In the lead up to 30 June 2021, we want you to know why using a "bucket company" can be a great strategy for saving tax on trust profits distributed.
Do you have a Discretionary or Family Trust that generates profits? If yes, then this strategy may apply to you.
A "bucket company" allows you to "cap" the tax on profits distributed by a trust to 30% or 26%. This is much less than the individual top marginal rate of 47%!
The cash in a "bucket company" can be used to invest in shares, property, or to lend to other entities at a specific interest rate.
But: You need to discuss this with us BEFORE you do it. There are different tax laws that affect the use of this strategy, and whether your "bucket company" can use a tax rate of 30% or 26%.
As your Accountants, we are very aware of these tax laws and can make this easy for you.
Contact us today! The sooner we get started, the sooner we can help you save tax using a "Bucket Company" - well before 30 June 2021 for enough time to implement tax saving strategies.