Oh sorry! I thought you meant that an "awesome company trust set up" was fraud...my bad.
No. But they would probably have a lot of tax write offs that reduce their taxable income.
I own a small business and trust me we don't get many " perks" I suppose it depends what kind if business you have but it seems quite silly to pay yourself a low wage just to claim a government benefit? It would all come out at tax time anyway if their company made a profit and as my accountant says you can try and "claim" anything but if you get audited you will get found out and heavily fined if you can't prove these large expenses were legit - I always "steal" the office toilet paper and paper towels for home but that's about it!!
I do have friends who own restaurants and they pretty much buy all their food and drinks for their personal home on the business which would be great but at the end of the day they are still the ones paying out the money anyway and working 7 days for it
What " note to self " described is what I am talking about. Where the business owner only pays themselves a small wage so they can claim all the benefits from the govt. Depending on how the business is set up it is legal as far as I know and I am talking about large profit businesses not small ones.
Last edited by lulu 2; 07-09-2013 at 19:09.
For the sole traders/partnerships it does come down to the creative bookkeeping. This in turn depends on how invoices from suppliers are worded as to how they could be claimed to claim deductions that aren't real.
In my experience it is actually quite difficult for small business owners to cheat - especially with the threat of audits hanging over us.
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