1300 784 667 (1300 QUINNS) [email protected]

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advice in easy to
understand language."

"Do you need to restructure
your business in order to
maximise its potential?"

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locations - you come to
us or we come to you."

"Save time and money by
having one firm for all your
legal and accounting needs."

"We can help you on
the path to achieving
your business goals."

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accounting advice."

Service Trust

This is a generic name applied to any type of trust (e.g., discretionary, unit or hybrid) which is being used to provide services to a professional practice or other business entity. It is usually controlled by the owners of the professional practice or business entity. Once in widespread use, their numbers have been significantly diminished by the introduction of TR 2006/2.

Advantages

  • Asset protection
  • Income tax flexibility
  • Wealth accumulation
  • Free up working capital
  • Service fee of up to 45%of practice fees
  • Low risk of tax audit
  • Clear benefits to the practice
  • Commercially based
  • Calculated correctly
  • Arrangement documented

Disadvantages

  • Fail an ATO audit
    • Arrangement not commercially based
    • Not clearly a separate business
    • Inadequate documentation
  • Costs outweigh benefits
  • Not easily understood
  • No specific obligations:
    • Must keep adequate records to explain transactions
  • Extent to which records are kept:-
    • Significance, complexity & materiality of transactions
    • Size of the business

If you would like more information on trust structures and want to learn more about the most appropriate type of trust or trusts for your situation, please click here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.

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The Quinn Group operates Quinn Consultants, Quinn Lawyers, Quinn Financial Planning and Quinn Financial Solutions. The Quinn Group provides related information in regard to legal, accounting and financial planning issues. Liability limited by a scheme approved under Professional Standards Legislation* *other than for the acts or omissions of financial services licensees.