Contractor or Employee?
Most independent contractors take care of their own tax liabilities (instead of the employer withholding employees’ tax under the PAYG withholding system) and therefore may require an Australian business number (ABN) to avoid having tax deducted at maximum rates from payments made by recipients of the contracting service. Contractors may also need to register for […]
Limits of small business rollover
Subdivision 328-G of the ITAA97 was introduced in 2016 to enable Small Business Entities to restructure their business operations under tax rollover relief. In addition to the entity transferring the assets being required to be a Small Business Entity (i.e. turnover of less than $10M), and in addition to the transaction satisfying the criteria of […]
Basics of Employee Share Schemes
Motivationally speaking, there’s not much that beats a financial reward. And as it is generally accepted that business owners are the most driven to see their business succeed, giving staff a real stake in an enterprise through owning shares in it is an incentive, and a reward, that many companies have utilised. Having a vested […]
Tax debts in liquidation
Liquidation involves the orderly winding up of your company, and distribution of assets to creditors and shareholders. While debts to the Australian Tax Office rank with equal importance to those owed to other unsecured creditors in the event of liquidation, there are instances when company directors may be personally liable for the company’s outstanding tax […]
Single touch payroll and lodgments
Single touch payroll reporting is now in effect for most employers with 20 or more employees. For those with less than 20 employees, this will come into effect for you come 1 July 2019. Each time you pay your employees, you will report the tax and super information to the ATO from your Single Touch […]
Diverted profit tax
On 16 February 2017, the Government introduced the Diverted Profits Tax (DPT). It was introduced as a necessary addition to combat multinational tax avoidance. The DPT will apply a 40% tax rate on the diverted profits of multinationals. The penalty tax aims to ensure that tax paid by significant global entities properly reflects the economic […]
Tax residence for companies
Bywater Investments Limited v Commissioner of Taxation; Hua Wang Bank Berhad v Commissioner of Taxation [2016] HCA 45 The High Court has clarified the question of how a company can be controlled and managed in its unanimous dismissal of appeals by four companies (“the appellants”) from a decision of the Full Court of the Federal […]
Property development and taxes
In our experience, people embarking on property development improve their tax and commercial position by documenting their intentions from the beginning. Ultimately, it’s beneficial to know what you are getting yourself into from the outset! Sometimes this can be as simple as a one page deed outlining the intentions of the parties with the net result being a […]
Using tax losses
Your business racked up a tax loss? Put it away for later use A business generally makes a tax loss when the total deductions it can claim for an income year exceed the total of that business’s assessable income for the year. Then of course there are deductions that you can’t count as tax losses, […]
Franchises and Tax
The Australian Competition & Consumer Commission (ACCC) is the government body responsible for enforcing the Franchising Code of Conduct, and if you or someone you know are considering entering into a franchise arrangement, this will probably be a good starting point to get an idea of what to expect. It imposes strict obligations on franchisors […]