Tax Planning: More than just compliance

06 July 2017

It’s not surprising that meeting tax obligations is often considered ‘just one of those things’ that comes with running a business. Year end and regular compliance activities can even be thought of by some as a burden.

If not fully understood and actively managed, tax obligations can result in additional costs or lost opportunities for businesses. To get you on the path to a more proactive approach to tax planning, consider our checklist below:

  • Are you structured correctly to be tax efficient on ordinary income, whilst also receiving access to capital gains tax concessions?
  • Is your business structured to maximise cashflow through efficient tax management? For example, have you considered whether the Australian Taxation Office (ATO) prescribed PAYG instalments are appropriate?
  • Have you considered whether entities should be consolidated for income tax or GST and grouped for payroll tax purposes?
  • As a Director, are you adequately informed of your business’ financial position, and the status of PAYG Withholding and SGC payments?
  • Are you aware of the Single Touch Payroll requirement commencing from 1 July 2018?
  • Have appropriate structures been planned to protect intellectual property interests, and to maximise returns from international business interests?
  • Do you have a Division 7A compliant loan agreement that will cover all future loans to owners or their associates?
  • Have you reviewed your trust deed to ensure you understand how it interacts with the various tax requirements?
  • Should you be considering any restructuring to take advantage of the Small Business Entity provisions prior to tipping over into a larger tax category?
  • Have you thought about making additional dividend payments to take into account upcoming franking credit changes?
  • Do you have any contractors that may be treated as employees for Super Guarantee purposes?
  • Do you understand the tax implications of merger or acquisition activities?

At the end of the day, it’s important business owners are comfortable that they understand the impact tax legislation has on the business, on cashflow, on Director’s liabilities, and ultimately, on returns to owners.

Whether you want to structure your business to protect IP, be tax efficient in accordance with ATO regulations, or deal with international taxation issues, our team can help you develop a tax-effective solution. Contact us today to get started.