In the last 12 months a number of significant tax changes have been announced or implemented by the Government. However, there is some uncertainty and confusion around the status of the new rules and how to apply the changes in practice.
While exposure draft legislation released by Treasury indicated that some retrospective changes would be made to the company tax rate rules from the 2017 income year onwards, the Government appears to have changed its approach and has basically decided to leave the current rules in place for the 2017 year.
As noted above, a company can only be classified as a SBE in the 2017 income year and qualify for the lower corporate tax rate if it actually carried on a business in its own right in the 2017 income year. Whether a company carries on a business in its own right is ultimately a question of fact.
…To find out more about the general indicators of whether an entity is carrying on a business or a taxpayer carries on a business under general principles, come and talk to us Tax Ideas Accountants & Advisers…https://taxideas.com.au/booking/
Tel: (02) 8318 1545