Tax – What are the debt equity rules?

The debt equity rules came into effective operation on 1 July 2005 when the transitional period ended. The rules are aimed at stopping the long existing practice of companies repaying loans from shareholders out of profits in a tax free way. The debt equity rules would only apply to private companies having a turnover greater … Read more

Tax – What is Division 7A?

Division 7A of Part III of the Income Tax Assessment Act 1936 entitled “Distributions to entities connected to a private company” was introduced in 1998 in an attempt to stop people taking money out of companies in a tax free way. Division 7A, generally, makes: payments by; transfers of property from; loans from; and guarantees … Read more

What are subcontractor statements and what to do about them?

Q: A NSW business can be liable for the business’s contractor’s liability for NSW payroll tax, wages and workers compensation insurance premiums of the contractor unless the business complies with the subcontractor rules. A: The NSW industrial relations, payroll tax and workers compensation insurance laws potentially expose businesses that retain contractors to the contractor’s payroll … Read more

What do I need to do to sell my business?

You have made the big decision to sell your business – now how do you go about it? The first decision you need to make is who you will sell your business to. Is it the general market place and are you going to use a business broker or are you able to sell out … Read more

What tax things should I be careful of before I sign any contract?

Tax and revenue law is becoming more and more complicated. Before signing any contract you should consult with both your lawyer and your accountant and ensure that they talk to each other to make sure that all possible tax ramifications of your contract have been taken into account. Some specific issues that arise include: GST … Read more