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James Millar
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bb1, post: 214396, member: 53375 wrote:
Hi James, yes they were my concerns as well, and had already decided not to go down that path, if she suggested it I assumed it was dodgy.

As usual thanks for your help

Interesting I also got a reply from my accountant, apparently they have internet overseas as well, bit sad that he is answering my emails on holidays though, dedication I guess. And he mentioned the same things as well as the possibility of super ($450 income per month), register with work cover, although maybe not have to pay a fee. plus we can’t suddenly pay say 3K this months without upsetting the apple cart, and if we back paid it over the year, it would look dodgy as we would have to adjust our BAS’s.
Oh plus of course if we don’t actually hand over the cash (which was the bit I edited out of the original email), in a couple of years time D could come and say, well where is it.

I agree with your sentiment Bert. It can be done and in some cases is either completely legit or at least quasi legit. However in cases where its clearly contrived then I’d suggest the risk to everyone is too great.

It comes back to the two elements of our mission statement. The first is to improve your wealth by minimising tax. The second element is to reduce your financial risk by minimising your exposure to tax non compliance penalties. That second element is very important. There is no point paying an accountant good money just because they always tell you what you want to hear (ie yes you can claim it!).

We know the boundaries and the limits and it seems you have a good understanding as well. If in doubt take the high road and sleep easy.

Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900