Hi All,
I am hoping someone is able to clarify this one for me as I am confused over it ...
Scenario
Company A is setup to:-
1. manage client money and invest it various trading activities and share in a profit share arrangement
2. property build/development and sale (never rentals)
Questions
1. how is the company classified and what tax rate would apply to profits? small comp rate or full 26% rate?
2. are client payments under profit share allowable as an expense and then corp tax is calculated or are company profits calculated and client returns are distributed post tax?
confused...
thks
I am hoping someone is able to clarify this one for me as I am confused over it ...
Scenario
Company A is setup to:-
1. manage client money and invest it various trading activities and share in a profit share arrangement
2. property build/development and sale (never rentals)
Questions
1. how is the company classified and what tax rate would apply to profits? small comp rate or full 26% rate?
2. are client payments under profit share allowable as an expense and then corp tax is calculated or are company profits calculated and client returns are distributed post tax?
confused...
thks
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