It was the blunt but ingenious billionaire Kerry Packer who memorably explained to a stunned parliamentary committee exactly how the tax system works.
The late business tycoon said, “I'm not evading tax in any way, shape, or form. Now, of course, I'm minimising my tax, and if anybody in this country doesn't minimise their tax, they want their heads read, because, as a government, I can tell you you're not spending it that well that we should be donating any extra now.”
This classic summary of how things really work on the ground is just as accurate today as it was 33 years ago, and it'll probably remain accurate for many decades to come.
So, have you ever wondered how the wealthy seem to pay less tax than the average person?
Well, my guest today is accountant Alan Mason, who was Kerry Packer's former accountant, and he's the author of the book The Tax Secrets of the Rich.
Our discussion today will be critical for all businesspeople, but if you're a property investor, you are in the business of providing rental accommodation, so let's find out the tax secrets the tax office doesn't want you to know about.
Proven Tax Strategies from Alan Mason
The wealthy use sophisticated tax strategies to legally minimize their tax obligations and build substantial wealth.
Alan Mason, the former accountant of billionaire Kerry Packer and author of Tax Secrets of the Rich, shares his vast experience in our conversation today, offering valuable tips for businesspeople and property investors looking to optimise their tax strategies.
We discuss:
- Alan Mason’s 40-year career in tax and accounting, focusing on strategies used by high-net-worth individuals to legally minimize tax obligations
- Kerry Packer's impact on business and cricket
- Debunking common tax myths
- The importance of having a proactive and knowledgeable advisor
- Legal avenues such as charities and foundations that high-net-worth individuals use to minimize tax liabilities while maintaining transparency with the ATO
- Strategies for handling complex transactions
- Restructuring deals to be more tax-effective
- The importance of pre-planning for tax liabilities
- Strategies for property investors
- Offsetting capital gains with losses
- Prepaying interest to minimize tax bills
- The significance of proper record-keeping and leveraging tax refunds to grow a portfolio
- Adopting a millionaire mindset
- Questioning the status quo
- Seeking quality advice
- Investing in professional advisors
- Where people can find Alan’s book
By the end of this episode, you'll gain a deeper understanding of the strategic tax planning and wealth-building strategies used by the rich, which will give you practical advice to grow your financial independence.
Links and Resources:
Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us
Tax Secrets of the Rich - Buy Allan’s book here
Get a bundle of eBooks and reports = www.PodcastBonus.com.au
Some of our favorite quotes from the show:
“Many people who have family trusts don't even understand the importance of the various people in the trust. So, you are mentioning the trustee can be changed, and this means it's important to become the appointor.” – Michael Yardney
“So really what we're talking about is building up passive residual income that you don't have to work for anymore, and your money's working for you even when you're asleep or away on holidays.” –Michael Yardney
“You see, the path to becoming wealthy is a long journey. The self-made millionaires in Tom's study understood how hard it was to accumulate their wealth, and because of this, because of their smart money mindset, I guess that got them there.” – Michael Yardney
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