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January 2021 Newsletter

January 2021 Newsletter

Volume 151

Choosing a Structure in a Foreign Country depends on the after-tax result in the Australian Investor’s hands. Here’s why! 
When choosing the optimal foreign structure for your expanding business, several factors must be considered but the global tax outcome is always one of the most important.

Understanding the global tax outcome requires an analysis of both the tax that will be payable in the foreign country, and the final tax to the Australian investors. This article will provide you with the brief and basic summary of how Australian tax rules applies.

Potential tax issues in Australia and overseas need to be contemplated so if you have plans to expand overseas, please contact us to have this conversation in detail.  

Service of the Month – International Tax 
In 2010, S&W joined an international network of accountants called Krestons. The Krestons network reaches over 110 countries and has almost 200 member firms. S&W has the ability to connect our clients with competent and reliable professionals around the globe to ensure the best advice is available to them based on their international needs.

We have been able to help our clients from different industries with their specific requirements by connecting them with member firms and associates that we know personally through the network. Here is the link to view recent examples of client’s needs that we were able to satisfy.

Cross border structures are complex, so if you’re considering setting up or expanding into a foreign market, please contact us to assist you in managing this process. Our membership with Kreston’s allows you to have the right advice in both countries!

Safe Harbour protection has lapsed! What are your options now?
The Safe Harbour protection was a temporary legislation that protected directors by relieving them of liability for insolvent trading during the “Covid-19 Safe Harbour” period from 25 March 2020 to 31 December 2020.

Now is a crucial time to look at your business and confirm it’s future plan. This article will give you a clear understanding of the original legislation and recommendations on the best way moving forward for your business. If you are in doubt about the viability or solvency of your company, contact us to discuss the options available to you and to limit any personal exposure.

Are you treating your long-term construction contracts correctly for tax purposes? 
A long-term construction contract is a contract for work that extends beyond one year of income regardless of whether the contract is actually longer than 12 months long.

The ATO is concerned with the methods which businesses use to bring profits to account over the term of the contract. To avoid businesses deferring income until the end of contract the ATO released Taxation Ruling TR 2018/3 which includes methodologies for calculating profits that are acceptable to the Commissioner. The full article explains the methods that comply with the ATO requirements.

If you have any long-term construction contracts, please contact us to discuss which method is suitable to your business.

New Employees 
We would like to welcome three new acquisitions to our team at S&W.


YeMon Thant joined S&W in December 2020 in a newly created role to look after our audit team’s admin needs, including being a personal assistant for partners Kamal Thakkar and Darren O’Malley. She will also be looking after all the marketing within the firm.


Florencia ‘Flo’ Scarponi joined S&W in December 2020 to take over Kimberly Strathern’s role, as Kimberly will be leaving us at the end of February 2021 to pursue a career within the nursing industry. Flo will be the personal assistant to Quang Tat and Ben Barter.


Markus Goebel joined S&W in January 2021 in a newly created role. Markus will be attending to all the IT requirements within the firm as well as providing the firm with a new service product line which is a review of client’s internal IT systems and recommending any improvement/software infrastructure that can be made to help efficiencies in your business. This service will be available in the next few months.

Quote
“What the new year brings to you will depend a great deal on what you bring to the new year.”
Vern McLellan

Correct as of 29 January 2021

DISCLAIMER
This newsletter has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under Professional Standards legislation

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