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  • Got a company or trust? We have new info for you

    9 March 2022

    Companies and trusts have their benefits, but they’re also two of the more complicated business structures.

    If you’re a director, shareholder, associate of a shareholder, trustee or beneficiary, and you use your business’s money or assets for private purposes, remember to:

    • keep complete and accurate records to explain these transactions
    • report them correctly in your company or trust tax return and in your individual tax return.

    There can be unintended tax consequences if you don’t. You may trigger Division 7A, which means that transactions may be treated as an unfranked deemed dividend in your assessable income and you will need to pay more tax.

    Money or assets you wish to use for private purposes could include:

    • salary and wages
    • fringe benefits
    • director fees
    • dividends
    • trust distributions
    • loans from the trust or company
    • allowances or reimbursements of expenses.

    There are different reporting and record-keeping requirements for each type of transaction.

    Our new web content includes examples and more detailed information about the different types of transactions to help you.

    Remember, registered tax agents and BAS agents can help you with your tax.

    Find out more

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