Is your Div 7A Compliant?
Division 7A of Part III of the Income Tax Assessment Act 1936 (ITAA36) is an integrity measure that was designed to prevent companies from making tax-free distributions to shareholders or their associates. This can occur where distributions of profit are disguised as loans or other transactions. This effectively allows the shareholder or their associate to […]
Ways of thinking around Div 7A
Abstract: When a private company makes a loan to a shareholder or an associate during an income year, Div 7A of the Income Tax Assessment Act 1936 (Cth) can deem the company to have paid a dividend. The dividend is assessable to that shareholder/associate. However, no deemed dividend will arise if the loan is either repaid or placed […]
Basics of Div 7A
As the owner of a private company, it’s normal – and completely legal – to borrow money from your business. However, thanks to Division 7A of the Tax Act, failing to properly record that loan could land you in some serious strife come tax time. Here’s how it works, and how to avoid its impact […]
Can the ATO wind me up?
Unpaid tax debts can lead to serious consequences for businesses that are having problems keeping up with their tax debt. When it comes to enforcing debt, the ATO has a number of options, including pursuing wind-up proceedings in court. While the ATO will not pursue the wind-up course of action if a company has repaid its […]
8 tips for managing business finance
Keeping track of your business finance is critical, regardless of whether you run a small business or a large enterprise. Tracking financial metrics may be boring or tedious for some people, but it’s absolutely essential. Why? Because it enables you to know exactly what’s going on with your sales and expenses, and therefore make smarter […]
The Value of your Accountant
Many businesses, especially smaller businesses, aren’t committed to consulting their accountant on a regular basis. This can turn out to be a costly error over the longer time when in fact a trusted and competent accountant helps you understand what’s happening in your business. The advice that your accountant gives you can help you avoid […]
Non-bank finance
Getting access to adequate financing is often the biggest hurdle for entrepreneurs and existing business. A lack of finance constrains your operations and raises the risk of insolvency and other financial issues. As an entrepreneur or business owner seeking new financing, it’s time to expand your horizons and discover other exciting alternatives for financing your […]
Industry Specific – Motels
Craig runs through the observations of the accommodation industry in rural locations. More information? To find out more, give us a call on 1300 023 782 or email team@cdrta.au.
Liquidation – the first step
Liquidation can be an option for companies experiencing financial difficulty, and it may be the last resort for companies that need to be wound up. In Australia, liquidation applies only to companies, and there are a few types of liquidation – each with different first steps. If your company is entering liquidation or you’re considering […]
Difference between Administration, Receivership or Liquidation
If you’re a business owner or company director, you’ve probably heard of terms such as receivership, administration, and liquidation, but what exactly do they mean? These concepts refer to specific stages for companies that are close to being or are insolvent, and that have entered a period of external administration. There are significant differences between […]
