Seamax Engineering Pte Ltd | “Thelack of clarity is around passive investment companies
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“Thelack of clarity is around passive investment companies

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“Thelack of clarity is around passive investment companies

09:08 21 February in Uncategorized

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Designer Replica Bags The Australian Taxation Office (ATO) has https://www.excelhandbag.com started processing small business company tax returns at the 27.5 per centtax rate,but warns that businesses who are still using the higher 30 per cent rate need to seek an amendmentthemselves as the agency will not automatically do it.The problem is, the onus is on businesses (or their tax advisers)to know whether they are eligible for a tax cut. The ATO says on its website that where a company has lodged their 2016 17 tax return using the 30 per centtax rate, andbelieve they are entitled to the 27.5 per centtax rate, “they should seek an amendment as we are unable to accurately identify these taxpayers”.It says this is because “it is not possible to definitively state whether a particular company is carrying on a business”.There’s potential for the ATO to adopt a different position to the taxpayer and/or for the government, if they disagree with the ATO, to come up with a legislative solution”This is always question of fact,” the ATO states.”While most companies will carry on a business in a general sense, this does not mean that every gain made by a company will be ordinary income and assessable.”But Chartered Accountants tax leader Michael Croker said that sincethe ATO had not yet stated what criteria they will be using to judge whether a business is eligible, it would create a compliance nightmare.”Thelack of clarity is around passive investment companies where there’s no shopfront or employees, noregisteredbusiness name; it’s just a mum and dad company withinvestmentsin listed shares, a rentalpropertyand bonds.”There’s potential for the ATO to adopt a different position to the taxpayer and/or for the government, if they disagree with the ATO, to come up with a legislative High Quality Fake Bags solution.”Small businesstax debtsThe tax man is also disclosingsmall business tax debt information to credit reporting agencies. The ATO hasa debt book of about $20 billion, themajority of which is made up of small and medium business debts.In a recent speech to the Queensland Tax Forum ATO Second Commissioner Andrew Mills saidthe ATO will have discretion to disclose tax debt information to credit reference agencies.”The measure does not oblige us to disclose this information,” he said.”The ATO understands that from time to time taxpayers have cash flow issues and works with them to repay debts, for example, by using payment arrangements.”ATO to work with credit agenciesDebts will only be reported in cases wherethe tax debt is over $10,000 and has remained unpaid for over 90 days, andthe debt is not in dispute.That is, if “a taxpayer remains disengaged after the ATO has pursued normal debt collection procedures to collect an overdue debt,” Commissioner Millssaid.”Debts that are genuinely in dispute will not be reported nor will debts under payment arrangements,” he said. Designer Replica Bags

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