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 […]
Allocating profits in a professional firm
Allocating Profits within Professional Firms The allocation of profits within Professional Firms, such as accounting, architectural, engineering, financial services, legal and medical professions, continues to be under close scrutiny by the ATO. In 2015 the ATO issued guidelines for practitioners outlining how its general anti-avoidance legislation could apply to professional firms that allocate profits from […]
Launch of our video platform
We have recently been working through a range of education and information videos to support our partners or to give you some understanding of the issues that arise in the management of taxation or restructure issues. Understanding that some of the issues that arise are complicated and need further explanation, each video tries to cover […]
Is attending a conference tax deductible?
The test is a standard question of whether the conference costs were ‘necessarily incurred in earning your assessable income’. The ‘necessary’ causes some taxpayers some concerns. If the conference keeps your knowledge current and/or refines your skills, is in the area that you currently operate and is in the nature of continuing professional development, then […]
Signs of a distressed business
You’re a business owner and you think things are going well, but are they really? What are the signs that you should look out for? Are you drawing an income? Our first conversation with our clients is when is the last time you drew a salary or wage. For a lot of business owners it […]
Non Commercial Loss Rules
Losses that you incur in running a business as a sole trader or partnership are referred to as non-commercial losses. Under the correct circumstances, these losses can be offset against other income. If the tests are passed, individual taxpayers can benefit from these losses by offsetting them against other income such as salary and wages […]
Welcome to C&D Restructure
The team at C&D would like to welcome you to our website. Whilst the name is new the business remains the same. Lead by Craig Dangar, we continue to offer comprehensive support for our professional partners.