In the process of buying a business, the purchaser should conduct a due diligence review to establish that they are buying what they believe they are buying. The review identifies areas of risk and contingent liabilities that the business may have and to factor these risks in the purchase price. When buying a business or [...]
Browsing Posts in Tax Deductions
This article contains a summary of the key tax changes in the 2011 budget that impact on small businesses. As always, there are winners and losers. A small business for tax purposes is defined to have a turnover of less than $2 million GST exclusive. Immediate deduction for asset purchases Small business will obtain an instant [...]
If you operate a business as a sole trader or a partnership, you are required to lodge an individual tax return and pay your tax dues annually. So the question arises: What items must appear in my tax return? Completing your tax return generally requires the declaration of income and expenses you will deduct in [...]
When operating your business as a company, it is your duty to lodge an annual company tax return showing your taxable income and the amount of tax due on that income. Limitations of deductions Taxable income is computed by deducting certain expenses (also referred to as allowed deductions) from your assessable income. For these expenses [...]
If you carry out work at home, you may be able to claim a deduction for some of the expenses relating to the area that you use for business purposes. In all cases the taxpayer needs to: be able to prove that expense have been incurred and be able to establish a connection between the [...]
The Fringe Benefits Tax Assessment Act 1986 (“FBTAA”) provides for substantial concessions where an employer pays for various costs associated with relocating an employee. These expenses can be met directly by the employer or passed on to the employee as part of a salary sacrifice arrangement. These concessions are available only if an employee relocates [...]
This initiative allows eligible taxpayers to get an education tax refund for some of their expenditure on education costs. Key Points: Eligible taxpayers are those that receive Family Tax Benefit Part A Eligible expenditure includes – home computers or laptops, related computer equipment, home internet, computer repairs, school text books, stationery. Expenditure that cannot be [...]