Companies in Business
It’s no wonder most businesses have been set up as companies – they have the obvious benefit that income is accumulated at 30% tax and the business benefit of limited liability.
But the government (through the ATO) is concerned that business owners are not following the rules of the game. You should consider the following issues as a minimum when looking at the tax risks of your company:
- do you have loans to shareholders or their associates?
- does the company have a loan to a related trust?
- are payments to family members on market terms?
- do all GST and income tax returns match what has been provided to banks and the final financial statements?
- has the right amount of fringe benefits tax been paid?
- have losses tests been passed?
- are any capital gains tax concessions available?