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A New Zealand foreign discretionary trust (the trust) is created by a New Zealand based promoter with a settlor which is a company that is not a resident of either New Zealand or Australia. The trust has a New Zealand corporate trustee controlled by the promoter. 2. The trust is represented in Australia by an Australian resident who is associated with the New Zealand promoter. The Australian representative has been given a power of attorney for the trust. 3. The trust and an Australian business enter into a service agreement where the trust provides staff and services such as administration, business equipment and the provision of a motor vehicle to that business. 4. The Australian business is located and operating in Australia. The owner of the Australian business is closely associated with the controller of the foreign settlor of the trust. 5. The Australian business claims a deduction for the cost of staff and services plus the mark up. 6. The fees paid by the Australian business are deposited into an Australian bank account controlled by the Australian representative of the trust. 7. The owner of the Australian business appears to have access to the funds in the Australian bank account.