Suite 2, 227- 229 The Entrance
Road, The Entrance
NSW, Australia 2261
P. (02) 4332 2799 F. (02) 4332 1033
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What's Happening at DSR in December? In this issue:  The business realities of managing ChristmasTax Efficient gift giving Dear Santa... Reminder to Lodge 2011 Recommendations Important Dates About DSR |
| Seasons Greetings from Davis Stewart Rowland Welcome to What's Happening at DSR in December.
All of us at Davis Stewart Rowland would like to take the opportunity to wish you and your family a very safe and happy christmas. |
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| The business realities of managing Christmas The Christmas season affects different businesses in different ways and can have a significant impact on you. For some, it is boom times but for others, a period of significant dislocation. Because of these differences, there is not a one size fits all answer to the best way to prepare and manage the season. You need to look at your business model and how the season affects your customers and suppliers. Armed with this information, what you need to be doing should be reasonably predictable. Any period where operating conditions change means that there can be an impact on your profitability and cash flow. You need to look at both of these areas. Read on... |
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Tax efficient gift giving...made easy |
| Dear Santa... Thank you for the opportunity to provide advice on your Australian tax position. We are concerned by a number of areas of your operation that will no doubt come under scrutiny by the ATO. We note these below: GST Most goods imported into Australia with a value above $1,000 are subject to GST. With approximately 4,329,000 children in Australia on your list, averaging $40 per gift (depending on whether they have been naughty or nice), we estimate that you will be liable for GST in excess of $17,317,192. We need to discuss tax structuring urgently. We are also concerned that you also may face other commercial issues from Australian retailers who will perceive your ‘gift’ giving as a hostile attempt to gain market share (please Google recent comments by Gerry Harvey and GST). Santa’s little helpers Superannuation guarantee A review should be completed of the employment status of any ‘Santa’s little helpers’ based in Australia to determine if they are contractors or employees. If the helpers are deemed to be employees, you may be liable for the 9% superannuation guarantee (for this year and all other years). It may be hard to argue that they are truly independent given the level of corporate branding involved. If the helpers are indeed ‘volunteers’ we will need to consult with an employment lawyer regarding potential slave labour issues and discrimination of a minority group. Living away from home allowance If any of the little helpers currently based in Australia are receiving living away from home allowances (LAFHA), we will need to review and restructure these arrangements early in the New Year. The Government has recently announced a series of significant changes to the LAFHA rules that will require all employers currently making use of these concessions to review their arrangements. Cookies, milk and other non-cash benefits There is the potential for the ‘gifts’ you receive from children at Christmas to be taxed as non-cash business benefits. That is, the cookies, milk, scotch and other benefits you receive may be considered income by the tax office and tax applied to the value of those benefits. Depreciating your reindeer In the event that you are liable to pay tax under Australian law, there might be an opportunity to depreciate the cost of your reindeer over their effective lives. There are currently no provisions within Australian tax law to allow the Commissioner the discretion to ignore your tax liabilities as a goodwill gesture. Please contact us urgently regarding these issues. Thank you. |
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| Reminder to Lodge Don't forget to lodge your 2011 income tax return. With the christmas period fast approaching now is a good time to get your tax records together for the preparation of your 2011 tax work. If you submit your tax work prior to our office closing on Wednesday 21st December 2011, we can plan to have your work completed early 2012. For those of you anticipating a tax refund it will undoubtedly help with those post christmas bills! Give us a call today for an appointment, post in, drop off or email your work to us. |
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Recommendations |
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Important Dates 21 December - Monthly Instalment Activity Statement 1 -30 November |
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About Davis Stewart Rowland Davis Stewart Rowland is a three partner firm located at The Entrance on the NSW Central Coast. With over 50 years experience we have an in-depth knowledge of what the business owner and investor needs to embark and stay on the path of growth and wealth creation. We have a unique appreciation of the issues business owners and investors face, which makes us an integral part of our client's advisory team. Our comprehensive approach includes:
Whatever your needs we can help find a solution. |
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