The reason we ask is that share traders are taxed differently to share holders. Indeed, there are perks for those classified by the Tax Office as share traders, including the ability to write off share losses against other assessable income (such as a salary), plus the fact that share-trading expenses like brokerage can be claimed as a tax deduction. Share holders don’t enjoy such perks.
We spoke to Prince personally, who reiterated this point. "If you can demonstrate you are carrying on a share trading business, all share profits are liable to tax, and any losses you incur can be offset against your salary and wages, investment income and any other business profits you derive," he says.
"The fact that you may be a salary or wage earner, investor or someone carrying on business as a plumber, accountant, dentist etc, does not alter the fact that you may be treated as carrying on a share trading business...the classification is merely for the purposes of determining how your gains and losses will be taxed.
