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Old 04-09-2015, 04:10 AM   #5
murg
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Join Date: Jan 2012
Location: Australia
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Quote:
Originally Posted by HarryT View Post
If there is a "loophole" in the law, then the law needs to be changed, but I really don't think that you can blame anyone for minimising their tax bill by entirely legal methods. I strongly suspect that you don't voluntarily pay more tax than you're required to, do you? I pay an accountant to ensure that I pay the minimum amount of tax that the law requires. Every company does.

Company directors have a legal obligation to act in the best interests of their shareholders, and that is generally interpreted as meaning that they have to act to maximize profits. Directors who voluntarily paid more tax than they were obliged to, and by doing so reduced profits and hence shareholder dividends, could be personally liable to prosecution as a result.
Harry, you aren't creating international structures of companies to move the money around. Nor are you loaning money to yourself is multiple jurisdictions.

While the tricks being used are legal, in Australia we have an overriding tax law that says that any tax avoidance scheme that has as it's purpose the avoidance of tax is illegal.
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