A lot going on in the economy and the media at the moment. On the Gold Coast there is a bit of a building surge but at what cost? Another large building company went into liquidation last week and that has resulted in many subcontractors being owed large sums.
If you are experiencing cash flow problems or have concerns about your debtors contact us to arrange a meeting to discuss this and ascertain what steps can be taken to put you in a better position financially.
This months newsletter has very informative and relevant articles on:
· Child death benefits from super
· SMSF tax deductions
· Interest claims on rental properties
· Life insurance policy bonuses and tax
GST Review and ATO Targets
Most transactions in business involve GST these days. It is treated as an additional cost. Therefore business owners are often seeking out available exemptions.
One of the major exemptions is called the “Going Concern” exception. This can have application in the supply/sale of a business, commercial property or farm land.
In these instances, the purchaser is often extremely keen to have the supply/sale be GST Exempt by declaring it to be the sale of a “going concern”. There can be large savings in stamp duty and cash flow advantages.
The ATO and legislation stipulate a number of conditions that must all be met for the GST exemption to apply. The ATO interpret these conditions quite strictly making it difficult to satisfy them all.
The big problem is that, if the exemption is claimed incorrectly, the vendor is the party held responsible for the GST shortfall because they are making the supply/sale.
It is a complicated area. If you are contemplating selling a business or commercial property or buying a business or commercial property, please seek advice on the conditions and requirements.
Taxable Payment Reports and Annual Workcover
A reminder that the Taxable Payments Summary Report is due to be lodged with the ATO this week.
Annual Queensland Workcover returns are due 31 August 2017.
Take Care Col, Ken & The Team at Rede