Above all talk to your accountant. Every business is different and you need to take advice from someone who understands your current position.
Having said that, there are some good ‘housekeeping tips’ that almost every business should review. Here are 7 of them.
Some legal advisors are good at drafting wills… they look at the legal aspects but don’t necessarily look at the tax implications.
We recently had a situation where a client’s family company owed one of the shareholder/director’s approx $600,000. This client’s legal advisor had proposed that the loan be forgiven in the shareholder’s will. The consequence of this was that the loan, which could be repaid to the shareholder at any time ‘tax free’, would now be a ‘taxable dividend’.
Had we not stepped in with our effective Estate Planning advice, the end result would have meant that when the loan was repaid, the tax payable would have been in the vicinity of $250,000!
The media has widely labelled the 2010/2011 Federal Budget the ‘no-frills’ budget and they are not wrong. The Government has released a Budget filled primarily with past announcements, leaked initiatives and a myriad of technical amendments.
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.
Loading ...