Reply To: Private foundations

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#10046
Beverly Vennik
Participant

Hi – I’m new to this forum, and not terribly impressed with the membership bonus I get with the eBook – which on its own is fairly useless.
However, I’m making enquiries about how much and how exactly I create this Private Trust that doesn’t have a tax file number, ABN or record expenses from income to establish its tax is payable, since the entity supposedly is exempt ( or so the ATO forms seem to indicate ).
Having been through the system as a tax acccountant, we were never trained in the existence of Private Trusts, because all the other types of trusts create big $’s for accountants in creative accounting. Private trusts don’t go through accountants as there’s no audit, reporting or annual returns required.
That’s where KYRGroup are pretty light with info on Self Managed Super funds, as you have to get your books audited (min $400 annual) then lodge your own tax returns – which is another $400 to have compliant software (supposing you know how to use the software). Then the fines are hefty if you don’t follow the Trust Deed – like you have to make sure your investments are sufficiently 3rd party except for the biggest loophole where your super fund can own a business premises, and you can use this business premises for your own business. Of course you’d be paying your super fund the rent !
Cheers

**we’re talking Australian taxation **