Taxation Advisory
Tax Advisory: Simplifying the Complexities of Taxes
Managing tax is crucial for businesses to minimize their costs and maximize benefits. It is not only about being compliant but also taking advantage of tax-effective options. Due to the ever-changing laws, it is important to seek appropriate advice to avoid penalties and losses. Our advisory team can provide more than just lodgement services for tax management like:
- Choosing the right tax management structure
- Implementing legal, tax-efficient strategies
- Providing custom tax advice for high networth individuals
Taxes can be complicated, whether you are an individual or a business owner. Tax laws and regulations change often, and keeping up with them can be a daunting task. That’s where tax advisory services come in to help.
Our Tax advisory division provides advice on tax-related matters to individuals and businesses. JCA-BNH Financial Services can help you navigate the complexities of taxes and ensure compliance with applicable laws and regulations. In the following paragraphs, we will explore tax advisory services in detail, from their benefits to the types of services we offer.
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Benefits of Tax Advisory Services!
Expert Advice
Tax advisors offer expert advice on tax-related matters to clients. They keep up with the latest tax laws and regulations, and help clients stay compliant.
Cost Savings
By hiring a tax advisor, clients can save money in the long run. These services can identify tax deductions and credits that clients may have missed on their own, leading to reduced tax
Increased Efficiency
Tax advisors can help clients improve their tax processes, making them more efficient. This can lead to reduced errors and penalties, as well as freeing up time for clients to focus on other areas of their business.
Peace of Mind
Hiring a tax advisor can provide clients with peace of mind, knowing that their tax affairs are in good hands. This can relieve the stress and anxiety that often comes with taxes.
Types of Tax Advisory Services
Taxation Advisory
Individual tax advisory services cater to the tax needs of individuals. They help individuals file their tax returns, plan for their tax obligations, and take advantage of tax deductions and credits.
Business Advisory
Business tax advisory services are tailored to meet the specific tax requirements of businesses. Business tax advisors ensure compliance with tax laws.
Internal Audit & Risk Management
International tax advisory services provide advice to businesses operating in multiple jurisdictions. They navigate the complexities of tax laws and regulations in different countries, ensuring compliance and identifying tax savings opportunities.
Self-Managed Super Fund
Mergers and acquisitions tax advisory services provide tax advice to clients involved in mergers, acquisitions, and other business transactions. They ensure that these transactions are tax-efficient and comply with applicable tax laws and regulations.
Business/ Installment Activity Statements
A business activity statement (BAS) is a report submitted by businesses in Australia to the Australian Taxation Office (ATO) on a regular basis (usually quarterly) to report and pay their taxes, including goods and services tax (GST), pay as you go (PAYG) withholding, and other taxes.
The BAS also helps businesses to claim back GST credits on purchases they have made for their business.
An installment activity statement (IAS) is similar to a BAS, but it is used to report and pay taxes on income that is not subject to PAYG withholding, such as income from investments, rental properties, or business income that is not subject to PAYG withholding. We assist our clients in preparing Business Activity Statements (BAS) and Installment Activity Statements (IAS).
Income Tax Returns
Income tax returns in Australia are required to be filed by individuals and businesses on an annual basis to report their income and calculate the amount of tax they owe to the Australian Taxation Office (ATO). The process can be complex, and failure to accurately report income or claim deductions can result in penalties and interest charges.
A tax advisor can provide valuable assistance to individuals and businesses by helping them navigate the tax system and ensure compliance with tax laws and regulations.
They can also guide tax planning strategies to minimize tax liabilities and maximize deductions. Tax advisers can also assist in preparing and filing income tax returns, ensuring that all required information is included and calculations are accurate. Additionally, a tax adviser can provide support in the event of an ATO audit or investigation, helping to minimize potential tax liabilities and penalties.
Payroll taxes, Fringe Benefit Tax, Fuel Tax and Stamp duty
In addition to income taxes, there are several other taxes that businesses in Australia are required to pay, including payroll taxes, fringe benefit taxes, fuel taxes, and stamp duty.
Payroll taxes are levied by the states and territories on wages paid to employees, while fringe benefit taxes are levied on non-cash benefits provided to employees. Fuel taxes are charged on the purchase of fuel for vehicles and machinery, and stamp duty is a tax on certain transactions, such as the purchase of property or shares.
A tax advisor can help businesses to navigate these taxes and ensure compliance with the relevant laws and regulations. They can assist with calculating payroll and fringe benefit tax liabilities, identifying eligible exemptions or deductions, and preparing and filing tax returns. For fuel taxes, a tax adviser can provide guidance on fuel tax credits, which can help businesses to reduce their tax liabilities. Additionally, a tax adviser can provide guidance on stamp duty and other transaction taxes, ensuring that businesses understand their obligations and are not caught off guard by unexpected tax liabilities
Litigation support
A tax accountant can provide valuable litigation support to businesses and individuals who are involved in tax-related disputes or litigation. Tax disputes can arise for a variety of reasons, including disputes with tax authorities, challenges to tax assessments or penalties, or disputes with other parties related to tax matters. A tax adviser can assist with preparing evidence, analyzing financial records, and developing legal arguments related to tax issues. They can also provide expert testimony and opinion evidence in court or before tribunals. In addition, a tax adviser can assist with settlement negotiations, helping clients to achieve favorable outcomes and avoid the costs and uncertainties of litigation. By providing in-depth knowledge of tax law and regulations, financial analysis skills, and experience in dispute resolution, a tax adviser can help clients to effectively manage and resolve tax-related disputes.
ATO dispute resolution
A tax accountant can provide assistance to businesses and individuals who are involved in disputes with the Australian Taxation Office (ATO). Disputes with the ATO can arise for a variety of reasons, such as disagreements over tax assessments or penalties, disputes over the interpretation of tax laws, or disagreements over eligibility for tax concessions or exemptions.
A tax advisor can help clients to navigate the dispute resolution process, providing expert advice on tax law and regulations, analyzing financial records, and developing legal arguments to support their case. They can also assist with negotiating settlements with the ATO, helping clients to achieve favorable outcomes while minimizing costs and risks associated with litigation.
In addition, a tax advisor can represent clients in dispute resolution proceedings before the ATO, such as conciliation or mediation, providing expert guidance and support throughout the process.
Tax Consolidation
Tax consolidation is a tax arrangement in Australia that allows a group of companies to be treated as a single entity for tax purposes. Under tax consolidation, the group is able to offset profits and losses across the group, resulting in a single tax liability for the entire group.
The benefits of tax consolidation can include simplification of tax reporting, reduction of compliance costs, and the ability to minimize tax liabilities by offsetting losses against profits within the group. Additionally, tax consolidation can provide greater flexibility in managing the group’s tax affairs, allowing for greater control over the allocation of profits and losses within the group.
A tax accountant can provide assistance to businesses in implementing tax consolidation arrangements, providing advice on eligibility criteria, assisting with the consolidation process, and advising on ongoing compliance requirements. They can also assist with optimizing the tax outcomes of the consolidation, identifying opportunities to minimize tax liabilities and maximize tax benefits.
Thin Capitalization
Thin capitalization is a tax rule that limits the amount of debt that can be used to fund a business’s operations. Under thin capitalization rules, businesses are required to maintain a minimum level of equity compared to the amount of debt they hold.
Businesses can sometimes miss thin capitalization rules, either through lack of understanding of the rules or by failing to properly monitor their debt-to-equity ratios. This can result in the disallowance of interest deductions for tax purposes, leading to higher tax liabilities and reduced profitability.
A tax advisor can assist businesses in understanding and complying with thin capitalization rules, providing guidance on eligibility criteria and identifying opportunities to optimize debt and equity structures. They can also assist with developing and implementing strategies to manage debt and equity ratios, ensuring ongoing compliance with thin capitalization rules. In addition, a tax adviser can help businesses to navigate disputes with tax authorities related to thin capitalization, providing expert guidance and support throughout the process.
Taxation of Financial Arrangements
The taxation of financial arrangements (TOFA) is a complex set of tax rules that applies to certain financial arrangements, such as loans, derivatives, and leases. TOFA rules can be difficult to understand and apply, and businesses can sometimes miss their obligations under these rules, either through lack of understanding or through failure to properly identify and classify financial arrangements.
Failing to comply with TOFA rules can have significant impact on businesses, including higher tax liabilities, penalties, and compliance costs. In addition, incorrect treatment of financial arrangements can also result in disputes with tax authorities, which can be time consuming and costly to resolve.
A tax adviser can assist businesses in understanding and complying with TOFA rules, providing guidance on classification and treatment of financial arrangements, as well as identifying opportunities to optimize tax outcomes under TOFA rules. They can also assist with ongoing compliance requirements, ensuring that businesses are able to effectively manage their tax obligations and minimize tax liabilities related to financial arrangements.
Capital Gains Tax
Capital gains tax (CGT) is a tax on the profits made from the sale or disposal of certain assets, such as real estate, shares, and business assets. CGT can be a complex area of taxation, with a range of exemptions, concessions, and rules governing how it is applied.
Businesses can be impacted by CGT in a number of ways, such as when they sell assets or transfer ownership of their business. Failing to properly manage CGT obligations can result in higher tax liabilities and penalties, as well as disputes with tax authorities.
A tax adviser can assist businesses in managing their CGT obligations, providing guidance on eligible exemptions and concessions, as well as identifying opportunities to minimize CGT liabilities. They can also assist with structuring business transactions to minimize CGT impacts, as well as providing ongoing support and advice on CGT compliance requirements.
Conclusion
Tax advisory services can provide invaluable assistance to individuals and businesses when it comes to taxes. From expert advice to cost savings, these services can improve efficiency, provide peace of mind, and ensure compliance with tax laws and regulations. Whether you need individual, business, international, or mergers and acquisitions tax advisory, we can provide a variety of services available to meet your needs.