A client is incorporating his property portfolio. His intention was to have his parents set the company up and then gift shares to him (82%) and 6% each to his three young kids aged 6, 8 and 11. Dividends would then be distributed according to shareholdings to the kids avoiding the parental settlement implications. Seems perilously close to tax avoidance to me - associated operations?
Anyone know if this would 1) definitely work 2) work until he got caught or 3) not work at all?