Most salaried individual will have reporting obligations to ATO and pay income tax. In many cases, computing and reporting a person’s tax liability is not that difficult. Similarly, commercial establishments be it a company, partnership or sole traders, also need to report and pay various taxes. It is a well-known fact that the Australian tax laws are complex and this usually presents some difficulties for small and medium-sized business establishments. On one hand, small businesses do not have the financial resources necessary for employing full-time accountants. On the other, if they fail to meet their obligations under Income Tax Act, they could fall foul of the Australian Tax Office.
Activity Statements – An Essential Element of ATO Reporting
Every Australian business needs to register for an Australian Business Number (ABN) and a Tax File Number (TFN) for lodging its annual income tax returns and activity statements. If your business or enterprise has a GST turnover of $75,000 or more you must register for GST. The tax reporting to ATO is through Activity Statements and Income Tax Returns.
There are two types of activity statements that business owners need to complete. These are Instalment Activity Statements (IASs) and Business Activity Statements (BASs). IAS is used to report and pay amounts withheld from employee’s wages and salaries, PAYG Income Tax Instalments and FBT Instalments. BAS is used to report the following:
- – Goods and Services Tax (GST)
- – Pay As You Go (PAYG) income tax instalment
- – PAYG tax withheld
- – Fringe Benefits Tax (FBT) instalment
- – Luxury Car Tax (LCT)
- – Wine Equalisation Tax (WET) and,
- – Fuel tax credits
Business owners will need to complete and lodge the BAS/IAS on a monthly or quarterly basis. Often preparation and lodging you activity statements timely and correctly can be a difficult and confusing process.
DSV Partners – Resolve Your Tax Obligations and Bookkeeping Woes with a Tax Agent in Sydney who has your best interest in mind
You can avoid stress and eliminate risks simply by being confident that your reporting obligations are sorted out and activity statements are lodged correctly.
When you require top-notch accounting services for your small business, you’ll need the services of an expert. This is precisely why many small businesses rely on DSV Partners for their accounting and tax-related requirements. Unlike other accounting firms, we invest a lot of time and effort towards understanding your business and financial goals. Knowing your objectives enables us to navigate the complex tax and regulatory laws that small businesses need to comply with. From maintaining your accounts accurately to providing you with optimised tax planning solutions, we do it all. For more information, call us at 02 9633 4893.
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