Tax Time for Aussie Webmasters - GoFuckYourself.com

Nurgle · 07-01-2002, 12:23 AM

Arrggghh its that awful time of the year gathering all that info for the dreaded tax man.

I wish you all the very best during this difficult time.

If any ATO officers are around....

now where have my bank statements got to ?

Nurgle

Marcus · 07-01-2002, 12:50 AM

How bad is the tax rate in Australia?
In the states I usually figure about 30-40% of my money going to taxes.
I think for Canadians it's 50%

Nurgle · 07-01-2002, 01:03 AM

Personal Tax rate goes up to 49% from memory, company tax is 30%

Nurgle

Bake · 07-01-2002, 01:23 AM

Hey Nurgle you make some galleries send me a email at [email protected] and Ill set you up with preferd submiter

Nurgle · 07-01-2002, 01:33 AM

Hey Bake will do

Now that i no longer have a full time job, i can spend some more time doing this properly!!

ohh but that means giving the tax man more money.. arrrghhhhh!

Nurgle

Aussie Rebel · 07-01-2002, 01:50 AM

Do you really pay tax ? Fuck I'm in alot of trouble then I think

=^..^= · 07-01-2002, 02:27 AM

Quote:

Originally posted by Aussie Rebel
Do you really pay tax ? Fuck I'm in alot of trouble then I think

Tax??? what's Tax ???

Firehorse · 07-01-2002, 02:34 AM

sometimes..unless you have a tax problem (situation) you are not making enough money!

Jayson · 07-01-2002, 03:01 AM

One word .... offshore

Its different for US webmasters but being down here and all the sponsors over there, there is a lot of water for your money to have a holiday in in between.

Jayson

Jayson · 07-01-2002, 03:02 AM

Not that my money takes holidays of course or that I condone it in anyway

bhutocracy · 07-01-2002, 03:38 AM

Quote:

Originally posted by Jayson
Not that my money takes holidays of course or that I condone it in anyway

nice save

chodadog · 07-01-2002, 03:48 AM

I don't see why any Australian Webmaster would be paying tax on his earnings from the web. Especially not to the Australian Government. The money is not earned here, and they have no right to tax it. It's also perfectly legal for you to go offshore. There are just some things you have to do to make it legal, so the ATO doesn't come and kick your ass. Ask your accountant.

bhutocracy · 07-01-2002, 03:54 AM

Australian tax rates :

0 - 6000
Nil

6001 - 20 000
17c for each $1 over $6000

20 001 - 50 000
$2380 plus 30c for each $1 over $20 000

50 001 - 60 000
$11 380 plus 42c for each $1 over $50 000

60 000 -
$15 580 plus 47c for each $1 over $60 000

the top tax rate is pretty high... and people say "I get taxed at 50%" or whatever.. but if you earn $60k which only around 15% of people do, as you can see quite clearly it's really only a 25% tax rate.. what really DOES suck over 60k is the incentive to do more work outside of your 9-5 or whatever.. it's quite annoying to get home from a full time job then work till midnight on freelance or whatever and have to hand almost half of that over..
thats why things like family trusts are great.. only costs $800 to set up and you've saved that in tax on your first job..

bhutocracy · 07-01-2002, 03:59 AM

Quote:

Originally posted by chodadog
I don't see why any Australian Webmaster would be paying tax on his earnings from the web. Especially not to the Australian Government. The money is not earned here, and they have no right to tax it. It's also perfectly legal for you to go offshore. There are just some things you have to do to make it legal, so the ATO doesn't come and kick your ass. Ask your accountant.

actually.. ANY money that comes into the country is taxable, it doesn't matter WHERE you've earnt it.. the tax department knows whats getting deposited in your bank account.. and if you're ever audited the old credit card linked to an offshore account won't save you unless you've only bought take away dinners and toilet paper because things won't add up.
It actually costs quite a bit to 100% legally bring your money in without paying tax.. you'll end up paying 10k or more in accountants fees to do it too. (Well thats around what my accountant quoted, im sure you can find a shonky guy for far cheaper.. but these guys are blue chip corporate...)

Aussie · 07-01-2002, 04:00 AM

Quote:

Originally posted by Aussie Rebel
Do you really pay tax ? Fuck I'm in alot of trouble then I think

Yeah I saw a few accountants about this subject.

To sum it all up, if you do it as a hobby - It's TAX FREE !

There are allways loopholes in the Tax System.

bhutocracy · 07-01-2002, 04:03 AM

Quote:

Originally posted by Aussie

Yeah I saw a few accountants about this subject.

To sum it all up, if you do it as a hobby - It's TAX FREE !

There are allways loopholes in the Tax System.

only if you're making a "hobby" amount of money.

Wildman · 07-01-2002, 04:26 AM

Just pay your 30% minus expenses!! (car, dvd, anything vaguely related to a computer).

miss^behaving · 07-01-2002, 04:29 AM

well mine still well and truly qualifys as a hobby.....but i'm takin my bank statement to the accountant anyways.....better safe than sorry

rather be taxed today than fined later

is about all i'll pay anyways

http://fallendomains.com
40,000+ expired names daily plus a TON more.

Jayson · 07-01-2002, 04:31 AM

Quote:

Originally posted by bhutocracy

actually.. ANY money that comes into the country is taxable, it doesn't matter WHERE you've earnt it.. the tax department knows whats getting deposited in your bank account.. and if you're ever audited the old credit card linked to an offshore account won't save you unless you've only bought take away dinners and toilet paper because things won't add up.
It actually costs quite a bit to 100% legally bring your money in without paying tax.. you'll end up paying 10k or more in accountants fees to do it too. (Well thats around what my accountant quoted, im sure you can find a shonky guy for far cheaper.. but these guys are blue chip corporate...)

Not quite any money coming into the country is taxable, there is quite a few exceptions but generally yes.

But the overseas credit card will help alot, you can get them unnamed, overseas companies can have bearer certificates so there is no traceable shareholders etc. The tax office cant get their hands on your overseas cc statements so therefore cant really do much about it particularly if they are not in your name.

Anyway, it costs a bit to set up - 10K is probably a good estimate but then its a bit less each year to run.

Again, not that I actually know any of this, but it what I have heard.

Jayson

Living For Today · 07-01-2002, 04:38 AM

What I want to know is how do they know that the expenses I have are computer related. Buying content and hosting for example. It shows up on the credit card as paypal. How does this prove its an expense?

Also...I went to the bank and asked for statement for the entire financial year. They said because I had a passbook account they cannot give me one as there is no record. I think thats bullshit. There is no way now for me to calculate how much tax I gotta pay .. fukin banks

The Other Steve · 07-01-2002, 04:52 AM

And remember, if you get an expert to do your taxes for you he will find a lot of tax deductions that you may not have thought of. If you drive to the bank to do your banking then you have car expenses, if you lease your computer - that is a tax deduction. If you paid cash for it then you can depreciate it.

Your isp account can be a tax deduction. The fees charged by the bank to deposit overseas cheques are a tax deduction. If you have a room in your house that is only used as an office then that becomes a tax deduction.

We have a phone line that is only used for the computer that is on dial-up - that is a tax deduction. We get our cheques posted to a private box - the private box rental is a tax deduction.

Content purchases can be a tax deduction too. If you buy computer related books they can form a professional library and so become a tax deduction. A subscription to Australian Personal Computer magazine can be a tax deduction.

If you end up owing the taxation department money and can't afford to pay it in a lump sum then the interest that they will charge you as you pay the debt off becomes a tax deduction.

Even the chair you sit on can be a tax deduction.

For the last couple of years my wife has had an accountant use legitimate accounting procedures to turn a nice income into a very small income - so small in fact that last year she received the additional money that the government pays to low income earners.

So if you are in this industry and earning big money then follow Jayson's suggestions but if you are earning less than big money see an accountant and he can legitimately turn it into even lesser money for the tax man.

Oh and btw - accountant's fees are tax deductible

FreeOnes · 07-01-2002, 05:25 AM

It's also tax time in The Netherlands

here the personal tax rates are up to 52% and company rates 35% Some things are pretty bad here in The Netherlands

Ted · 07-01-2002, 05:51 AM

One of the reasons I got into this biz was to reduce stress,
I dont want any stress with the taxman so I pay my taxes.

I generally put a third of my income away as it comes in, and normally after I've seen my accountant I have a nice little chunk of change to play with, that i call my annual bonus

The only catch is this year I've spent it before I got it

Nurgle · 07-01-2002, 10:14 AM

The problem arises quite simply if you want to use your money. Sure its fine leaving offsore, but when i wanted my Rx7, i had the cash handy. The way to do this in Australia is to run a company, then the tax rate is 30% which i can live with.

Hobbies have nothing to do with it

... its money earnt.. the tax department want their share..

The biggest hassle here is the quartely BAS statements.. do any of you do them.. ARRRGHHHHH

Writing the 30% off isnt too bad, content + hosting + computer / ISP, etc etc my car is paid by the company.. i always need to travel interstate to watch the footy .. opps to visit clients!

If you are buying content, always get a TAX Invoice.. you need proof. Paypal receipts dont quite cut it !

hmm still havent found those damn bank statements!

Nurgle

katiepants · 07-01-2002, 04:16 PM

Quote:

Originally posted by Nurgle

The biggest hassle here is the quartely BAS statements.. do any of you do them.. ARRRGHHHHH

Hahahaha yes. Not for being an adult webmaster but I do work part-time as a bookkeeper for a small business and do them every quarter. They're not so bad now but the first one I did was a nightmare. I'm actually heading into work today to do the latest BAS plus other end of financial year shit and I am sooo not in the mood for it. *sigh*

Ted · 07-01-2002, 04:30 PM

The BAS statements suck, I get my accountant to work out the GST, but I nearly always get a GST refund so that's okay.

The way my accountant explained it to me, setting myself up as a company is false economy. I dont remember all the details but you end up paying the same rate of tax at the end of the day.

Jayson · 07-01-2002, 04:51 PM

Setting yourself up as a company only defers the tax as whenever you want to bring it out - its a dividend and taxable at your personal rate less any tax the company has paid.

Now there are some other advantages - you can claim more on things like cars if the company owns them as they can use things like the statutory method of record keeping so they dont have to do log books etc, and the least amount you can claim as business is 74% even if you never use the car for business.

Also, by leaving the money you dont need in a company you can potentially reduce tax by hoping the tax rate is lower when you do eventually pull it out, but on the other hand it could be higher too.

Jayson

DISCLAIMER: The above statement is not intended to represent advice in way. Independent expert opinions should be obtained taking into account your own circumstances (or whatever else these silly disclaimers you see everywhere are meant to say)

phogirl69 · 07-01-2002, 05:16 PM

Can you really write off a car as a business expense? I work from home, and it takes me 5 min to drive to the post office and Bank of America.....

Would be cool if I can buy a new car and write it off as a business expense

Nurgle · 07-01-2002, 11:02 PM

Deferring the tax is exactly what having a company does.. but also remember you may not necessarily need to live off a high income, so if you pay yourself from the company, your tax rate will still be low, not the damn 49 odd %.

+ easier to come up with deductions etc

Its working for me at the moment, the money it costs to start up + maintain have been recovered many times over!

Nurgle

umm what Jayson said

DISCLAIMER: The above statement is not intended to represent advice in way. Independent expert opinions should be obtained taking into account your own circumstances (or whatever else these silly disclaimers you see everywhere are meant to say)

kmanrox · 07-01-2002, 11:12 PM

fuck tha po-lice!!

ooops sry, dunno where that came from

LAJeff · 07-01-2002, 11:56 PM

Have you guys ever looked at the IRS Tax Code Book ?
The law of taxes layed out for USA.

In the 1099 it say anyone that is "Liable" to pay taxes must pay.

Now if you look in the tax code under Liabily for taxes there is no mention of Income tax.

Its say that the Secretary of the Tresurary has to send you a notice of demand for payment, but the Secretary never does.
But the irs will make you think that the Sec. did send this notice out. Its a total con and the american public is the victum.

Next time you see an IRS agent, ask them to show you the Statue that makes you Liable to pay income tax, they cant !

bhutocracy · 07-02-2002, 01:21 AM

Quote:

Originally posted by Nurgle
Deferring the tax is exactly what having a company does.. but also remember you may not necessarily need to live off a high income, so if you pay yourself from the company, your tax rate will still be low, not the damn 49 odd %.

+ easier to come up with deductions etc

Its working for me at the moment, the money it costs to start up + maintain have been recovered many times over!

Nurgle

umm what Jayson said
DISCLAIMER: The above statement is not intended to represent advice in way. Independent expert opinions should be obtained taking into account your own circumstances (or whatever else these silly disclaimers you see everywhere are meant to say)

um... with company tax don't you pay 30% and then if you want to pay yourself a wage from the company (remembering it's a seperate entity) you get taxed at the personal rate on top of that? thats why you get the company to own your cars computer's etc instead of getting taxed twice?

Jayson · 07-02-2002, 01:50 AM

Correct, if you pay yourself a wage from the company you would be taxed at your personal rate of tax, but your wages are an expense and therefore no company tax payable on your wage amount.

If on the other hand you pay yourself a dividend from the company then you pay tax at your personal rate on the dividend amount but more than likely the company would also issue you with franking credits for the amount of tax it has paid on the dividend to offset any tax you owe.

And in the last couple of years it has changes so that if the franking credit is greater than the amount of tax you owe you will get the difference back whereas you used to forfiet excess franking credits.

Jayson

Nurgle · 07-02-2002, 02:05 AM

Quote:

Originally posted by bhutocracy

um... with company tax don't you pay 30% and then if you want to pay yourself a wage from the company (remembering it's a seperate entity) you get taxed at the personal rate on top of that? thats why you get the company to own your cars computer's etc instead of getting taxed twice?

yeah what Jayson said.. i think we should get Jayson as the local Australian webmaster tax consultant... looks like you may have a market ready for you mate!

Nurgle

Jayson · 07-02-2002, 02:26 AM

Probably not a good idea, always best to get someone who is legally able to provide advice.

I am up with most things but I dont stay on top of it these days like I used to.

Nurgle · 07-02-2002, 07:54 AM

Agreed.. i couldn't live without my accountant! Anyways.. i got better things to do than count money.... SPEND IT!!!

Nurgle

RW316 · 07-02-2002, 08:13 AM

dam.. must be a pain in da ass for you aussies

07-01-2002, 12:23 AM	#1
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	Tax Time for Aussie Webmasters Arrggghh its that awful time of the year gathering all that info for the dreaded tax man. I wish you all the very best during this difficult time. If any ATO officers are around.... now where have my bank statements got to ? Nurgle

07-01-2002, 01:23 AM	#4
Bake Confirmed User Industry Role: Join Date: Jan 2001 Location: Outback of bumfuck Aussie Posts: 5,513	Hey Nurgle you make some galleries send me a email at [email protected] and Ill set you up with preferd submiter __________________ Buy great domains from drunken burned out old webmaster CHEAP bullseyeporn.com art-met.com and more. Learn how to make a easy extra $500 per week

07-01-2002, 02:34 AM	#8
Firehorse Desire it and have it!!! Join Date: Apr 2002 Location: www.fuckwithfire.com ICQ 512915 Posts: 30,767	sometimes..unless you have a tax problem (situation) you are not making enough money! __________________ MySweetEbony

07-01-2002, 03:01 AM	#9
Jayson Confirmed User Join Date: Oct 2001 Location: CZ Posts: 554	One word .... offshore Its different for US webmasters but being down here and all the sponsors over there, there is a lot of water for your money to have a holiday in in between. Jayson __________________ Sapphic Cash - We Do It Right

07-01-2002, 03:02 AM	#10
Jayson Confirmed User Join Date: Oct 2001 Location: CZ Posts: 554	Not that my money takes holidays of course or that I condone it in anyway __________________ Sapphic Cash - We Do It Right

07-01-2002, 12:50 AM	#2
Marcus Confirmed User Industry Role: Join Date: Jul 2001 Posts: 3,472	How bad is the tax rate in Australia? In the states I usually figure about 30-40% of my money going to taxes. I think for Canadians it's 50%

07-01-2002, 01:03 AM	#3
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	Personal Tax rate goes up to 49% from memory, company tax is 30% Nurgle

07-01-2002, 01:33 AM	#5
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	Hey Bake will do Now that i no longer have a full time job, i can spend some more time doing this properly!! ohh but that means giving the tax man more money.. arrrghhhhh! Nurgle

07-01-2002, 01:50 AM	#6
Aussie Rebel Blow Me U Geeks Join Date: Aug 2001 Location: Maximum Security Posts: 5,108	Do you really pay tax ? Fuck I'm in alot of trouble then I think

07-01-2002, 03:48 AM	#12
chodadog Confirmed User Join Date: Apr 2002 Posts: 9,736	I don't see why any Australian Webmaster would be paying tax on his earnings from the web. Especially not to the Australian Government. The money is not earned here, and they have no right to tax it. It's also perfectly legal for you to go offshore. There are just some things you have to do to make it legal, so the ATO doesn't come and kick your ass. Ask your accountant.

07-01-2002, 03:54 AM	#13
bhutocracy Not making A Comeback Industry Role: Join Date: Dec 2001 Posts: 10,218	Australian tax rates : 0 - 6000 Nil 6001 - 20 000 17c for each $1 over $6000 20 001 - 50 000 $2380 plus 30c for each $1 over $20 000 50 001 - 60 000 $11 380 plus 42c for each $1 over $50 000 60 000 - $15 580 plus 47c for each $1 over $60 000 the top tax rate is pretty high... and people say "I get taxed at 50%" or whatever.. but if you earn $60k which only around 15% of people do, as you can see quite clearly it's really only a 25% tax rate.. what really DOES suck over 60k is the incentive to do more work outside of your 9-5 or whatever.. it's quite annoying to get home from a full time job then work till midnight on freelance or whatever and have to hand almost half of that over.. thats why things like family trusts are great.. only costs $800 to set up and you've saved that in tax on your first job..

07-01-2002, 04:26 AM	#17
Wildman Confirmed User Join Date: Feb 2001 Location: Melbourne, Australia Posts: 326	Just pay your 30% minus expenses!! (car, dvd, anything vaguely related to a computer).

07-01-2002, 04:29 AM	#18
miss^behaving Confirmed User Join Date: May 2002 Location: Australia Posts: 213	well mine still well and truly qualifys as a hobby.....but i'm takin my bank statement to the accountant anyways.....better safe than sorry rather be taxed today than fined later is about all i'll pay anyways http://fallendomains.com 40,000+ expired names daily plus a TON more.

07-01-2002, 04:38 AM	#20
Living For Today Confirmed User Join Date: Feb 2002 Location: Brisbane, Australia Posts: 3,970	What I want to know is how do they know that the expenses I have are computer related. Buying content and hosting for example. It shows up on the credit card as paypal. How does this prove its an expense? Also...I went to the bank and asked for statement for the entire financial year. They said because I had a passbook account they cannot give me one as there is no record. I think thats bullshit. There is no way now for me to calculate how much tax I gotta pay .. fukin banks

07-01-2002, 04:52 AM	#21
The Other Steve Confirmed User Join Date: Dec 2001 Location: Sunny Queensland - perfect one day and better the next. Posts: 2,106	And remember, if you get an expert to do your taxes for you he will find a lot of tax deductions that you may not have thought of. If you drive to the bank to do your banking then you have car expenses, if you lease your computer - that is a tax deduction. If you paid cash for it then you can depreciate it. Your isp account can be a tax deduction. The fees charged by the bank to deposit overseas cheques are a tax deduction. If you have a room in your house that is only used as an office then that becomes a tax deduction. We have a phone line that is only used for the computer that is on dial-up - that is a tax deduction. We get our cheques posted to a private box - the private box rental is a tax deduction. Content purchases can be a tax deduction too. If you buy computer related books they can form a professional library and so become a tax deduction. A subscription to Australian Personal Computer magazine can be a tax deduction. If you end up owing the taxation department money and can't afford to pay it in a lump sum then the interest that they will charge you as you pay the debt off becomes a tax deduction. Even the chair you sit on can be a tax deduction. For the last couple of years my wife has had an accountant use legitimate accounting procedures to turn a nice income into a very small income - so small in fact that last year she received the additional money that the government pays to low income earners. So if you are in this industry and earning big money then follow Jayson's suggestions but if you are earning less than big money see an accountant and he can legitimately turn it into even lesser money for the tax man. Oh and btw - accountant's fees are tax deductible __________________ Left intentionally blank ... just like my brain

07-01-2002, 05:25 AM	#22
FreeOnes Confirmed User Join Date: Jul 2001 Location: The Netherlands Posts: 3,400	It's also tax time in The Netherlands here the personal tax rates are up to 52% and company rates 35% Some things are pretty bad here in The Netherlands

07-01-2002, 05:51 AM	#23
Ted Confirmed User Join Date: Nov 2001 Posts: 830	One of the reasons I got into this biz was to reduce stress, I dont want any stress with the taxman so I pay my taxes. I generally put a third of my income away as it comes in, and normally after I've seen my accountant I have a nice little chunk of change to play with, that i call my annual bonus The only catch is this year I've spent it before I got it

07-01-2002, 10:14 AM	#24
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	The problem arises quite simply if you want to use your money. Sure its fine leaving offsore, but when i wanted my Rx7, i had the cash handy. The way to do this in Australia is to run a company, then the tax rate is 30% which i can live with. Hobbies have nothing to do with it ... its money earnt.. the tax department want their share.. The biggest hassle here is the quartely BAS statements.. do any of you do them.. ARRRGHHHHH Writing the 30% off isnt too bad, content + hosting + computer / ISP, etc etc my car is paid by the company.. i always need to travel interstate to watch the footy .. opps to visit clients! If you are buying content, always get a TAX Invoice.. you need proof. Paypal receipts dont quite cut it ! hmm still havent found those damn bank statements! Nurgle

07-01-2002, 04:30 PM	#26
Ted Confirmed User Join Date: Nov 2001 Posts: 830	The BAS statements suck, I get my accountant to work out the GST, but I nearly always get a GST refund so that's okay. The way my accountant explained it to me, setting myself up as a company is false economy. I dont remember all the details but you end up paying the same rate of tax at the end of the day.

07-01-2002, 04:51 PM	#27
Jayson Confirmed User Join Date: Oct 2001 Location: CZ Posts: 554	Setting yourself up as a company only defers the tax as whenever you want to bring it out - its a dividend and taxable at your personal rate less any tax the company has paid. Now there are some other advantages - you can claim more on things like cars if the company owns them as they can use things like the statutory method of record keeping so they dont have to do log books etc, and the least amount you can claim as business is 74% even if you never use the car for business. Also, by leaving the money you dont need in a company you can potentially reduce tax by hoping the tax rate is lower when you do eventually pull it out, but on the other hand it could be higher too. Jayson DISCLAIMER: The above statement is not intended to represent advice in way. Independent expert opinions should be obtained taking into account your own circumstances (or whatever else these silly disclaimers you see everywhere are meant to say) __________________ Sapphic Cash - We Do It Right

07-01-2002, 05:16 PM	#28
phogirl69 Confirmed User Join Date: Jul 2001 Posts: 3,330	Can you really write off a car as a business expense? I work from home, and it takes me 5 min to drive to the post office and Bank of America..... Would be cool if I can buy a new car and write it off as a business expense

07-01-2002, 11:02 PM	#29
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	Deferring the tax is exactly what having a company does.. but also remember you may not necessarily need to live off a high income, so if you pay yourself from the company, your tax rate will still be low, not the damn 49 odd %. + easier to come up with deductions etc Its working for me at the moment, the money it costs to start up + maintain have been recovered many times over! Nurgle umm what Jayson said DISCLAIMER: The above statement is not intended to represent advice in way. Independent expert opinions should be obtained taking into account your own circumstances (or whatever else these silly disclaimers you see everywhere are meant to say) Last edited by Nurgle; 07-01-2002 at 11:03 PM..

07-01-2002, 11:12 PM	#30
kmanrox aka K-Man Industry Role: Join Date: Oct 2001 Location: The Gutter Posts: 29,292	fuck tha po-lice!! ooops sry, dunno where that came from __________________ Crypto HODLr Crypto mining Angel investor

07-01-2002, 11:56 PM	#31
LAJeff Registered User Join Date: Feb 2002 Location: LA, Calf. Posts: 54	Have you guys ever looked at the IRS Tax Code Book ? The law of taxes layed out for USA. In the 1099 it say anyone that is "Liable" to pay taxes must pay. Now if you look in the tax code under Liabily for taxes there is no mention of Income tax. Its say that the Secretary of the Tresurary has to send you a notice of demand for payment, but the Secretary never does. But the irs will make you think that the Sec. did send this notice out. Its a total con and the american public is the victum. Next time you see an IRS agent, ask them to show you the Statue that makes you Liable to pay income tax, they cant !

07-02-2002, 01:50 AM	#33
Jayson Confirmed User Join Date: Oct 2001 Location: CZ Posts: 554	Correct, if you pay yourself a wage from the company you would be taxed at your personal rate of tax, but your wages are an expense and therefore no company tax payable on your wage amount. If on the other hand you pay yourself a dividend from the company then you pay tax at your personal rate on the dividend amount but more than likely the company would also issue you with franking credits for the amount of tax it has paid on the dividend to offset any tax you owe. And in the last couple of years it has changes so that if the franking credit is greater than the amount of tax you owe you will get the difference back whereas you used to forfiet excess franking credits. Jayson __________________ Sapphic Cash - We Do It Right

07-02-2002, 02:26 AM	#35
Jayson Confirmed User Join Date: Oct 2001 Location: CZ Posts: 554	Probably not a good idea, always best to get someone who is legally able to provide advice. I am up with most things but I dont stay on top of it these days like I used to. __________________ Sapphic Cash - We Do It Right

07-02-2002, 07:54 AM	#36
Nurgle Confirmed User Join Date: Feb 2001 Location: Land of OZ Posts: 2,337	Agreed.. i couldn't live without my accountant! Anyways.. i got better things to do than count money.... SPEND IT!!! Nurgle

07-02-2002, 08:13 AM	#37
RW316 Confirmed User Join Date: Jun 2002 Posts: 1,103	dam.. must be a pain in da ass for you aussies