Alright, you brilliant entrepreneurs! Let’s face it, tax season can feel like trekking through a jungle without a map. But hold on, we’ve got a life-saver for you. Drawing on insights from a former ATO official, we’ll guide you through some smooth moves that can keep your small business out of the ATO’s penalty box in 2023. Let’s get down to it!
- Honesty: The Best Policy for GST, PAYG, and Superannuation Guarantee Withholding Borrowing from the withheld funds pot to clear other business debts? Not a good idea. The ATO frowns on this misuse. Consult with a professional accountant and handle these funds with integrity. Remember, honesty isn’t just a virtue, it’s also smart business.
- Draw the Line: Keep Personal and Business Bank Accounts Distinct Combining personal and business finances? That’s a recipe for a tax nightmare. Keep your funds separate and clear. This not only makes your tax affairs straightforward but also ensures your transactions pass the tax sniff test with flying colours.
- Don’t Play Hide and Seek with Fringe Benefits Tax (FBT) FBT – it’s not just an annoying acronym. It’s a tax that applies to benefits you give to your employees outside their regular pay, like company cars. Beware of claiming exemptions on benefits that are more personal than professional. The ATO has eagle-eyed systems to detect any mischief, so play by the rules.
- Navigate Family Trusts with Care Watch out, entrepreneurs! The ATO has its magnifying glass over family trusts. Especially those, who are a bit creative with fund distribution claims. If this rings a bell, it’s high time to connect with an accountant and sort things out. Safety first!
By heeding these pointers, you’re setting yourself up for a breezy tax season in 2023. Remember, a smidge of planning and a dash of organisation today, saves you from a tax migraine tomorrow.
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