Tax & Superannuation: Company Tax - Guides
Company Tax
3. Company Tax Planning
Last updated: 10 Jul 2015
- Company tax planning is a crucial aspect of business and should be done with legal advice that is specific to your business. Tax planning (not tax avoidance) involves questions of managing the tax burden of the company as well as how you are permitted to withdraw profits from the company down the track.
- Company tax law is found in a complex mix of:
- legislation;
- taxation rulings and determinations of the ATO;
- ATO publications;
- Federal and High Court decisions; and
- Administrative Appeals Tribunal decisions.
- The ATO issues ‘decision impact statements’ when important decisions are made by courts or the tribunal. These statements give an indication as to how the ATO may decide in similar situations in the future.
- When setting up your business as a company it is essential you understand:
- what your tax obligations will be; and
- how to manage the requirement to document various aspects of your business for tax purposes.
- For example to be able to claim business expenses as a deduction against the company’s income you need to know what allowable deductions are for your business and how they must be documented.
- For information regarding the lodgement of company tax returns see www.ato.gov.au.
- It is essential to obtain professional advice both when setting up your company as well as in managing your ongoing tax obligations to ensure:
- you have the most effective structure in place from the beginning; and
- that you continue to keep abreast of changes to tax law.
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