It’s probably not an over-statement to say that a majority of SME businesses in particular are not as tax-effective as they should be.
There are a number of reasons for this, the main one being “tax” accountants simply do not get involved in that kind of “bullet-proofing” or as it’s formerly known “asset protection”.
The vast majority of SME owners will use an accountant merely as a bookkeeper. Although this is changing over recent times since the introduction of GST, an increasing amount of SME owners are beginning to use bookkeepers as a medium between themselves and their accountant.
Clearly the less tax you have to pay, the more profit you will make. Is a certain type of business suitable as a sole trader? Is a different type of business suitable as a company? Should you have trusts? These questions and many others will always depend on the circumstances of the particular business.
If you’re not sure of how effective your business structure is with regards to tax minimisation and asset protection perhaps its time to have a good accountant look at it.