Accounting News
The government wants to give you money for Research & Development!
But you only have until April to claim it.
If you developed any new or improved products during the 2010-11 financial year you may qualify for the federal government’s Research & Development (R&D) Tax Incentive scheme.
Minimise Capital Gains from Buying and Selling properties
Capital Gains Tax (CGT) is the tax you pay on any capital gain you make, which you include in your annual income tax return. There is no separate tax on capital gains, it is a component of your income tax. You are taxed on your net capital gain at your marginal tax rate.
More power for ATO, police to catch offshore tax cheats
The Australian Taxation Office (ATO) and federal law enforcement agencies want to intensify their campaign against offshore tax evasion, with increased penalties and greater powers for investigators expected to be considered by the federal government this year.
Act swiftly if you receive a Directors Penalty Notice (DPN)
A director of a company that has a tax debt to the ATO (often in relation to PAYG withholding amounts) may be served with a Director Penalty Notice also known as a “DPN”. The aim of a Director Penalty Notice or DPN is to make directors liable for their company’s unpaid tax debt. Director Penalty Notices have undergone some very significant changes.
Keeping Good Financial Records
The New Year is now in full swing and many business owners are resolving to make a fresh start with their business by creating and maintaining good financial records. It is vital that you keep records of the amount of money coming in and out of your business, as it can give an indication of how well your business is going. Legally, as a business owner you are required to keep correct and honest business records. The records must be legible and in English, and be readily accessible. If these are kept correctly the records should explain your business’s financial performance and position, it can also help to prepare you, should you be audited at anytime.
Default assessments for non-lodgers to be issued soon
On 14 December 2011, the Australian Tax Office (ATO) sent default assessment warning letters to tax payers who have overdue income tax returns where they had evidence they received taxable income in the relevant financial years.
ATO winding up lots of companies
Last week (week ending 29 January 2012) despite the public holiday, the ATO and WorkCover issued just under 200 Winding Up Notices. Australian companies may be wound up by the Court if creditors are pursuing the debt owed. In these cases the creditor was ATO or WorkCover.
How does Bankruptcy affect you?
Bankruptcy refers to the situation where an individual is unable to meet their financial obligations and repay accrued debt. It occurs when an individual does not have enough money/assets to pay creditors or a debt that is owed. However, it is not to be confused with the American term in which ‘bankruptcy’ is used for companies and not individuals.
Insolvency and your Business
Insolvency law has become a generic term for what used to be called company liquidations and bankruptcy. As defined by the Corporations Act, insolvency is the inability to pay debts, as they fall due, out of the debtor’s company resources and refers specifically to businesses and companies. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.
The importance of determining sources of income
As an individual, you must pay tax to the Government in proportion to your earnings for the financial year period. In addition to the marginal tax income rates that are used to calculate the base amount of tax payable, taxpayers may be eligible to claim deductions or offsets that may further reduce the amount of tax payable.
