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A company is just a conduit that people use to hold assets.

Imagine this situation, You and I both own apartments in the same building, you own apartment A and I own apartment B, but you happen to have bought yours under the name of your company while I own mine under my personal name.

If at the end of the year we have both made $18,000 on our identical properties, I get to keep the entire $18,000 tax free due to my tax free threshold, where as you will have to pay $5,400 company tax.

Me = $18,000 (tax free)
you = $12,600 (30% tax)

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Even though we invested in identical properties, and had the same investment return, and both have large super incomes etc

I got 42% more than you simply because you weren't allowed to take advantage of the tax free threshold where I could.

How does that make sense? why only attack people holding assets in company structures?

<blockquote data-quote="Value Collector" data-source="post: 980505" data-attributes="member: 57577">A company is just a conduit that people use to hold assets.Imagine this situation, You and I both own apartments in the same building, you own apartment A and I own apartment B, but you happen to have bought yours under the name of your company while I own mine under my personal name.If at the end of the year we have both made $18,000 on our identical properties, I get to keep the entire $18,000 tax free due to my tax free threshold, where as you will have to pay $5,400 company tax.Me = $18,000 (tax free)you = $12,600 (30% tax)----------------Even though we invested in identical properties, and had the same investment return, and both have large super incomes etcI got 42% more than you simply because you weren&#039;t allowed to take advantage of the tax free threshold where I could.How does that make sense? why only attack people holding assets in company structures?</blockquote>

[QUOTE="Value Collector, post: 980505, member: 57577"] A company is just a conduit that people use to hold assets. Imagine this situation, You and I both own apartments in the same building, you own apartment A and I own apartment B, but you happen to have bought yours under the name of your company while I own mine under my personal name. If at the end of the year we have both made $18,000 on our identical properties, I get to keep the entire $18,000 tax free due to my tax free threshold, where as you will have to pay $5,400 company tax. Me = $18,000 (tax free) you = $12,600 (30% tax) ---------------- Even though we invested in identical properties, and had the same investment return, and both have large super incomes etc I got 42% more than you simply because you weren't allowed to take advantage of the tax free threshold where I could. How does that make sense? why only attack people holding assets in company structures? [/QUOTE]

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