Going concern on the business premises
Division 38-J of the GST Act provides that the supply of a going concern is a GST free supply. Division 38-J states that in order for a supply to represent the supply of a going concern, the supply must be for consideration, the recipient of the supply must be registered for GST, and the supplier […]
Distributing to a deceased estate
Section 99A of the Income Tax Assessment Act 1936 results in certain types of undistributed income of a trust estate being taxed at penalty rates (currently prescribed as 45%). However, section 99A provides exclusions for certain types of trust estates (in which case the undistributed income of the trust will be taxed concessionally under section […]
Timing issues related party expenses
Section 82KK of the Income Tax Assessment Act 1936 is an often overlooked section which can act to deny deductions incurred by a taxpayer. In effect, section 82KK applies to transactions between associates where a tax deduction would ordinarily crystallise to one of the parties prior to the other party having to recognise the amount […]
Steps to get out of debt
Changing market conditions, shifting consumer trends, and increased competition can all impact your business’s operating environment and make restructuring necessary. Business restructuring can consist of organisational and financial restructuring, with the former focusing on employees and processes, and the latter addressing the balance sheet. When done right, a business restructure makes your business more dynamic and […]
Guide for Accountants in VA
Voluntary administration is an insolvency procedure that brings in an external voluntary administrator to decide on the company’s next steps. Unlike liquidation, external voluntary administration won’t necessarily result in the company being wound down. For insolvent businesses and companies with cash-flow issues, the voluntary administration process can provide an opportunity by giving breathing space from […]
Simpler Trading Stock Rules for New Business
If you are operating a small business and at the end of the income year you estimate that your trading stock’s value has not changed by more than $5,000, remember (especially if you are new to business) that you can choose not to conduct a formal stocktake. By making a decision to do this, you […]
Third Party FBT
Where some businesses have tripped up in the past is where the source of benefits provided is not clear cut — that is, where non-cash components of remuneration are sourced not directly from an employer, but from an associate, a related company or from a third-party provider. For fringe benefits tax (FBT) to apply, the […]
Going concern?
The concept of a “going concern” exemption for the purposes of the goods and services tax (GST) can still cause confusion when businesses are sold. The sale of a business may be GST exempt if the enterprise is deemed to be a “going concern” — which refers to an enterprise’s ability to continue trading. The […]
Signs of a Struggling Business
A struggling business may show overt signs as the situation worsens and comes to an end, but often there are small signs long before this that can point to trouble on the horizon. An early warning sign for businesses is that there is a disconnection between operative cash flow and available resources. This can be draining or using cash resources or just making payments on time as cash comes in.
Private ruling for a SMSF?
The ATO says it can provide tailored technical assistance for SMSF trustees in some circumstances, orally or in writing, depending on the nature and complexity of their query. For example, you may need to seek tailored technical assistance if: If the contentious issue at hand is about how the Superannuation Industry (Supervision) Act 1993 and Superannuation Industry (Supervision) […]
