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  • April 24, 2022 at 7:27 am #1235944
    pakmade
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    Hi All,

    I am waiting on confirmation from my account – however as it’s a weekend I’m not sure when he’ll get back to me. I’m curious as to what others have done here.

    We’re setting up a new business with the corporate trustee structure, i.e. XYZ Pty Ltd ATF XYZ Trust.

    I’m curious to know how others with this set-up of a Corporate Trustee and Discretionary Trust has structured their shareholders. From our limited knowledge in the space, it seems to make sense to appoint the Trustee of XYZ Trust as the Shareholder to maximise CGT benefits in the eventual acquisition of the business.

    Beneficially holding them in an individual shareholders name seems to negate any CGT savings (with asset limits).

    Can a corporate trustee company, hold the shares of the corporate trustee company, in its own capacity of Trustee?

    How has everyone else gone about this?

    April 25, 2022 at 8:27 pm #1235947
    Paul – FS Concierge
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    Hi And Welcome to Flying Solo It is great to have you!

    Thank you for joining our community and posting.

    Great question.

    I hope you get an equally great answer here.

    That said, for such a vital question that can have long lasting repercussions, getting paid Accountant advise is the only course of action I can advise.

    Cheers
    ~Paul

    April 28, 2022 at 1:39 pm #1236010
    James Millar
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    Ok it seems you are setting up a new business within a trust structure and that you have opted for a corporate trustee rather than an individual or individuals. Makes perfect sense if its a trading trust.

    The trustee (a company here) does not have a beneficial interest in the assets of the trust so the shareholders of the trustee do not have any entitlement. The only thing those shareholders will do is govern the board of directors of the trustee company which are the main decision makers of the trust.

    Typically you would make those individual shareholders the same directors of the trustee but you do need to consider those shareholdings in terms of their potential control of the board of directors. Thats a management issue not an ownership issue.

    Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900
    April 28, 2022 at 8:04 pm #1236025
    Paul – FS Concierge
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    @jamesmillar, thanks again for your detailed response.

    Cheers

    ~Paul

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