What is Division 7A really all about?
If you have a company then you have probably sat in a meeting with your accountant and heard the phrase ‘that may raise Division 7A issues’. Everyone usually then grumbles and nodes wisely, and moves on… But you may be asking yourself, ‘what the hell is Division 7A all about?’ Glad you asked.
What is a ‘bucket company’ and when do you need one?
The concept of a ‘bucket company’ is used to describe a company into which distributions from a discretionary trust are made to cap the tax rate on the trust’s income to the flat company rate of 30%.