Your business is exposed to possible tax risks. The best solution is to recognize and manage the issues. Failing to do this will almost certainly see problems for your business
Set some time aside to evaluate your tax risks. Be sure that you’re working within the parameters of current legislation. Develop a regular procedure for the review process.
Accountants 2 Business recommend five crucial areas to investigate to determine if your business is open to preventable tax risks.
- Structure
Think about things like the structure and ownership. Meticulously analyze your business’s structure and determine the particular tax law that it must applied and any possible deviations.
- Business operations
Examine the operations over the past 12 months. Consider key transactions, including forgiven loans. Also, look at recovered revenue or capital losses. And review overseas related party dealings and the impact of transfer pricing rules.
All of these areas are subject to very specific tax rules and should be closely examined with your Accountant. It’s important to consider the tax loss recoupment tests.
- Goods and services tax (GST)
If you import or export goods, you must determine if your records meet the record-keeping requirements and support the GST action implemented. Also, check your GST group if you have one, to be sure that the group is permitted.
- Employment taxes and benefits
Examine how your business looks after employment taxes and obligations. Do you engage contractors? Have you assess these against the ATO employee v Contractor rules? You might be in for a surprise Super obligation. Look at employee benefits – do they constitute a Fringe Benefit?
- Funding
Can you meet your goals? Do you have the funds to complete development plans? Look at your Capital need and consider sources of funding like government grants programs and external investors.
Your Accountant should discuss these risks with you at least once a year. Accountants 2 Business assess these matters with our business clients every year as part of our year-end tax procedures.
The information in this article is general in nature and might not be right for your circumstances. Please arrange a meeting with one of our Accountants to discuss your particular needs. Accountants 2 Business Ph (07) 3823 2344
