Genene attended her local CPA discussion group on 30th March. Following the meeting she met with Sheilana Prosper, CPA and Principal of Grow & Prosper, to further explore the key points raised by the guest speakers, David Clancy & Travis Pereira of the Office of the Inspector General of Taxation.
In December 2020, the Inspector-General of Taxation and Taxation Ombudsman (IGTO) published a report following complaints by new small businesses that were actively trading before economic support measures were announced 12 March 2020, but were ineligible for JobKeeper and/or Cash Flow Boost because:
‒ sales had not been reported in their Business Activity Statement (BAS) for periods ending before 12 March 2020;
‒ the business entity did not have any BAS periods ending before 12 March 2020; or
‒ the business entity was not registered for GST and was therefore assumed to have quarterly BAS periods, none of which end before 12 March 2020
The Types of Businesses impacted were:
|New business entities||A sole trader setting up a new consultancy business|
|New entities established to purchase an existing business||A company that is incorporated to purchase an existing hair salon|
|Existing business with the same underlying ownership that had recently changed their legal structure||A café being run by a sole trader who then incorporates a company to run the café|
If you, or anyone you know, were affected by these interpretations of the legislation by the ATO, please get in touch with your accountant to start the process of raising an objection with the ATO and have your case reviewed.
Grow & Prosper are happy to talk to business owners who may also wish to seek a second opinion on their unique circumstances. Contact the Practice Principal, Sheilana Prosper, on 1800 476 000 or via email firstname.lastname@example.org
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs or another licenced professional relevant to you and the information contained in this insight.