Latest / Beyond Sovereignty / #053 - Weet‑Bix Doesn’t Pay Taxes (And Your Business Doesn’t Have To Either)

Transcript

#053 - Weet‑Bix Doesn’t Pay Taxes (And Your Business Doesn’t Have To Either) · Beyond Sovereignty

• 0:00
  Weet-Bix, Sanitarium, in every supermarket in
• 0:03
  the country owned by a church. And its own
• 0:06
  website calls the model profits for purpose. Most
• 0:10
  people believe a business pays company tax because it's a business. But
• 0:14
  the reality is tax follows the structure that
• 0:18
  owns the business. And there are three things you need to understand
• 0:21
  before yours could ever work in the same way. Over
• 0:24
  the past 20 years, I've helped hundreds of entrepreneurs to set up
• 0:28
  and run not-for-profit structures legally and compliantly. So
• 0:32
  in this episode, I'm gonna be stepping you through how Weet-Bix and
• 0:36
  a few other brands you would recognize are actually owned,
• 0:39
  where their profits go, and whether your business has a
• 0:43
  purpose that would generally qualify. So who owns
• 0:46
  Weet-Bix? I'm glad you asked. It is the Seven Day
• 0:50
  Adventist Church, and it is a 125-year-old charity. which
• 0:57
  means that for 125 years, this organisation
• 1:01
  has not paid any tax because Wheat Beaks
• 1:05
  and Sanitarium is the health promotion product
• 1:09
  for the Seven Day Adventist Church. Now what does
• 1:12
  it mean profits for purpose in plain English? It
• 1:16
  means that rather than them having profits that go to profiteering, they're
• 1:20
  going to have funds that come in that go towards their purpose. And
• 1:24
  their purpose can be anything from helping families,
• 1:28
  helping regenerate land, helping promote health, anything
• 1:32
  that they want to promote for their purpose. And their
• 1:35
  purpose is for health. So anything to do with health, they can
• 1:39
  literally have funds coming in and it goes towards their
• 1:42
  purpose, which means that it's tax exempt. Now, why
• 1:46
  does the business owner decide what tax it pays? It
• 1:49
  doesn't, because they're not set up to be able to make those kind
• 1:53
  of decisions for themselves. However, when you have
• 1:56
  a charity or a not-for-profit, you decide how much tax
• 1:59
  you pay, if you pay tax, and obviously you pay it once a
• 2:03
  year. Now, what's the difference between a company that has a
• 2:06
  charity, like Cotton On and a charity that
• 2:10
  owns a company like Weet-Bix. Now, the
• 2:13
  big difference is big, obviously.
• 2:17
  So, with Cotton On, they have got a normal Pty Ltd, they've got a normal organisation
• 2:21
  and then they've got a charity as well. It means that people can purchase
• 2:25
  their tote bags and it goes towards their charity. the
• 2:29
  outside. But on the inside what it means is that Cotton On, the
• 2:32
  Pty Ltd, can donate its profits into
• 2:37
  its charity and then it can offset those as
• 2:40
  taxes. Yummity yum yum yum. Don't you wish you were doing that? Yeah,
• 2:44
  well they're doing it good. And it also means that they can decide where
• 2:48
  their employees are paid out of. Are they paid out of the Pty Ltd? or
• 2:51
  are they paid out of the charity to then deregulate funds
• 2:56
  in the PTY OTT as well? Very smart, up
• 2:59
  to you, options, we help people with that. And then what is the
• 3:02
  difference between a company like Weet-Bix? Well Weet-Bix's whole
• 3:06
  organisation is for, it's the
• 3:10
  health promotion product of the Seven Day Adventist Church.
• 3:13
  So it's set up differently, it doesn't have any taxes to offset
• 3:17
  anywhere because the organisation is completely a
• 3:21
  charity so it's set up tax exempt right from the start. Now
• 3:24
  what that means is that it will sell its product and all of those funds that come in,
• 3:27
  there is no taxes to pay. There's no company taxes. There's no normal
• 3:31
  taxes that an organization would have to pay. There's no income taxes because
• 3:35
  nothing that comes into that organization is seen as income because
• 3:38
  it goes to the purpose directly. The purpose which is
• 3:42
  to deliver health for the Seven Day Adventist Church. Hope that makes sense. Now,
• 3:45
  which of the brands from the last time do you refuse to
• 3:49
  believe when we showed you them? Was it, oh gosh,
• 3:53
  was it one of the political parties? Was it one of the churches? Was
• 3:56
  it Ronald McDonald House? Who was it? Because what
• 4:00
  a lot of people didn't realise is that Australia had its own religion. and
• 4:04
  that that was a big one, right? So the
• 4:08
  Salvation Army is the religion of Australia, and
• 4:11
  every country has a religion. Most people are baffled by
• 4:15
  that. Most people are also baffled that Weet-Bix is owned
• 4:18
  by a religion. That one gets a lot of people. And then also
• 4:22
  what really shook people up was the amount of money
• 4:25
  that is going through these entities. These charities are billion dollar brands,
• 4:30
  and people just thought they were little charities. They
• 4:33
  couldn't do a charity because they're not doing enough in the world. So, which
• 4:37
  one was it for you? Write it in the notes below. Let me know, which one did
• 4:40
  you refuse to believe was actually a charity? Now,
• 4:43
  where does the profit actually go in each of those? Every
• 4:47
  entity is different. So every entity is different.
• 4:51
  And remember that charities and not-for-profits, they don't have any
• 4:54
  profit. They have revenue. So where does it go? It
• 4:58
  depends on where they want their funds to go. Do they want to support a
• 5:01
  mission? Do they want to support a project? Do they want to support another charity? Do they
• 5:04
  want to buy investments? Do they want to buy stock shares or
• 5:07
  crypto? Do they want to buy property? It goes wherever the
• 5:11
  directors decide the funds are going to go because the
• 5:14
  directors are on the board and they are the ones that are directing those funds.
• 5:17
  Wouldn't you like to be on the board? Be on the board. Now, what's the difference between
• 5:22
  a business owner owned by a charity and a business
• 5:25
  pretending to be one? The difference between a
• 5:29
  business owned by a charity is generally
• 5:34
  the outcome of what it is that they're doing. So, people doing really
• 5:37
  good stuff. And then there's businesses pretending to be one. Now,
• 5:41
  it's all perspective, right? But for me,
• 5:45
  there's many organizations that are doing really bad things to
• 5:48
  the environment, and then they have a charity that they
• 5:52
  have created to offset their profits
• 5:56
  and then they pay other organizations to go and do great things
• 6:00
  to the environment. That to me would be the biggest scam on
• 6:03
  the earth. That is also a lot of billion, billion,
• 6:07
  multi-billion dollar brands out there and corporations out there. I
• 6:11
  believe that they're pretending to be a charity because all they're doing is offsetting billions
• 6:15
  of dollars to offset their guilt of how
• 6:18
  much degradation and hell they are
• 6:21
  causing our planet. So that's just in my opinion. Now, which
• 6:25
  of these models is your business closer to? Now, at
• 6:28
  the moment, your business would be closer to Cotton On because you
• 6:32
  don't yet have a charity, if you don't yet have a charity. And
• 6:35
  then it means that you would be donating into your charity and
• 6:39
  then you would also be offsetting those taxes and having
• 6:42
  it set up that way. However, it's not the end goal,
• 6:46
  but a lot of people choose to have their charity absorb
• 6:50
  the same purpose project that their business delivers
• 6:55
  and deliver it through their charity. Because like, let's say you
• 6:59
  have got a dog grooming business or you're
• 7:03
  a health retailer or a health service provider. Anything
• 7:07
  that you're doing in your PTY Ltd now or through a trust or through
• 7:10
  the corporation that you've got set up, could be designed to
• 7:14
  be set up through your charity if it is structured well. And
• 7:18
  that would be the ultimate goal because then you don't have to
• 7:21
  worry about taxes and you can have your entity set up so that it can actually
• 7:25
  deliver the purpose of what it is that you want to achieve through
• 7:28
  your Pty Ltd. So both are possible but
• 7:32
  most people whilst you're getting your charity set up start with the first one.
• 7:36
  When did you first realise your salons could be structured differently? Well
• 7:40
  I'd already spent $150,000 on my accountants that year and then we'd also spent about $400,000 on taxes. That was the
• 7:44
  year that I first realised that
• 7:52
  we could be structured in a different way. Oh my gosh, and
• 7:56
  I just thought about all the millions that I had spent already on the years
• 7:59
  earlier and I was like, so that was the first time I realised. Now
• 8:03
  what I would say to the business owner or the entrepreneur or the leader watching
• 8:06
  this that is thinking this is just for big companies is
• 8:11
  all of those big companies started off small and they all before they got started
• 8:15
  didn't exist. So exactly where you are is where they
• 8:18
  all were once. And all they did was take one step
• 8:22
  forward. And so this is your invitation to take one step
• 8:25
  forward. And if you are ready and you want to actually move
• 8:29
  forward, this is your invitation to book
• 8:32
  a call with me and my team. Because we will be able to take you
• 8:35
  from where you are now to where you want to go. because just like all
• 8:38
  of those companies, they started off with nothing, probably with
• 8:42
  zero ideas, and there were people along the way that
• 8:45
  put them on the trajectory that changed their lives to having multi-billion dollar
• 8:49
  organizations. So allow us to help you
• 8:52
  create the mission and the purpose and take your business from
• 8:56
  where it is now to actually serving millions, if
• 8:59
  not billions, of more people who are desperately
• 9:03
  dying for what it is that you have to offer. So why couldn't
• 9:06
  you be like Weet-Bix? Why couldn't you be like the
• 9:10
  Salvation Army? Why couldn't you be like Cotton
• 9:13
  On? Where you created entities and structures that support
• 9:17
  you and your mission and what it is that you are here to create. Whether
• 9:21
  that be wealth, whether that be purpose, whether that be
• 9:24
  creative positivity around the world. Everything is open
• 9:28
  to you right now. Right now. You don't have to wait for
• 9:31
  this sometime when moment. That sometime when moment is right
• 9:34
  now. And all you have to do is book a call with us and we will
• 9:38
  be able to help you on your path. But if you are not ready to book a
• 9:41
  call, if this is not the stage that you're at, then please just go into the
• 9:44
  notes and get the freebies. There is an amazing webinar that
• 9:48
  will teach you more. There are amazing PDFs that will teach you
• 9:51
  all about these structures as well and support you on your journey. You
• 9:55
  are not alone in this. You do not have to wing it by
• 9:58
  yourself. Trust people that have actually done
• 10:02
  this for a very long period of time. And do you know
• 10:05
  what? We love it. We love doing this work. We love
• 10:08
  getting on calls with you and seeing where you're blocked, where your limitations are,
• 10:12
  and helping you create everything that you've always desired in
• 10:16
  this life. Thank you so much for your time today. It
• 10:19
  honestly warms my heart every time that you listen to one of my episodes, and
• 10:22
  I'm so grateful for your time, the time that you've spent
• 10:26
  listening to this. Thank you so much from the bottom of my heart. Thank
• 10:30
  you. I hope you have the most beautiful day, week, life, and