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Taxation

 

Income Tax

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:

  • Individual;
  • Trust;
  • Partnership; and
  • Company

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.

Goods & 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 with confidence.

Fringe 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 include:

  • access to a motor vehicle;
  • paying expenses of an employee;
  • entertainment;
  • 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.

 



TIP

One of the first steps to building wealth is to rid yourself of all non-deductible debt 


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