The Australian Taxation Office (ATO) continues to pursue the recovery of unpaid tax debt and superannuation, particularly from small to medium businesses. The ATO has recently visited approximately 400 small businesses on the Sunshine Coast and is rolling out visits to 10,000 businesses per year across Australia….
For many Australians, the largest (and often, only) pool of funds of any significance they have accumulated in their lives, is in the form of Superannuation deposits. Whilst this compulsory system of quarantined income is designed to support their financial needs into retirement, there are limited circumstances when an individual can access their Super early.
Several failed franchisees have been scrutinised for failing to pay employees the appropriate employee award rates whereby business owners claiming that the franchisor did not provide sufficient training and/or the business model was established in such a way that the business could not succeed.
For the seasoned adviser who diligently keeps up with developments in the client risk space, there may not be too much new here, but this article provides a snapshot of some of the traditional warning signs and areas of concern together with a reminder about how more recent legislative changes are now impacting your/our clients.
For the impatient ones among us, the short answer is Yes! SV Partners David Stimpson was recently appointed Liquidator of a company on the application of a major creditor in the Supreme Court of Qld. After making some enquiries, it became apparent the company was trading.
During the financial year ended 30 June 2018, the ATO was the initiator of 20% of all company liquidations and 4% of all bankruptcies during this period. Further to this, the ATO used garnishee powers in approximately 1.1% of all business and individual debts. As of 30 June 2018, the ATO were owed $23.7 billion in collectable debt with $15.1 billion of this debt relating to small businesses.
When you start a business, and obtain advice as to the most appropriate structure to operate the business, the advice received is often to set up a Company, sometimes as the trustee of a trust. One of the main reasons you may operate a business through a Company structure is that it provides limited liability for debts incurred by the Company; that is, a Director or officer of a Company…
As professional advisors, we need to keep abreast of the changing landscape, in particular, the ever evolving tax laws. The Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 received Royal Assent on 1 March 2019. This Bill amends the reporting timeframes for superannuation regarding whether a Director Penalty Notice (“DPN”) is either lockdown or non-lockdown. There has been no change for PAYG and the three-month from due date rule…