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Leo Colgar
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7 followers
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ATO is coming on our way. It's a good opportunity to express your opinion and ask questions.

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ATO follows every single tax agent very closely. I heard it myself from the head of the Compliance Department and now this article talks about it.

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The Hills District Independent - August edition is available now all around the Hills area. Check out page 17 for my article. This month's topic is Government Grants.

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Have you seen my new article in The Hills District Independent? it's about tax compliance for Uber drivers. Here is the link, check out Page 18 to see me:

Have you heard about the new certification rules for property sales above $2 million?

According to the new rule announced by ATO on 19 May, Australian residents who are selling a taxable Australian property with a market value of $2 million or more need to obtain a clearance certificate from the ATO. It is all about ensuring the compliance before passing the title. The certificate is easy to obtain because the application process is online. For more information, please click the link below:

https://www.ato.gov.au/Media-centre/Media-releases/New-tax-rules-for-property-sales-over-$2-million/

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Great lunch with 2 cabinet ministers and a brilliant candidate. On my left we had Senator Michaelia Cash, Minister for Employment. Far right hand side is the Minister for Defence, Senator Marise Payne. Standig next to me is Yvonne Keane, federal candidate for Greenway.
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CLIENT STORY

Today I would like to tell you the story of my new client, B.

B is an IT contractor who works for himself from home in a company structure (PTY LTD). Like you and I, he is a small business owner.

He was recently audited by the ATO for Fringe Benefits Taxes (FBT) that were not reported in the past. He has accepted responsibility and is now seeking a way to arrange the resources to pay the FBT.

What did he do to deserve it?

You may be surprised, but the actions leading to the findings of the audit are actions taken by small business owners every single day.
We will now consider each action that lead to this wrongdoing:

1- B drove a company car. He has never had a private vehicle. The ATO was able to pick him from the Service NSW database as it was obvious that he used the car for private purposes too.

Even though he denied this, he wasn’t aware of the rule that FBT also applies to company cars that are kept in the director’s own garage. Even if he doesn’t drive it after hours for his own purpose, FBT still applies. The fact of the matter is that he had the key in his possession at all times and the car was available for his use at all times. End of the story. His previous accountant had never advised him of this rule.

Furthermore, he didn’t keep a logbook to justify his business use. This ultimately led to the ATO rejecting this argument.

2- B used a desktop version of accounting software. This meant that he and his accountant had two separate installations with different data.

3- B had no previous accounting knowledge but still did some of his own bookkeeping. He was assured by the accountant that he would correct any errors at the end of financial year. The accountant didn’t keep that promise.

4- B withdrew all company funds and deposited them into his home loan offset account. He used this account to pay all business expenses. His accountant did not advise him that this was illegal. He wasn’t aware that all the withdrawals could be deemed dividends by ATO. And they actually were.

5- B knew that the accountant was making mistakes on MYOB but did nothing to stop it.

6- B ended up with a loss every year, despite the fact that he maintained the lifestyle of a wealthy person.

7- B thought that he would never be picked up by the ATO because he was a small business.

Do these actions seem familiar?

Although you operate a small business, you are not immune to an ATO investigation.

The trouble was not over yet. After the ATO finished the auditing the FBT, they began questioning financial statements. Now, they are asking questions about the nature of some expense items on profit and loss statements from as far back as 4 years ago!

If you have a small business and are not sure if you are violating any rules, ask your accountant to check for you. And never accept an assurance. If your gut is telling you that something is wrong, then you are probably right.

I offer a financial health check to anyone who is in this situation. First half hour is free.

We are in our new office now. 33/9 Hoyle Ave, Castle Hill, NSW 2154
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