General Tax Advice
Do you have questions? We have quick and clear answers
How does Calibre deliver tax advice?
We believe appropriate tax advice is all about understanding the facts of your business. Our tax accountants need to be as thorough as possible when grasping your situation in order to effectively apply the relevant tax legislation in a manner that meets your desired outcomes.
How should I manage my year-end tax compliance assignments?
The key is getting an early start on your year-end tax compliance. Our tax accountants approach issues such as your tax returns by planning throughout the year, not just at tax time. In many engagements we do the quarterly (or in some cases monthly) business activity statements and through that process we try to pick up on tax planning opportunities and risks which may be relevant at year end. Just prior to each year-end our tax accountants do a planning exercise with you in order to outline anything that needs to be done to manage your tax for the year. This process also gives you an idea of the tax your business needs to pay, so you can plan cash flows, and do so well before tax time. We often find that this approach can help you avoid nasty surprises with your tax compliance.
What should happen after I complete my year-end tax returns?
Your business’ year-end tax returns reveal a lot about your business and financial affairs. Our tax accountants are able to identify risks and opportunities from an accounting, commercial and tax perspective. So, after your returns are completed, we get in touch to with you, either face to face or on the phone. Our tax accountants are able to let you know about potential future problems, if you’re missing any small business grants or tax breaks, or if your financials can be improved. Our tax accountants can clearly give you options to better your business post-tax; after all, this helps our business grows as well as yours.
I’ve just learned that I’m being audited. What do I do?
Next, contact the tax accountant who helped you lodge the relevant returns. You need to find out their view of the risk areas and the potential exposure (if any). From this, you can determine whether your tax accountant has the right communication skills to deal with ATO or OSR officers – double check their experience in these matters. Measure their approach. If you are not comfortable with their expertise, both as tax accountants and in terms of their ability to communicate with you and the relevant government officers, then you should consider finding a more experienced tax accountant.
What does Calibre’s virtual CFO service include?
Our business advisors and virtual CFOs offer a variety of on-going engagements with clients. These range from simple bookkeeping to a comprehensive outsourced finance and virtual CFO function. These are undertaken based on your needs, which our business advisors will outline together with you prior to engagement. We can work at your premises or we can work remotely: it’s up to you. These assignments can include transactional bookkeeping, monthly financial reporting, financial analysis, ongoing tax compliance and ongoing communication with you about your business.
How do I restructure my entity successfully?
Successful entity restructuring depends on how well you know your business and your business and financial goals. A structure cannot be devised without this understanding. So our business advisors spend the majority of the time analysing the ins-and- outs of your business at great depth. We review your financials. We understand how your business operates and the risks it encounters. We understand your organisational structure and how you organise your staff. We understand your personal financial circumstances. Ultimately, your restructure should a) mitigate business risk, b) be flexible enough to attract investors, borrow money etc., and c) manage tax both within the business and through to the ultimate owners.
How do I quickly work out if I’m eligible for small business tax concessions?
The first step is to determine your revenue for the year. At present if your business groups’ annual turnover is less than $10 million then you are eligible for small business concessions for income tax – for example, the simplified depreciation and the $20,000 asset write off. If your business groups’ turnover is less than $2 million you may be eligible for the Capital Gains Tax Concessions. Remember, you need to measure the turnover of all the businesses which you control; it is an aggregated test. If you are unsure, please feel free to contact our business advisors for a straightforward assessment.
Am I doing Research and Development? Am I missing out on R&D Tax Incentives?
First of all, you need to ensure that you are undertaking your potential R&D activities through a company. R&D is not just about a brand new product you are inventing – it is also covers devising new processes that improve your business regardless of your industry or business activities. Think through the following questions:
- What problem am I trying to solve in or through my business?
- Have I devised a solution to that problem? How did I come to this solution? Was there an existing solution that I am basically using or have I come up with an independent idea?
- How have I tested the solution? Have I used a scientific approach – e.g. aim, hypothesis, results, conclusion, trial and error?
- How have I documented all of the above?
Our business advisors can give you certainty about your supposed R&D. Calibre has the experts who can evaluate your research and development activities and help you access R&D tax incentives.
AUDIT AND ASSURANCE
Do I need an external audit?
Your company needs an external audit if it is a public company (i.e. “Ltd”), a large private company (i.e. “Pty Ltd”), or a foreign controlled private company. A large private company is a company that meets two of the following three criteria: 1) Revenue over $50 million, 2) Gross Assets over $25 million, 3) Full time equivalent employees over 100. These are statutory requirements – these kinds of companies are required to lodge audited financial statements with ASIC. You may also need to undergo an external audit if it is requested by a bank or your shareholders. Your business advisors can measure in advance when and how you can perform an external audit, and how to find the most competent auditors.
What services does Calibre’s Korea office undertake?
The Calibre Seoul office is able to service all of your accounting, business advisory, and tax needs in Seoul. If you are thinking about setting up operations in Korea, our business advisors can be trusted to cover all the necessary requirements in Korea. Conversely, if your business is Korean and you are determining whether to expand into Australia, Calibre Seoul can be your gateway to setting up in Australia.
How do I start doing transfer pricing that is compliant?
You should start with asking yourself or your tax accountant whether there is a commercial need to adopt a transfer price between your entity in Australia and its related company overseas (or vice versa). In many circumstances you need transfer pricing to determine whether your overseas operations are making a profit – particularly when this financial analysis uses a lot of resources at your Australian office (or overseas headquarters). Next, you need to determine the market cost of those resources. This is where you may need Calibre’s expert tax accountants. Our tax accountants can also document the transfer pricing costs in a way that meets complex rules in Australia and overseas jurisdictions.