Whether you're an individual,
partnership or company, income tax is usually one of the largest
single expenses you have. The rules around deductions have become
complex, even for professional tax advisors. Substantiation
requirements, depreciable assets, non-commercial losses and
alienation of person income all add a layer of complexity to
completing a tax return.
At Phase III we are able to offer
assistance with the preparation of:
- Partnership; and
income tax returns.
Returns are lodged
electronically, usually resulting in assessments/refunds within 14 days.
At Phase III, we specialise in
assisting clients with investment properties. Ensuring you claim
all the deductions you're entitled to is important if your
investment in property is to be optimised.
We have a computer model that
allows us to use a client's income tax return information on their
investment property to project before and after tax cash-flows, as
well as capital growth projections. Alternatively, based on a
series of assumptions we can model the likely cash flows and
capital growth over, say, the next 10 years.
& Services Tax (GST)
The introduction of GST in July
2000, along with the package of tax reform that accompanied it,
presented challenges for many businesses.
While conceptually simple, the
GST places a greater onus on businesses to keep their bookkeeping
and accounting up to date. With either monthly or quarterly
reporting required for most businesses, staying on top of the
bookkeeping is important if GST is to be calculated correctly.
Modern accounting packages make
GST reasonably straight forward, however, our experience shows
that many clients:
- do not configure their
accounting software application correctly for GST;
- have difficulty in allocating
the net amount paid back against GST Collected, GST paid,
deferred tax paid, FBT, and PAYG.
For most small-medium enterprises
accounting for GST should not be unduly onerous if implemented
correctly. Our team can assist you set up your GST accounting and
bookkeeping systems to make this process easier or, if you prefer,
prepare you Business Activity Statement (BAS) for you.
We can also prepare simple
instructions to assist you account for, and complete, your own BASs
Benefits Tax (FBT)
If you are an employer and
provide your employees with any form of non-cash 'benefit' then
you may be liable for fringe benefits tax. Common benefits
- access to a motor vehicle;
- paying expenses of an employee;
- free or discounted goods or
services to employees;
- loans at discounted rates
As with GST, the actual
calculation of the FBT liability is not difficult once the
required information has been recorded - invariably it is ensuring
that the needed information has been recorded during the year that
causes many small-medium clients the problem.
The rules governing FBT also
provide some relief from liability - such as the first $500 for
in-house benefits, motor vehicles held for over 4 years and
application of the 'otherwise' deductible rule. Obtaining the
benefit of this relief requires appropriate documentation and, in
the case of the 'otherwise' deductible rule, signed declarations
from employees. We can help work through these issues and ensure
you are meeting your obligations in a tax-effective way.
||Capital Gain Tax (CGT)
CGT is a broad and complex piece
of legislation with far reaching consequences. The legislation's
definition of a CGT 'event' covers situations that many taxpayers,
particularly small-medium business taxpayers, may not expect.
Family or business re-organisations, changes in partnerships or an
individual transferring assets into a family trust can all expose
the 'asset' to CGT.