When a company suffers from financial difficulty or insolvency, the company may go into liquidation. This can be done voluntarily or through a court order. Liquidation involves the company’s dealings winding up so that the business operations can cease, and the company can prepare for deregistration.
You can only choose the depreciation method that is to be used to claim depreciation deductions on the fixtures and fittings within your investment property or properties once, so make sure you choose the method that is going to be most beneficial to you.
Purchasing commercial premises using your superannuation can be a financially rewarding investment strategy. Here, Chartered Accountant and SMSF advisor Peter Quinn explains the benefits of buying your business premises in your superannuation fund.
The ATO have stood by their belief that dividend washing is an illegal practice, slapping around 3000 fund managers, stock brokers and investors with a personal letter at the end of last month which threatened audits and steep penalties on those who did not “come clean” with engaging in such practices. Such a general attack has been launched by the ATO on the back of draft legislation being released which has sparked the ATO to reiterate that it does not believe that dividend washing is allowable under tax law.
Don’t be slapped with Excess Contributions Tax – oversee and control the payment of contributions made to your superfund
The Federal Court recently heard a case where the Commissioner had penalised a taxpayer with excess contributions tax (ECT) after, unbeknown to the taxpayer, his bookkeeper had made payments to his superannuation funds on the wrong date, resulting in multiple payments being recorded for the one financial year. In upholding the decision of the Commissioner not to reallocate the contributions made in the one financial year to that of those surrounding it, the Federal Court made it clear that the delegation of contribution payments in itself is not a factor that makes it favourable for the Commissioner to exercise its discretion to reallocate.
There are many sections of the Corporations Act 2001 (Cth) (‘the Act’) that require some report to be handed to, or some notice to be given to a company’s creditors a certain number of days before a meeting is convened. For example, the Act requires liquidators to give a company’s creditors at least seven days notice of a meeting of the creditors, and the administrator of a company is required to give the company’s creditors notice of a meeting concerning a proposed variation of a deed at least 5 business days before the meeting. The Act gives you the option to send notices to your company’s creditors electronically or via post. But what method should you use to get the notice period starting as soon as possible? The answer isn’t as straightforward as you might think.
Generally speaking, you do not have to pay capital gains tax (CGT) on any capital gain you make when you dispose of your main residence. But how do you prove that a certain property is your main residence? A recent decision by the administrative Appeals Tribunal has shed light on the requirements needed to satisfy the CGT principal residence exemption.
There are a number of tax changes coming into effect as of 1 July 2014 that will affect all businesses. As a business owner, you need to ensure you are keeping up to date with all tax changes to make sure you are doing what’s right for your business and its employees. Check out our list to see how the changes will affect your business.
If you currently own or are thinking of starting a small business, you should be aware of the most common risks that small business are faced with. This enables you to be better prepared, and deal with these risks appropriately. Here are some common risks and how to manage them.
Despite popular belief, discretionary trusts do not always guarantee asset protection. As highlighted by a series of cases recently considered by the Federal Court, this is especially so in the instance a trustee is declared bankrupt. To be effective, discretionary trusts need to be set up correctly and constantly reviewed.