Daisy is the CEO of Silver Stuff Ltd. She has approached you for some tax advice on her personal income. The Board has approved an increase of $150,000 to her annual salary. She wants to know whether she can avoid tax by taking it in another form. For example, she could set up a company named Gold Stuff Ltd. She would then make annual loans to Gold Stuff, which she could then withdraw but not repay. She promises you a week on her luxury yacht if you keep this information to yourself.

What are the implications for the following? Provide the relevant legislation code where applicable.

a. You as a tax agent

b. Daisy as a taxpayer

c. Silver Stuff Ltd. as a taxpayer