“Why should I see my accountant about tax planning?”
For most businesses the last 12 months have been a fairly rocky road with changing consumer spending patterns, poor crops, rising interest rates and declining sales. Hence it would make sense to ensure that you avoid getting taxed unnecessarily on what you did make or consider ways to minimise your potential losses prior to 30 June.
Typical issues beyond the normal tax issues that you might want to discuss with your tax adviser include:
- Ensuring your Family Trust Distribution Resolutions are provided to your accountant prior to 30 June
- Consider asset protection issues
- Consider whether investments outside of super are the most effective tax strategy
- Any business succession issues
- If a farmer: the use of FMDs or available allowance or grants
- Consider whether your Will and BDBN are up to date and are the most tax effective strategies
- If nearing retirement consider whether starting a pension is right for you
- If you are an employer are you on top of your obligations such as SuperStream
A typical tax planning session will take between 1 – 2 hours and will require a little bit of preparatory work beforehand. Typical outcomes include:
- Preparation of interim accounts to 30 June.
- An estimated tax liability for the financial year.
- Preparation of a personalised Tax Planning Scenario Summary Report with conclusions.
- A meeting to discuss legal alternatives to reduce your tax and the best option to suit your circumstances.
Paying taxes is part of life so ensure you are paying no more than you are legally obliged to by seeing your accountant before 30 June!
Richard Kemp – Watts Price Accountants
The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.