Opportunity to Save Tax - Or Not?

The juggling of company income between shareholders and companies to take advantage of the lower company tax rates is going to be a reasonably common occurrence for the 2010 and 2011 tax years. However, the IRD has enshrined into legislation (Income Tax Act Section BG) that any scheme that has as its principal purpose the avoidance of tax may be tax avoidance. Past behaviour, the viability of the company etc could provide non-tax reasons to vary the pattern of shareholder salaries. Risks will reduce, if the clients changed salary policy is not greedy