Any funds transfer will be between financial institutions, your brokers bank and your bank, so everything is recorded and available for audit. yes you might slip under the radar for a while with small amounts, but is it worth it?
If it gets picked up the ATO will do a trace back and you will get fined, taxed, levied unpaid tax penalties etc etc. Certainly you can set up another entity, Company, Trust what ever and this can have advantages when it comes to tax and distribution of dividends to company directors or trust beneficiaries. But and you need to think carefully here, once the entity is set up, you will have to close your accounts and re-open them from scratch with considerable additional documentation, you cannot just change the name of an account.
Company compliance costs more with ASIC compliance each year, company tax submissions and accounting are more expensive and so it goes on.:eek:
If your additional income is substantial, then it can be worth it, but remaining a sole entity in the early stages is probably preferable, if you are deriving an income from your Forex activities, you can still claim a proportion of your Broadband, office space in your home, computer costs, training courses etc, and if an accountant tells you you can’t get another one! You can also claim loses!
The big thing is becoming anal about your records, record everything and don’t keep it in a shoe box under the bed.
Keep in mind, banks have to submit all interest they pay on accounts to the ATO, what else do they submit that we are not aware of? The ATO is worse than ASIO:cool: when it comes to sticking their noses into things, for all I know an ATO officer might even read this!!!
Unfortunately Forex maybe a money business but it isn’t a cash business, so everything is recorded and trackable. Get used to it and comply with the law and you are not going to get burnt. Sorry mate, you are now playing in the big boys world!
