khazun33

Hi All,I can not find any information online about Australian Holding Companies (if that is the right term) and was wondering if anybody can help me. I am at the stage where I am moving over to the Company Corporate Structure, but need to incorporate several names.I will need to have it so that my main business name (already a company) owns each new company I am founding - I understand how to do this. The top level named company will be dormant and simply used to hold the equity in each individual venture I am in.I can find no information online (for prelim info) on how this taxing works. As far as I know, I get taxed twice (on the first level for each individual company, then on the second level as profits are passed up?). Is this correct? Any info is appreciated.

TimF

If each corporation paid taxes on its net income and received no deduction for its dividends paid, then you would be correct that the net profits would be subject to several layers of tax: once at the lowest operating level, then again at the holding company level, and yet again a third time, if/when the holding company paid dividends to you (the shareholder and sole owner of the holding company).But Australia and most industrialized countries have adopted an income tax regimen that avoids this "double-tax problem". The key terms that apply in Australia are "head company" (not "holding company" in Australia) and "consolidated group". A head company (or holding company) that owns many subsidiary operating companies are together referred to as a "consolidated group". In Australia, each of the separate corporations do _not_ pay tax on their separate net profits: instead, all of their income statements are consolidated, and the "head company" of the "consolidated group" pays a single income tax, which is based on the "consolidated income" of the "consolidated group" of corporations.We are attaching a link that will get you started in the Australian income tax regimen for consolidated groups.We recommend that you locate very competent income tax attorneys and accountants to advise you in this extremely complicated area.Best of luck, and hope this helps.