ATO eyeing tax avoidance via trusts warns small business accountants Sydney
It is almost a known practice that people are using trusts as a shelter from coping a massive tax bill from the Australian Taxation Office (ATO). However, now the ATO are reviewing their system and are planning a new program that may catch a few tax avoiding individuals who use trusts as a cover from large tax bills. Make sure that your business accounting in Sydney has not fallen into this!
The ATO will largely examine whether or not the trusts are complying with sections 100AA and 100AB of the Income Tax Assessment Act 1936. The ATO wants to ensure that individuals are not using tax-exempt entities to shelter the trust's net income. ATO officials has claimed that many trusts may have been operating without complying with the regulations, thus have been manipulating with the amount of tax they are ought to pay.
If you are unsure whether or not you have been complying with the regulations, make sure to contact m.a.s accountants, the small business accountants in Sydney. Working over 50 years in small business accounting in Sydney, we are sure we can help you.