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Chris Ellison tax scandal
Hi everyone,
As you’re aware, there’s a lot of news going around how Mineral Resources Chris Ellison is embroiled in a tax scandal.
I haven’t followed it closely. However, can someone kindly give a brief summary of what he did?
Furthermore, how is what Chris Ellison did different to what some of us are doing in minimising taxes such as using an unregistered trust, recognising what we receive as sweat equity and increasing our business expenses to offset income?
Would love to get a clear explanation of this so we all make sure we aren’t in the same situation as Chris Ellison.
Thanks!
God bless,
Brian
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3 Replies
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I had a look at the story from Reuters and it said this.. “billionaire founder Chris Ellison admitted to failing to properly
disclose revenue from his overseas entities to the Australian Taxation
Office on Monday, sending the company’s share price sharply lower.”… Doesn’t that illustrate that he incriminated himself?-
I think what that probably meant was someone tipped off or the ATO decided to delve and found the information. Then Chris Ellison got cold feet and decided to make a deal with the ATO to decrease the penalty by 80% in return for Chris to declare those revenues and pay back the taxes.
So in his case where he used different vehicles to not need to report his revenues, how may that apply to those who got unregistered trusts, invoice their public entities and send the funds to the trusts and thereby have a tax deductible expense without the reciprocal declarable “income”.
Simply trying to poke holes and see how we can mend them or make them holeproof.
God bless,
Brian
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This is why it is key to learn how to competently hold our position with any entity we may have set up for our protection. Mark has wonderful strategies for this as he has had to do this many times himself.
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