Forum Archive Index - October 2003

["Morgy 40" <morgy40@hotmail.com>]

Murray

Thanks for that, that clarifies the position I thought I was in.
Perhaps to the moderator of this forum, that link to Murrays email, i.e 
classification of investor or trader may be a good one to go in the "Go 
learn shares " archive.

Whats the saying about old cricketers, they never die they just start giving 
the raised finger !

Regards


Morgy



>From: "McLean & Co" <mcleanco@inhb.co.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: [sharechat] Tax Structure
>Date: Sun, 5 Oct 2003 09:07:37 +1300
>
>Hi Morgy and regards
>
>Pleased to hear you get something out of the monthly newsletter. If anyone 
>else is interested you can apply at the website below.   Nowadays with 
>cricket I'm into umpiring-  not some many aches and pains with that but 
>still enjoyable and keeping involvement with the cricket fraternity.
>
>fntradingsolutions has suggested a structure which seems to have some 
>complexity and would obviously require some knowledge of tax law in another 
>country and would probably require you to employ a tax professional in that 
>country, and I cannot comment on his suggestion as I havent got involved in 
>such structures.
>
>However if you want to simplify matters and due to the fact that most of us 
>build up a greater understanding of our local tax law than overseas tax law 
>and thus can react  accrdingly with the benefit of this greater knowledge,  
>and conduct your affairs within NZ, as most NZers do, then the obvious 
>structure is one that will minimise your tax, bearing in mind the current 
>tax rates which are as follows:
>
>If you operate as a Self Employed Entity and TaxPayer:
>
>Taxable Income (which includes profit from sharetrading and of course all 
>other taxable income derived by the taxpayer) under $38000-  tax rate 19.5% 
>which reduces with rebates for itaxable ncome less than $38000
>
>Taxable Income $38000-$60000-  33% tax rate
>
>Taxable Income over $60000 - 39% tax rate
>
>Company Entity and Taxpayer
>
>33% tax rate from the first dollar
>
>There is the ability to pay a "shareholder salary" to shareholders within a 
>company and thus this reduces the taxable income of the company and 
>therefore the income which is taxed at 33%,  and on which individual 
>shareholders are taxed at their personal tax rates (which could therefore 
>be 19.5% or less) within this structure.
>
>Also , by using this structure and if the business has substantial taxable 
>profits then the maximum tax rate can be structured to be 33% (rather than 
>39% if all the business affairs are conducted within a self employed 
>entity).
>
>
>By the way, not everything trading in shares can be deemed a trader for tax 
>purposes.   The following article talks about this:
>
>www.mcleanandco.co.nz/Page59.htm
>
>
>
>Murray McLean
>McLean and Co, Chartered Accountants
>P.O. Box 10, Clive, New Zealand 4152
>133 Main Road, Clive, New Zealand 4152
>Tel. No.  (06) 8700952
>Fax No.  (06) 8700955
>Email murray@mcleanandco.co.nz,  murray@taxreturns.co.nz,   
>murray@taxreturnz.co.nz
>Websites www.mcleanandco.co.nz,   www.taxreturns.co.nz,   
>www.taxreturnz.co.nz
>
>Chartered Accountants offering assistance with business startup and advice, 
>taxation and accounting services to small business, self employed persons 
>and rental property owners and audits for not for profit organisations.   
>Members of the Chartered Accountants of New Zealand and the Taxation 
>Institute of New Zealand.
>
>
>   ----- Original Message -----
>   From: Morgy 40
>   To: sharechat@sharechat.co.nz
>   Sent: Saturday, October 04, 2003 8:54 PM
>   Subject: [sharechat] Tax Structure
>
>
>   Murray
>
>   What do you think would be the best way to structure a trading business 
>for tax effectiveness, we might as well have some specialist advice, by the 
>way I enjoy your monthly newsletter, always get something out of it. You 
>would be tuning up for cricket season would you ?.
>
>   Regards
>
>
>
>   Morgy
>
>
>
>   >From: "McLean & Co"
>   >Reply-To: sharechat@sharechat.co.nz
>   >To:
>   >Subject: Re: [sharechat]
>   >Date: Sat, 4 Oct 2003 19:28:53 +1200
>   >
>   >33% tax rate for a trust Allan
>   >
>   >
>   >
>   >----- Original Message -----
>   >From: "allan russell"
>   >To:
>   >Sent: Saturday, October 04, 2003 5:49 PM
>   >Subject: Re: [sharechat]
>   >
>   >
>   > > I feel you are spot on with the ANZ, they also give good back up 
>service,
>   > > and that helps when you have questions, and dont be scared to ask if 
>money
>   > > is at stake.
>   > > Tax, I pay tax and am happy to pay it. If I dont Im not makeing 
>money and
>   >Im
>   > > sad not to be paying it.
>   > > 2 stories to illistrate a point, on a personal level, I watched a 
>family
>   > > member recieve free emergency care in hospital one year, I would 
>have at
>   >the
>   > > time signed away all I owned had it been nessary to continue the 
>care, I
>   > > have recieved value for money for taxes.
>   > > Story 2, a friends young son, working under the table, knows it all,
>   >doesnt
>   > > pay tax you see, so clever.
>   > > injured himself on the job, and now is off work and cant get acc, 
>for 80%
>   >of
>   > > earnings he "never recieved".The ird can be a little inconsistant 
>when
>   > > deciding if you are a trader in shares, or not, and once painted 
>with the
>   > > trader brush you are stuck with it.
>   > > To avoid it a trust can be formed that pays a 30% tax rate, but your
>   >future
>   > > dealings, are seperate from the trust.
>   > > Allan.
>   > >
>   > >
>   > >
>   > > >From: "Matt c"
>   > > >Reply-To: sharechat@sharechat.co.nz
>   > > >To: sharechat@sharechat.co.nz
>   > > >Subject: [sharechat]
>   > > >Date: Fri, 03 Oct 2003 19:57:48 +1200
>   > > >
>   > > >Hi, I'm abit of a novice investor, not yet in my twenties.
>   > > >
>   > > >I was just wondering if we in NZ can take advantage of the current 
>high
>   >$nz
>   > > >dollar. (which markets are best to invest in currently etc)
>   > > >
>   > > >Also, which is the commonly accepted best online broker?
>   > > >From the fees I saw ASB seemed the best and Direct the worst.
>   > > >
>   > > >Does anyone have an opinion on fletcher forest shares at their 
>current
>   > > >price of around $1.30? I brought in at $1.10
>   > > >
>   > > >Ah and approximately how often per year can you buy/sell shares 
>before
>   >the
>   > > >IRD recognises you as a trader rather than an investor?
>   > > >
>   > > >Help with any of my questions would be great, thanks.
>   > > >
>   > > >_________________________________________________________________
>   > > >Check out the Xtra gaming servers at http://xtramsn.co.nz/gaming !
>   > > >
>   > > >
>   > >
>   > 
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