Rule 1: Pay the right price for the property It sounds obvious but it is something that is often overlooked. It is usually considered one of the most crucial steps in achieving a successful investment.
During the 2011/12 income year, the taxpayer company (the company) entered into three agreements with BSI Contracting Pty Ltd (BSI) under which the company would provide its only director (Mr Prasad) to perform certain project management services to ASIC.
The ATO has advised that last year, it cross-referenced information reported in tax returns against over 600 million transactions provided to it by third parties to identify omitted income and gains, or incorrectly-claimed offsets or entitlements to exemption from surcharges. It contacted nearly 400,000 taxpayers who had apparent discrepancies in the information they reported in… Read more »
What is a director penalty regime? The director penalty regime ensures that directors cause the company to comply with certain taxation and superannuation obligations. Directors have a responsibility to ensure that the company meets its PAYG and SGC obligations. If the director’s company has outstanding PAYG withholding or SGC obligations, the director will become personally… Read more »
Both commercial and residential properties provide their own advantages and disadvantages. Prior to investing it is important to compare both options and identify which one is most suitable for you. Commercial properties are used by businesses for office space, industrial works or retail. The advantages for commercial property investment include: Tenants are often more reliable… Read more »
The Tax Practitioners Board (TGB) has issued an information sheet [TBP(I) 09/2011] which explains when software providers are, or are not, performing tax agent or BAS services. The following are four examples that it provided where software providers are performing tax agent or BAS service. 1. A client outsources their entire payroll and accounts work… Read more »
Exchange Traded Funds or ETFs, are an investment fund, similar to a managed fund, traded on the stock market, similar to stocks. Most ETFs track an index such as a stock index or a bond index. Whilst many investors have moved away from managed funds to direct shares in their self managed superannuation fund in… Read more »
A director can be liable for company debts in the following areas: Insolvent trading Insolvent trading occurs when a company incurs a debt that it is unable and fails to pay, at a time when a director knew, or should have known, that the company was insolvent. According to the Corporations Act (the Act), all… Read more »
With the new financial year come new changes and adjustments to the tax system and your options for lodgement including the expanded use of your myGov account. The overwhelming paperwork and figures required by the Australian Tax Office (ATO) understandably makes this period a stressing and tedious experience for taxpayers. In the broadest sense, anyone… Read more »
What is a Safe Work Method Statement (SWMS)? A SWMS is a document which provides information that is required when undertaking High Risk Construction Work. High Risk Construction Work involves: work carried out in area with artificial extremes of temperature a risk of falling more than 2 metres building or demolition work that involve structural… Read more »