There have been a number of recent legislative changes and case law that may possibly impact on your business and the impact of these needs to be considered. These include:

» Change to the non-commercial loss rules (as discussed in an earlier article);
» Impact of the ‘Bamford’ case on Trust resolutions and distributions;
» Impact of draft Tax Ruling on Unpaid Present Entitlements to private companies from related trusts;
» Impact of amendments to the Division 7A on the private use of company assets.

In addition, with the end of the March quarter upon us, now is the opportune time to assess your estimated profitability for the 2010 financial year and look at implementing strategies to reduce your tax burden. This can be achieved by maximizing and accelerating deductions and minimizing and deferring income. Some possible strategies include:

» Payment of concessional superannuation contributions for related parties up to the relevant cap;
» Consider prepayment of expenses;
» Write-off of bad debts;
» Take advantage of immediate or accelerated depreciation;
» Review trading stock for obsolescence;
» Review asset register for obsolescence;
» Defer invoicing until July;
» Pay compulsory superannuation prior to 30th June;
» Confirm staff bonuses prior to year end

If you would like to discuss any of the above or for assistance in preparing some interim figures, please do not hesitate to contact us.