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Tax Consultancy

Tax Consultancy is one of Chiu Consulting鈥檚 favourite activities. It involves working out how best to structure an individual transaction.

For example, when investing in new equipment for your business, you can use an operating company to own the equipment, or use a Family Trust. The advantage of using a Family Trust is it can then rent the equipment back to the company. This protects both your money and your assets.

Tax consequences from individual transactions can vary a lot, so we advise you on how to structure the transaction in such a way that it can be most tax effective for both the payer and receiver. Here are a couple example transactions:

In a business contract where one company is the sole distributor for another company鈥檚 product, the distributor is paid a lump sum and then given ongoing discounts. The ideal structure here would be for one business to claim the lump sum payment as a tax expense, and the other as a Capital Gains Tax Rollover. From a tax perspective, both business sides of the transaction come out looking good.

Another typical case is the decision on whether to buy or lease a vehicle. Both options are good for different people, so we need to find out your exact situation. Those who buy a car or truck can claim depreciation, while those that lease it are able to claim the lease payments. How about selling a business? Is it better for your tax to receive a payment in full, or to be given ongoing payments?

At Chiu Consulting we often make visits out to our clients鈥 businesses to see firsthand how they function and exactly what they鈥檙e doing. This personal approach gives us much better insight, thus informing our Tax Consultancy advice to a deeper level than the majority of other tax agents.