reducing tax liabilities.
Examples include:
- Generally, gifts attract tax exemption status. Hence when completing a company/business profit and loss statement, by apportioning a portion of what otherwise would be declared as profit, may be gifted to the Trust thereby reducing the amount of declarable profit and hence the amount of tax required to be paid.
We are unaware of any upper limit to the amount of funds that can be gifted. For that purpose, it is pertinent to approach a qualified accountant dealing with company/business profit and loss statements.
- Donations may regarded similarly to gifts but appear to have a lesser standing as a tax exemption than does gifting.
- During periods of solid and substantial cashflow surpluses and profits, to purchase services, goods, assets, property at inflated prices that can inflate expenses, reduce profit and hence tax
Likely there are more strategies than these but as the writer doesn’t trade or conduct business from the public realm, personal experience is limited.
The main objective is to make profitability of the company/business “appear” to be lower than it really is in reality so less is drawn to the tax office.
We hope this information was also useful and beneficial to you.
Look for the next Trust circular for further insights into practical and exciting applications of the use of your Trust.
Kind Regards,
Mark Pytellek
Principal
Private Trust Makers
in conjunction with
Solutions Empowermentment
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