11 March 2021
Your company is a separate legal entity from you as a director or shareholder. The money your business earns and its assets belong to the company.
This means it’s important to keep appropriate records and correctly report transactions if you use company money or assets. This includes if you:
For example, you may do it through:
Not correctly reporting and keeping appropriate records for transactions can result in an unfranked deemed dividend being included in your assessable income.
If you realise that you’re not correctly reporting these transactions or keeping appropriate records, talk to a registered tax professional and make sure that you correctly report the use of company money or assets in your next tax return.
If you have made a mistake or left something out of your previous tax returns, you can lodge an amendment.
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