Starting a company to make investments(for tax reasons)

Hi,

I read a book recently mentioning that setting up a company to buy investments (shares, bonds, gold, property etc.) can be very tax efficient (American based book).

The basic idea is this; in a company you can do jobs on the side (legally), this gets money paid into the company without taxes (only taxes on profit at the end of the year?). The company then invests this money and leaves little profit at the end of the year to be taxed (at 25% because it's classed as passive income?).
Without a company I would have to pay ~48% tax before I get any money to invest.. so I am already down.
In the long run I would have to take a salary from the company to get the money back out, so I will pay tax eventually, but with a company I pay taxes later (possibly years) and so will be able to create wealth quicker.

Hopefully that makes sense to some of you. At the moment I have a full time job so this will be on the side.

Has anyone heard of this before in Ireland or know of any good books I could look at?

Thanks

would the american based book be rich dad/lad by any chance?

Hi Chevalier,
It is better to set up a real business and pay 12.5 % corporation tax, then
the money you have got left invest and pay just 20 % from the profit
Good luck

Chevalier

Do a search on Askaboutmoney and you will find this discussed at length and why it is a bad idea.

Brendan

Nicky said:

Hi Chevalier,
It is better to set up a real business and pay 12.5 % corporation tax, then
the money you have got left invest and pay just 20 % from the profit
Good luck

Click to expand...

This "advice" is so wrong, I don't know where to start

This "advice" is so wrong, I don't know where to start

Of course, it is possible to set up an ivestment company, but you have to be qualified as an financial institite and the tax rate will be very high, even if you can take high salary to make smaller profit you will have to pay high PRSI/PAYE

Could anyone give us a better advice, please ? It would be very interesting.