Important Tax Dates

28 February 2020
• Lodge tax return for non-taxable large/medium entities as per the latest year lodged (except individuals).
• Lodge and pay December 2019 Quarterly BAS

21 March 2020
• Lodge and pay February 2020 monthly BAS

31 March 2020
• Lodge tax return for companies and super funds with total income of more than $2 million in the latest year lodged (excluding large/medium taxpayers), unless the return was due earlier.
• Lodge tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more, excluding large/medium trusts.

21 April 2020
• Lodge and pay March 2020 BAS

Expansion Of Tax Avoidance Taskforce

The ATO has recently expanded its Tax Avoidance Taskforce activity to include top 500 private groups, high wealth private groups, and medium and emerging private groups.

The Tax Avoidance Taskforce was originally conceived in 2016 to ensure that multinational enterprises, large public and private business pay the right amount of tax. The Taskforce’s main role is to investigate what the ATO considers aggressive tax avoidance arrangements, including profit shifting.

As a part of the expansion, the ATO now has three “programs” for private groups under the Taskforce’s umbrella: top 500 private groups, high wealth private groups, and medium and emerging private groups. The expansion that will perhaps affect the most taxpayers will be the program covering medium and emerging private groups. This program includes private groups linked to Australian resident individuals who, together with their associates, control wealth between $5 million and $50 million, and businesses with an annual turnover of more than $10 million that are not public or foreign owned and are not linked to a high wealth private group. The ATO estimates this will cover around 97% of the total private group population.

Accountancy Insurance – Audit Shield Service

You would have received a letter from Harris Black offering you the opportunity to participate in our Audit Shield Service. Whilst we make all efforts to prepare your accounts and tax returns perfectly, we cannot stop a government authority choosing to undertake a review or an audit.

With government authorities increasingly using data matching with other government bodies, banks, Single Touch Payroll and even companies such as AirBnB, audits and reviews are on the rise.

The Audit Shield service has provided effective financial protection to those of our clients who have been subject to an audit, enquiry, investigation or review from the Australian Taxation Office or any other relevant government revenue agency in relation to lodged returns. Whilst we act as your registered tax agent, you are able to opt into this service.

Below is a chart outlining the 2018-2019 Audit Shield claims across Australia:

Source: Audit Insurance

To understand more about the Audit Shield Services please contact your Harris Black team member

Meet Nathan Gordon

Nathan started with Harris Black in 2008 and has since progressed to become a Director in 2013. He is a member of the Chartered Accountants Australia and New Zealand and a Chartered Tax Advisor of The Taxation Institute.

Some interesting facts about Nathan – born in Newcastle, NSW, Nathan says he could give a 40-minute presentation on the history of the Newcastle Knights without any preparation. Nathan’s favourite subject in high school was Maths and his first (and only) job was as an accountant. Aside from necessities, Nathan couldn’t go a day without coffee and a skill he would like to master is golf.

An excerpt of the interview with Nathan is below.

To view the full interview, please click here.

Harris Black Happenings

A couple of reasons for celebration in the Harris Black family so far this year!

Practice Manager Kim Ward (Schluter) and her husband James welcomed baby Julius into the world on 13 January. We are receiving plenty of pics and updates. Looking forward to an office visit soon!

Baby Julius William Ward

Additionally, congratulations to Jacinta Murray for passing her Chartered Accountants qualification. A tough task. Well done!

All the best and congratulations from your Harris Black family!

Reduction of Corporate Tax Rate

The company tax rate is 30% for entities with aggregated turnover above $50 million or with passive income above 80%.

The company tax rate for entities with aggregated turnover below $50 million is generally as follows:

Franking a dividend however is based on the prior year tax rate.

Although it sounds great, many companies will end up with excess franking credits trapped in the company from when the rates were 30%.

How can we help you?

Today’s financial environment demands a regular review of strategy and a focus on execution.