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  • #993115
    fanix
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    I have a question:

    One of my close trustworthy friends asked if he could do a transaction through my Pty Ltd Company. Basically this is what he explained to me:

    He needs to transfer some money to the USA for a project he is currently working on. Its basically to pay another company based in the USA for consulting and reporting services. He said the transaction is essentially a “passthrough” transaction. He said the transaction will work like this:

    1. He transfers x amount into my Business account.
    2. He then issues me an invoice for the total amount transferred (minus a processing fee, which is basically a kick back to me for helping him out, say $2000).
    3. I then process the invoice through my books and then make payment for the amount on the to a local forex company within Australia, who will then do the international transfer to the USA. I then get to keep the processing fee as a favour to me.

    He said that there should be no tax implications for this transaction as its basically just a passthrough. I just wanted some advise on this and to check if this is legal and that nothing dodgy is going on here?

    Again, this is a close friend who is extremely trustworthy, and also has a MBA so he isn’t some dumb nut. But of course he is no tax accountant so I dont want to get burned down the track with the ATO.

    Any advise much appreciated.

    #1189796
    bb1
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    My question is why cant he do it himself ???????

    My answer, Don’t do it !!!! He may have an MBA, he may be a friend,

    Sorry run

    #1189797
    fanix
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    bb1, post: 222693, member: 53375 wrote:
    My question is why cant he do it himself ???????

    My answer, Don’t do it !!!! He may have an MBA, he may be a friend,

    Sorry run
    For one, he doesn’t have his own company. He is employed.

    #1189798
    Rowan@quaotic
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    Seems he should do it himself. It could be seen as money laundering because it seems like he could be doing it to avoid the money being reported to AUSTRAC.

    #1189799
    bb1
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    fanix, post: 222704, member: 5216 wrote:
    For one, he doesn’t have his own company. He is employed.

    An individual (non company), can transfer money OS.

    A $2000 Processing fee is huge, even a bank can transfer LARGE sums of money for an individual far cheaper than that.

    If he is planning to pay you 2000.00, he is talking about BIG dollars.

    I don’t know but the alarm Bells are not just ringing they are bellowing out to me.

    #1189800
    MyGreatIdea
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    You’re asking for advice, which tells me you don’t feel comfortable doing this anyway, otherwise you simply would.

    Say no.

    Wendy :)

    #1189801
    NickKaro
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    Your friend can setup his own company and business account for much less than $2,000….

    #1189802
    ThexArm
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    Simple question to you… how are you going to show the money coming into your business account? Loan? Capital? basically you can’t reconcile your books without fudging!!! NO, don’t do it!!!

    #1189803
    Petemac
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    I can’t see any legitimate reason why he would need to do this. To me it sounds like he is trying to transfer ‘cash money’ which he can’t account for, hence using your company, which I would stay away from it.

    Cheers

    #1189804
    LucasArthur
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    anyone unwilling to do a transfer of this nature on their own if a large sum appears to be trying to avoid something.. Be it fraud, scam, terrorism, or other extremity.. i am not saying it is, although in todays world sending money from one to another as a ‘go between’ for someone else is a little out of the ordinary – things are just ‘easier’ to do yourself now days.. and if he has an MBA (note not an automatic tick that he is clever) he should also know how to process something like this himself/herself.

    When it sounds to good to be true, generally is..

    There could also be another party conducting the scam that your friend is not aware of.. What if your friend gets scammed and loses his money and then tries to come back to you for it, will you still be friends if this occurs.

    So many terrible things cross my mind here.. RUN!

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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