robertj68

I was wondering if someone could provide some advice; When registering a business with the Australian Business Registry is there a legitimate reason why a person would list their business under another person's name (Entity Name) other than their own?
Hypothetical:
A business actually belongs to Jo Bloggs. The entity name is listed as Wendy Smith who is Mr Blogg's defacto. The business is listed as an Individual/Sole Trader business. Wendy Smith is a full-time government employee and does not appear to be directly involved in the business. Any help would be very much appreciated.
Cheers
Rob

1942

Hello Rob,

When registering a business with the Australian Business Registry I do not believe there is a legitimate reason why a person would list their business under another person's name (Entity Name) other than their own.

I just can not see any benefits from it.

What is your thinking here Rob?

robertj68

Thanks for the reply. My thinking is that this person has listed his business under his defacto partner's name to stay under the Tax Office and/or Centrelink radar. I believe that he may be be not claiming his full income to these agencies and that is why the business is in his defacto's name. I was just wondering if he may have done it for legitimate reasons.

FletcherTax

I just hope 'Wendy Smith' is aware of the consequences of such an arrangement. Any income/expenses/complaints/legal issues etc from this business will be associated to her in the personal name. Any tax losses or profits will also need to be declared within her Return on top of any other income she already declares.

Fletcher Tax Accountants

robertj68

Mmm. Interesting. Thanks for that.