Accounting News
Director Penalty Notices – What are they and what do you need to do?
All companies that have employees must withhold income tax when they pay their employees, this is known as PAYG. That withheld tax becomes an automatic debt that is owed to the ATO by the company and if the company fails to pass it on before the due date the directors of the company become personally liable for the entire debt.
Tax Alerts – Be aware of the risks
Recently the Australian Taxation Office issued the following alerts to help you recognise some of the ‘dodgy’ agreements that are out there. It is important that you are aware of these so that you do not get caught in the midst of something potentially illegal or at the very least frowned upon.
Buying vs. Renting
The age old debate of buying vs. renting has become even more difficult with recent research proving that buying property is becoming cheaper than renting in many parts in Australia. It was found that in 94 suburbs the monthly cost of renting a house is greater than the average monthly mortgage payment. This has forced many people to stop and reconsider whether they’ll rent or buy a property hence we put together an article full of the pros and cons to help you make a more informed decision.
Are you managing your finances, or are they managing you?
With the arrival of 2010, now is probably a good time to plan your finances for the rest of the year. However, being able to effectively manage your finances is not something that many people are good at. Often we find that it is quite the opposite, our finances are managing us. So what’s the answer?
The Season of Giving is Upon Us - Tax Deductible Donations
For so many of us Christmas is a time to spend with family and friends, eating, giving and receiving presents and enjoying each others company. It is also the time of giving to those less fortunate. Both Individuals and organisations alike can claim a tax deduction for such donations.
In order to make a tax deductible donation, the donation or gift must be made to a Deductible Gift Recipient (DGR). Only certain organisations are entitled to receive income tax deductible gifts and tax deductible contributions. To check if an organisation is a DGR, you will need to refer to the ATO’s website. One common misconception is that all charities are DGR’s, however this is not the case. For this reason it is important to ensure that the charity you are donating to is a DGR.
The recognition criteria for tax deductible donations are that they must:
• be made to a DGR
• really be a gift
• be a gift or money or a certain type of property
• comply with any relevant gift conditions
• Amount must exceed $2
Will your bookkeeper be compliant under the new Tax Agent Services Act 2009?
Legislation for the Tax Agent Services Act 2009 has been drafted and is intended to be enacted early in 2010. The new regulations will see that bookkeepers who are currently preparing and lodging Business Activity Statements (BAS) for a fee are now required to meet standard eligibility criteria and must be registered to perform those services.
Company liquidation – a solution for struggling businesses
When a company is no longer able to pay its debts using the company resources that are available it is determined to be insolvent. In the current economic environment, as a result of business forces, many business owners are finding that they are unable to meet their ongoing financial commitments and are falling further and further behind.
Will your bookkeeper be compliant under the new Tax Agent Services Act 2009?
Legislation for the Tax Agent Services Act 2009 has been drafted and is intended to be enacted early in 2010. The new regulations will see that bookkeepers who are currently preparing and lodging Business Activity Statements (BAS) for a fee are now required to meet standard eligibility criteria and must be registered to perform those services.
Business Activity Statements
Business Activity Statements (BAS) are used by business’s to report and pay a number of tax obligations, including GST, Pay As You Go (PAYG) instalments, PAYG withholding and Fringe Benefits Tax. This is the ATO’s way of combining a range of taxes into one statement to make it easier for you to collect and report information and monies that are due to the ATO, making sure that none are forgotten.
Non-profits and charities can avoid penalties with annual self-reviews
It is common place for most non-profit and charity organisations that along with the end of the calendar year comes a change of office bearers. It is at this point that it is necessary to be reminded of the importance of undertaking regular self-reviews. These reviews should be predominantly focused on the endorsement status of the charity as even the slightest change in circumstances can affect eligibility and consequently result in unwanted penalties.
