I don't have detailed knowledge about the CPA or the new companies act, but i can tell you this little gem...
(1) Audit are not a requirement anymore and seems to be the main focus of many a business owner and adviser - all those lovely savings!
(2) Now,take a quick look at the personal responsibilities and liabilities that directors would have under the new Companies Act....Easy to "cut the corporate veil" that protected directors under the old Act.
Add to that the new CPA and all of a sudden we have a mix for disaster. Having a company will simply not be good enough to protect directors (read business owners) in the future.
(3) At the same time the Minister of finance levels the playing field in terms of transfer duties of properties to trusts (it's the same as for an individual)
(4) There are rumours of estate duty being scrapped in the near future...
So, where does all of above leave us ?
My guess is - all business owners and directors should have a trust holding assets, but not trading - even though this might lead to an increase in Capital Gains Tax on the odd occasion that huge capital gains are made (but I think growth in property will only click forward at the inflation rate in future - the decade of super growth is over - it was only an historic correction in the property market).
Business should be structured in a company, but chances are a clever lawyer would try to keep directors liable affording directors little protection AND finally CPA is going to make these law suits very probable.
All of this in a mix where you will not be able to believe a word of financial information provided by third parties (since their clever accountants would also be spinning a story)....
My advise - Get a trust and use the donations tax exemption to move assets to the trust on a annual basis. Live with the small increase in administration costs etc and think of it as a annual insurance costs to protect your assets.
