Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Preferred business structure
01-06-2011, 10:26 PM
Post: #1
Preferred business structure
Dear All,

I need help with some tax issue. I am a salaried individual and I intend to start a part-time business related to trainings. Normally, if I receive any amount from trainings, i will have to show these as 'income from other sources' in my return and as such my applicable tax rate (based on my total income) will be applied to it. I will not be able to claim any expenses incurred to generate this income, since no deduction is allowed.

In order to have some tax saving, I intend to run it through an AOP. By having income in AOP, the AOP will be able to deduct its expenses and then will be required to pay tax on the net profit. After the tax is paid, any amount paid by the AOP to its partner (myself) will be exempt from tax.

My question, with reference to above situation is that if I continue to work in my individual capacity, can I claim expenses for e.g. salary of any person whom I hire, expenses paid to third parties (for e.g. on food items for the training) etc.

Any guidance will be really appreciated.

Regards,
Saad
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)