Paying dividends is a normal part of company life; generate the profits, pay the tax, and then look at what dividends are available for the shareholders.
Changes in the Corporations Act earlier this year mean that directors need to consider a new set of rules before they declare or pay a dividend. Section 254T of the Corporations Act provides the rules governing dividends.
In the past, directors needed to ensure that dividends were paid out of profits. This has now changed.
If you’re planning your Christmas budget for your team and your clients there are a couple of things you need to know to keep the Christmas tax scrooge from ruining your Christmas celebrations. We take a look at what you can and can’t deduct and what is and isn’t likely to incur Fringe Benefits Tax (FBT).
Q. We think we may be entitled to both Research & Development concessions and possibly Export Market Development grants. We’ve overlooked these in the past, but want to take advantage of them if we are entitled to them. What is the best way to confirm our entitlement and then make our claims?
A. This is something you should take specialist advice on. If your accountant works in this area they should be able to assist you to identify both whether the expenditure incurred in the 2010 financial year is eligible expenditure and then also quantify your claim entitlement.
Q. We have a well established business and own our business premises. Everything has operated in a single partnership structure. This has kept our accounting and reporting requirements quite simple. Friends keep telling me we should be looking at a different structure. Do you have any comments?
A. The choice of business structure is generally determined by a range of influences and there is no one answer that is right for all circumstances. The key issues to consider are risk protection, tax efficiency, simplicity and efficiency of management and succession. Using a single partnership structure you probably have the simplicity and efficiency of management piece covered. The issue to look at is whether the other areas are equally well managed or whether the benefits of alternate structures outweigh the cost of change.
Australia’s industrial relations system has undergone significant changes over the last year with the introduction of new Modern Awards and the National Employment Standards and a new unfair dismissal regime.
To assist with understanding the changes and managing the risks to your business, you are invited to attend a briefing by Norman Waterhouse lawyers.
Hayes Knight is the brand name of the Hayes Knight group, a network of independent firms across Australia and New Zealand. Each firm within the Hayes Knight group is, and acts as, a separate legal entity. Liability for each Australian entity is limited by a scheme approved under the Professional Standards Legislation.
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