Planning Ahead:
Your Accounting Assistance Plan for January – June 2024.
With the ATO’s data matching of Government databases, we can all expect more tax audits in future years.
We’re planning now to assist you with the following advice areas relevant for Business Owners.
|
Month |
Advice Area |
Why You Need This |
|
February |
Professional Firm Profits Tax Advice |
Professionals: A recent ATO Tax Guidance requires professional service firms to document annually how their profits will be allocated and taxed in their family group. If the average tax paid is outside the ATO’s guidance – you may end up in the “yellow zone” or the “red zone” and be the target for an immediate ATO tax audit. |
|
March |
Div7A Loan Elimination Advice |
Company owners: With the massive increase in the Div7A interest rate to 8.27% for 2024, taking action now to make minimum annual repayments or even larger repayments could save you thousands of dollars over the next few years. |
|
April |
FBT Return |
Lodging a FBT Return – even with a NIL amount of FBT payable – restricts the ATO to a 3-year review period and protects you from the ATO going back unlimited years in an FBT audit. |
|
May |
Tax Planning Advice |
We’ll advise you on key actions you need to take before 30 June 2024 to minimise your tax, including consideration of the recent S100A ATO guidance on Family Trusts and splitting out income to family members in the correct way to avoid an ATO audit. |
|
June |
Trust Distribution Resolutions + Company Dividend Statements |
These resolutions and dividends should be recorded in writing before 30 June 2023 to prevent the ATO from taxing the Trust at 47% and from saying the dividend wasn’t declared properly – possibly leading to very adverse tax consequences. |
Nothing just yet. We’re across all of this for you.
