Small Business 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.
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.
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.
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 Legal side of Redundancy: What businesses need to know
Under the National Employment Standards (NES), an employer who is defined as a small business employer is not required to provide redundancy pay. However, an employer may have redundancy pay obligations under an industrial instrument or contract of employment.
Important Dates to Note
December Quarter Super is due on 28th January 2012
Last day for superannuation guarantee contributions to be made to a superannuation provider for quarter 2 2011-12 (1 October - 31 December).
Learn more »
Carrying Forward Losses
Corporate entities are afforded a lot of tax benefits and flexibility in the way that they manage their tax affairs, particularly in their treatment of available tax losses. One such benefit is the ability to carry forward losses accumulated in one income year for deduction against assessable income gained in future years. The general limitation is that the company that incurred the loss must be one and the same entity as the claiming company so in order to utilise a prior year loss, a company must satisfy either the Continuity of Ownership Test or the Same Business Test.
Urgent note - Default assessment letters being sent to non-lodgers
From 12 December 2011, the Australian Tax Office will send default assessment warning letters to some clients of tax agents with overdue income tax returns where the Tax Office has evidence these taxpayers received taxable income in the relevant financial years.
Tips on keeping good records for your Business
Keeping good records requires more than just knowing which records to keep and for how long. It also includes setting up systems and maintaining records in a way that makes it easier for you to monitor the progress of your business to track business is improvement, which items are selling and changes that are required – knowing how best to keep records can be the difference between the failure and success of your business.
