Tax and compliance are challenges all businesses must deal with. In Australia, our taxation system is one of the most extensive and multifaceted systems in the world. At PAS, our team has years of experience in assisting both businesses and individuals with a wide range of tax issues as well as liaising with the tax office on our clients behalf.
Business Activity Statements
Comprising a business’s GST, employee PAYG withholding, corporate tax instalments and potentially more, Business Activity Statements can be overwhelming. At PAS we will take the hassle out of this process by sourcing the relevant information from your accounting records, reviewing this information to ensure all information has been accounted for and allocated correctly and lodging the return with the ATO.
The multifaceted and ever-changing nature of the Australia taxation system means that lodging a tax return can be a nightmare. Business are often challenged by the ATO to provide evidence of the deductibility of their expenses: a process that can be tedious and prolonged. At PAS we work with clients to identify deductible expenses and business rebates available to them to ensure they get the best tax results. We also liaise with the ATO on our client’s behalf to ensure time is not wasted dealing with these minor issues.
All Australian states and territories apply a payroll tax on wages paid, or payable, by an employer. A businesses payroll is required to be in excess of a threshold of approximately $600,000 for this tax to apply. However the amounts included in the total payroll figure used to calculate this tax can be unclear and complex (i.e. grossed up fringe benefits, directors fees, payroll across a group of related companies etc.). At PAS we can assist by:
- Helping you understand your total payroll for this tax purposes
- Determining whether or not you exceed the threshold
- Preparing & lodging monthly returns
- Preparing annual reconciliations & adjustments
Capital Gains Tax
A Capital Gain or Loss is the difference between what it costs to acquire an asset and what you receive upon disposal of this asset. Gains are taxed as part of your taxable income whereas losses cannot be used as a deduction, but can only be used to offset other capital gains. CGT is a vast and complex area of the Australian Taxation system, there are several assets that are exempt from CGT (i.e. your home) as well many other rollover & concessions. Our team of professionals have a number of years’ experience in dealing with all sorts of capital gains tax issues including:
- Calculating & maintaining CGT asset costs bases
- Maintaining CGT records (i.e. carry forward capital losses)
- Identifying CGT events
- Determining whether an asset is eligible for rollover, concessions or exemptions
- Calculating tax payable on disposal of an asset
Fringe Benefits Tax
Fringe Benefits Tax is a tax employers pay on certain benefits that they provide their employees (i.e. company car, entertainment, housing etc.). These benefits can be provided directly to an employee or an associate of an employee (i.e. family or friend) and may be in addition to, or form part of, their remuneration. The tax payable is calculated based on the “taxable value” of the benefits provided to employees through-out the year. Similarly to CGT there are certain exemptions and concessions that businesses can apply to help reduce their tax liability. At PAS we can assist businesses by:
- Calculating the taxable value of benefits provided
- Including determining business use vs private use
- Determining eligibility for concessions or exemptions
- Calculating Fringe Benefits Tax Payable
- Lodging Fringe Benefits Tax Returns
- Analysing the potential fringe benefit tax implications of employee benefits
An important process for all business, tax planning takes a look at projected tax liabilities for the next 12-18 months. By taking your trading results to a certain point in the year and projecting profit for the remainder, we are able to forecast your taxable income. We then liaise with the tax office to determine any instalments or your prior year tax liabilities you may have to pay to give a complete picture of all tax payments in the near future. Our experienced tax experts can then determine legitimate tax minimisation strategies that businesses can implement prior to the end of the financial year to help reduce these liabilities.