When should you have a shareholder’s agreement in addition to the company’s constitution?

There is no legal requirement for a company to have a shareholder’s agreement, however there can be significant benefits of having one. We discussed shareholder agreements and the common areas that should be considered in our April 2014 newsletter (which can be found here). With the Banking Royal Commission results disclosing some serious weaknesses in Corporate Governance at the “big … Read More

Directors now protected from insolvent trading

Is your company unable to pay its debts? Section 588G of the Corporations Act 2001 imposed a duty on a director to prevent a company from engaging in insolvent trading. If a director allowed their company to continue trading after it became insolvent and allowed their company to incur debts, then they became personally liable for those debts. A consequence … Read More

More tax savings for small business

From 1 January, 2018 certain types of insurance for small business are no longer liable to stamp duty. To qualify as a small business, the entity must: Be carrying on a business, and Have aggregated turnover of less than $2 million The exception will apply to: Commercial vehicle insurance (being motor vehicle insurance for a vehicle used primarily for business … Read More

Share Transfer vs Share Buy Back – what’s the difference?

Where two or more unrelated shareholders trade through a company, there often comes a time where they part ways, presenting a need for one of the shareholders to exit the company. Broadly, this can be achieved either by the departing shareholder selling his shares to the remaining shareholder, or alternatively by the company itself buying back the shares held by … Read More

How to access invaluable financial information about your competitors

The regulatory and compliance requirements enforced by the Australian Securities and Investments Commission (ASIC) for Companies are often seen to be a burden – but they can also prove to be a useful source of data. Aside from providing investors with safeguards in the manner in which directors carry out their duties in the running of a financially sound company, … Read More

Use of social media can open you up to a Tax Audit

Posting images and content online showing your latest holiday or purchase seemed like a good idea at the time! Just remember who might be looking at your social media as well. The ATO has always looked at different ways to data match what taxpayers declare in their tax returns against information available from other sources. In the past they have … Read More

February 2017 Newsletter

ATO TO REPORT BUSINESS TAX DEBTS TO CREDIT REPORTING BUREAUS From 1 July 2017 the ATO will be allowed to disclose tax debt information to Credit Reporting Bureaus. To avoid being impacted by these new measures you should read our full article. SMSF PROPERTIES – WHAT CAN AND CANNOT BE DONE TO THEM? Are you looking at buying a property, … Read More

ATO to Report Business Tax Debts to Credit Reporting Bureaus

From 1 July 2017 the ATO will be allowed to disclose tax debt information to Credit Reporting Bureaus. The new measure will only apply to businesses with an ABN that have a tax debt of more than $10,000 overdue by more than 90 days, where the taxpayer hasn’t effectively engaged with the ATO to manage the debt (eg by entering … Read More

Does your Business need capital injection – Tax incentives for early stage investors

You may have read in the financial press about the tax concessions available for early stage investors which came in on 1 July 2016. Below we give you the basics on how the concessions work to see if they provide an opportunity for you. The Australian Government currently provides various concessions to support innovative companies. These include Research and Development … Read More