ACC weekly loss of earnings

[p.dath]

Talking of loss making companies.... There is a franchise company in the bay that contracts the installation of their products and servicing to another company.... This company is owned by the same man and charges sweet fuck all for their work and makes huge losses every year, so the government give tax rebates and lower levies.

This would fail the "related parties" test. The mostly likely result is the person involved will get caught in a routine audit. I hope for their sake it is soon. If they don't get caught for an extended period of time, such as 10 years, the back dated compounded penalties could easily exceed the person's net wealth, and they will loose their house, business, car and any other asset they happen to own.

[p.dath]

unfortunately I Paid an accountant who made a few mistakes with setting me up and did not know any better myself.

That's probably a tough call. There are several ways of doing it, none of them wrong, that just achieve different outcomes. A bit like suspension settings ... :-)

[HenryDorsetCase]

This is the simplest and best approach. Unfortunately many small business owners are convinced they can lower their tax and ACC obligations through a series of complex structures. In the end they only wind up reducing their entitlements and increasing their accounting fees.

....and legal fees with any luck

[Akzle]

i thought they'd scrapped the LAQC shit and now did some other bullshit

[Shaun Harris]

That's probably a tough call. There are several ways of doing it, none of them wrong, that just achieve different outcomes. A bit like suspension settings ... :-)

yea, but if I was setting up some ones suspension I would discuss the options and out comes with them, in this case I was never informed of any different options. If I had been I would have deffinately made sure I was Fully insured as such.

[Icemaestro]

As someone who goes out and sees people after their injuries...its got nothing to do with the structure of your company, except for that self employer people can take out cover plus extra, which lets you set a compensation figure. Otherwise, ACC just looks at your income, IE profit if you are a sole trader. I recommend to all self employed people I know that they either do as above suggested and make youself an employee, or take regular drawings of an amount that you could survive if reduced to 80% of.