We’re glad to hear the head of the ATO, Chris Jordan, has come out recently and commented on tax obligations for small business people. It’s very complex, but so important that small business people get it right.
Mr Jordan mentioned that disputes or misunderstandings typically occur when small businesses fail to comply with their GST or PAYG obligations.
“If you don’t make any profit, you don’t pay tax and that makes sense but you do withhold money from salaries, you do collect GST, you do have an obligation to pay super and Australia is not the longest but the second longest period of time in the world where you can collect something and not pay it,” said Mr Jordan.
Good tax accountants should guide their clients through the complex system.
Once the ATO beds down the Single Touch Payroll system throughout the whole of the business community over the next 3 years, small business people will be made to pay their obligations in a timelier manner. This will clean up those in the wrong business or deliberately ignoring employee obligations, hence making Australian Business better.
If you need assistance understanding tax for small business, contact Paris Financial office on 03 8393 1000 and a Tax Champion can help you.