Trading Pty Ltd company as Trustee

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(Newbie)Newbie

17 Aug 2023

Hi There,

I have a trading Pty Ltd company which I own 100% of its shares, the Pty Ltd is a Trustee of my family trust company, I would like to buy shares in another company using the Pty Ltd name as Trustee, so all shares will be actually owned by the trust, so I have two questions which are;

Is it allowed to buy the shares with my PTY LTD company as trustee, so Pty Ltd will not be beneficiary?

If the answer is yes, could all Pty Ltd dividends be distributed as trust to trust company beneficiaries?

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Bruce4Tax

(Taxicorn)Taxicorn

22 Aug 2023

can the trading Pty Ltd keep money or it should send it all to the trust?

Company should keep company money in a company bank account,

but trust money should always be in a separate trust bank account - Company ATF trust.

Easier all around if a company which is trustee of a trust does not do anything else.

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Bruce4Tax

(Taxicorn)Taxicorn

18 Aug 2023

Is it allowed to buy the shares with my PTY LTD company as trustee, so Pty Ltd will not be beneficiary?

Yes, so quote trust TFN/ABN to registry, not company TFN.

If the answer is yes, could all Pty Ltd dividends be distributed as trust to trust company beneficiaries?

Yes - trust income must be distributed in terms of the trust deed.

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