It’s now time for most businesses to get the ball rolling on their 2010 returns.
If you are small, you may still have until next May to lodge your returns, but if you are classified as large, you could have to lodge as early as December this year. That might seem like a an eternity away but given the many tax issues that can crop up it’s best to start early. And if you are behind on those returns, you must lodge as soon as possible anyway.
We advise our clients to do at least some tax planning prior to year end. Our preference involves preparing draft – if not almost final – accounts at key stages during the year and then finally looking at the year end position. Where do you stand? Are you in a position to make some more tax efficient choices? Is there scope to top up superannuation, take advantage of government incentives or many other strategies that can benefit you and your business? We think about it with you. The Lucentoraccounting team is expert in preparing financial accounts to a high standard that you can rely on.
In preparing the annual tax return, as well as all your GST obligations, its is of paramount importance to prepare all documents with a keen attention to detail. The ATO are using data matching from BASs to tax returns to ASX information to land tax records… I am sure you comprehend – it is important that your declarations are consistent to avoid being an audit target. We prepare income tax returns very accurately so that that the risk of an audit “red flag” is reduced. Nothwithstanding this, our paramount aim if, of course, is to give you piece of mind. To let you sign off on another year with the confidence that all your tax obligations have been met correctly.
When all is said and done you may be presented with a final tax bill. Consider this. Many businesses are now struggling with cash-flow. Preparing for a large tax payment can be a task in itself. The ATO is very tough with late payers, sending out demand notices within a few weeks of missing payment. But did you know that they are willing to hear you out? If you contact them when the debt is due, they can organise a payment plan for the debt, and in many occasions waive any interest charge. Of course, it is not wise to use the ATO as a revolving interest free credit facility, but when the unexpected happens, such as a severe business slowdown, it’s good to know your tax cash flows can be managed. At Lucentor, we have much experience dealing with the ATO on these matters and can help you set this up.