Business Activity statements

With quarterly lodgment causing headaches for small businesses across Australia, it’s no wonder that over $13 billion is owed to the ATO in overdue tax by these small and medium sized enterprises (SME). A good litmus test to check the health of cash flow often occurs at business activity statement (BAS) lodgment time. A BAS is used to report and pay, GST, PAYG instalments and various other taxes. At this time a lot of payments are being made, therefore it can be a key period in which to assess the lifeblood of the business.

Even in times of financial stress it is imperative to keep on top of BAS lodgments. If not, non payment can attract a late lodgment penalty which will by permanently recorded as a bad lodgment. Therefore, even if you can’t pay, it is best to do your best to try and lodge on time.

In such circumstances in which you are unable to pay by the due date, entering into a payment plan can be a solution to help figure out how and when you will be able to pay off your tax debt with the ATO.

However, the best way to avoid stress around BAS time is to stay continually on top of financially matters of the company, ensuring that enough money is kept aside for tax purposes. Often times, it can be convenient to spend GST money collected to ease cash flow concerns, yet putting money into a high interest separate bank account can be a good way to ensure that the money for GST and tax come BAS time.

Well respected leading Brisbane insolvency practitioner, Jonathan Paul McLeod recommends seeking help and information as early as possible. In this way speaking with and insolvency specialist can help uncover options and create solutions. Please feel free to contact us today at McLeod and Partners for a confidential discussion of cash flow concerns or any other financial issues you may have.

 

Annulling a bankruptcy

A period of bankruptcy can often cause instability and stress to those involved when you have been declared unable to pay your debts. Usually, there are two ways out of bankruptcy, either a discharge where the bankruptcy has finished it’s 3 year course and no objections to discharge have been recorded or a cancellation of bankruptcy via annulment.

The Tax Office is continuing its focus on illegal phoenix activity

The Tax Office is continuing its focus on illegal phoenix activity within the pre-insolvency industry with 80 officers conducting access visits without notice on 2 sites across Victoria yesterday [Mon 3.4.2017].

What employees need to know about insolvency

When a company faces liquidation or bankruptcy it can be a tumultuous time for everyone involved, especially for the employees who are often left in a place of limbo without a job and without their wages. Luckily, the Australian Government provides financial assistance to cover certain unpaid entitlements to eligible employees who lose their jobs due to liquidation or bankruptcy of their employer under the safety net of the Fair Entitlements Guarantee (FEG).

A company that owes me money has gone into liquidation

You may be wondering, now that this company has gone into liquidation will I ever get my money? Rest assured, even though you may feel like you are struggling against a behemoth, it is important to be aware of the options available to you.

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