Wednesday, July 30, 2008

It's Tax Time - Amway Distributors, is your "business" really a business?

Well it's that time of year again.....the preparation and lodgment of the 07/08 Financial Year Tax Return. One of the "benefits" of joining the "business" that sometimes gets touted to potential distributors is the "tax benefits" that can be gained, which by the way, is in violation of Amway's rules.

Let's be clear here, the ATO (Australian Taxation Office) has laid down in no uncertain terms as to when an Amway "business" is actually considered a business. It also clearly spells out when expenses can be claimed and what percentages apply. No matter what any sponsor or upline tells you regarding the "business" expenses and so forth, it means jack squat (not to mention it's misleading) if it does not accurately reflect the ATO's position. So do your homework and seek independant taxation and/or financial advice.

We highly recommend any potential and in fact, any new distributors that have joined this last financial year to read the ATO's position on the Amway "business". It is a lengthy read, but probably one of the most important documents that should be read before anyone decides to join or who has recently joined Amway. It is found on the ATO website:

From reading through the document, it's evident that the vast majority of the Amway "businesses" here in Australia would not be classed as businesses at all, as the ATO specifically states:
"You are not carrying on a business if you:

*purchase goods predominantly for your own self consumption
*are not actively sponsoring downline IBOs or otherwise building your Amway activities, or
*have minimal retail sales and insignificant sales to downline IBOs"

If you believe or have been told that you "don't have to sell" but simply just purchase and self consume products from your own "business", get others to do the same and you'll make significant money (we were told $50k within 12-18 months) then your deluding yourself that your running a "business". You may be able to kid yourself, but the ATO ain't gonna be buying it.

Now, if you are making a profit, and we should say, NET profit after all expenses (and this includes tools), then great, no really, we congratulate you. But if your not making a NET profit after a reasonable period of time and effort, then we think you should seriously evaluate your "business". Worse still, if your not keeping a regular track of your expenses and income to begin with, then in the real world, you are not and will never be considered a real business owner. Simply having the moniker of "independant business owner" certainly does not make you one, especially if you can't or don't run your Amway "business" like real businesses do.

If you believe or have been told that you "don't have to sell" but simply just purchase and self consume products from your own "business" and get others to do the same then as you can see, this does not constitute carrying on a business. Don't kid yourself by thinking otherwise and certainly don't let your sponsor/upline kid you either, especially if they tell you that you will make significant money by doing so (we were told $50k pa within 12-18 months). It's absolute baloney if they do not provide the data/evidence to back up thier claims.
If you have joined or are thinking about joining the Amway "business" to make money, and heck ain't this the primary reason people go into business for? then for god's sake, treat it and run it like a business, like real business people do. Real business owners understand the taxation laws that pertains to their business, and as an Amway "business owner" or a potential one, so should you!


xbeliever said...

Yes, the tax department came down very heavilly on people in all multi-level marketing businesses claiming deductions a few years ago. The targeted amway distibutors in particular.

By the way ... you may want to post informations concerning the latest news on the ida website which confirms that tom and caryn avelsgaard have left ida in the hands of their upline. They claim to be retiring but it is well known that their son Julian has signed up into mona-vie and alot of their downline have joined mona-vie under Julian.

Following is a cut a paste of the latest news direct from the ida website:-

Hi, Everyone!

Well, this is a big month for a number of people who are achieving goals for the first time - especially those of you who are shooting for those bigger pins. Keep in mind that you are nearly there - just days away from achieving your goal!

This is a big month for us, too. After many months of thought, prayer and discussion with Bert and Jackie, we have decided to claim our dream. The first time we saw the plan, the word ''FREEDOM'' was written in big letters on the white board and that was what we wanted - freedom from a boss and freedom to make more choices in our lives. As of 1st September, we will be stepping into that freedom fulltime, and it starts with an extended stay in the States with our families! When we first began building our business in 1981, that dream seemed so far off - really, quite unbelievable. However, with an incredible business plan, a proven system, and an amazing upline mentor to guide us along the way, we have achieved our dream.

Our main concern in reaching our decision to go 'fulltime into freedom,' is being assured that those of you who have looked to us for guidance should not be left without a mentor. So, Bert and Jackie will be stepping in our place to provide you with the same leadership that they've offered to us over the years - a leadership of enthusiasm; of love for the business; of leading by example; and, above all, of love for the people.

Bert and Jackie, along with us, believe in each and every one of you, and encourage you to embrace your dreams, and build your future with passion - DREAMS DO COME TRUE!!!

Much love,
Tom & Caryn

ozamwayvictims said...

Thanks X for the IDA email, we were aware of it, just been too busy to post about it.

It will be interesting to see if indeed Tom & Caryn retire, as in "walk the beaches of the world" stuff (which is implied in their email) or if they'll pop up around the net showing them personally connected to Monavie....which we think is what your alluding to.

If so, why didn't they just come out and say that they're leaving Amway to pursue another "opportunity"??

Again, we have to ask, if this is the "best business opportunity in the world" then why are so many Diamonds, here and overseas leaving it? our opinion, it's because it simply isn't. Not by a long shot.

ozamwayvictims said...


just caught your post on this on Qblog...this caught our attention:

"Right now, as we speak, I have a bottle of mona-vie juice in my fridge. It was dropped of to me, without invitation I might add, by a person who, up until about 8 weeks ago, was a ruby in tom and caryn's group".

So are ya gonna sign up for auto-ship? *snickers a little*

xbeliever said...

Lol - don't need to! Even if I did want the product, I have enough people trying to recruit me now that I am sure I could probably go the next few months with just asking people to give me a bottle to try. Seriously, in the past 6 weeks I have had 6 ex-amway IBOs (the highest pin being an ex-emerald) approach me about mona-vie.

ozamwayvictims said...

Xbeliever said: "Seriously, in the past 6 weeks I have had 6 ex-amway IBOs (the highest pin being an ex-emerald) approach me about mona-vie"

Not surprised by this at all. Hmmm, do they realise that they are violating MV's rules? It seems that they are and doing so quite blatantly at that, considering that they have to certify (amongst other Amway related stuff) on the MV Distributor Application & Agreement Form that:

"3. In addition, if I have been a distributor in the past with Amway, then I further certify that:

b) I will not solicit or attempt to entice any person who is or has been an Amway
distributor to become a MonaVie distributor."

Full pdf is here:

Wonder how good MV is in enforcing their own rules? Probably just as good as Amway Australia have been. The we'll turn a blind eye to the all the violations so as new recruits keep signing up and thus the money keeps rolling in for us and the AMO's, then everythings sweet, stance has kept this "business" afloat in the past.

Not anymore, the tide is turning in a big big way and Amway are shit scared of MV. Not MV per se, rather the massive defection of IBO's to it.

ozamwayvictims said...

Oops, link got cut off, should be:

Anonymous said...

I wonder if Tom & Caryn are following Trevor Chatham's who appears to be in Mona vie and doing much better than he did Amway.