Every company in Australia is considered an artificial entity that is incurred by a set of tax liabilities. You can lodge your company tax return through a registered tax agent. But you should contact them before the last date of tax return filing. Apart from an agent, you can also accomplish the job online with myTax if your business is registered as a sole trader.
In case your business is a partnership, company or trust, you can file the tax return using standard business reporting (SBR) software. However, if you are not so expert in software basics, you can happily do it using paper. You will need to have your accounts reconciled and financial documents like business activity statement (BAS) and annual GST return, if possible.
As an owner of a small business, you are bound to report the financial condition of your company and also the business activities of the financial year to the Australian Taxation Office (ATO). A company tax return is the financial information of your company that you have to submit every year. In short, it is actually the income tax return of a company. The company’s annual income is included in the return statement.
Apart from the income, different expenses that a company has to bear are also mentioned in the tax return file. Any business company stands upon profits it makes from the trading and transactions and this profit is also tax-deductible. The amount of tax that you have to pay against your profits is also declared in the tax return. Another important statement included in the tax return is the ‘assets and liabilities.
Assets are those entities that are owned by the business like equipment, buildings or vehicles while liabilities include business debts or loans. Other points included in the tax return are tax offsets and credits. To summarise, your company’s tax return statement will provide a detailed report on the company’s taxable income as well as the company’s tax payable. One thing you must remember is that your personal income will be considered separate from your company income.
Usually, you have to file your company tax return on 31st October every year. Under special circumstances, you may get an extended deadline till 15th May of the following year. There are certain eligibilities for filing company tax return which are as follows:
These strict rules and regulations are only applicable if your business is registered as a private limited company. You should consult with an expert and highly experienced tax consultant so that you can get the maximum return of your payable tax.
Filing a tax return within the scheduled time and getting it at the usual time helps a business to run smoothly. Usually, the company tax return deadline is 28th February each year. The return process includes both lodgement of the tax return and the payment of tax as well. You can understand it clearly if it’s explained in detail. For the financial year of 2021, the tax return period is covered from 1st July 2020 to 30th June 2021 and the exact date for company tax return lodgement is 31st October 2021.
Your tax agent will always want to get your tax return lodged within time but it is your responsibility to keep your account books updated and submitted long before the last dates.
You can easily download a PDF document of Company Tax Return 2021 from the suitable website and read the instructions that you have to follow while lodging the income tax return. These instructions include:
For tax return and small business tax services, you should consult with a tax consultant to get proper advice on how to follow each step.
Filing income tax return and paying them within the proper time will help your business to run successfully. So, as a business owner, it is really important for you to lodge a company tax return within the due date. However, it is always recommended to lodge the return well before the deadline to avoid unexpected surprises. For that, you have to keep your logbooks updated. There are certain steps to successfully complete a company tax return which are as follows:
Another point you must keep in mind is that you must follow the preparation guide to maintain accounts so that the software can easily handle the automation.
You have to follow all the instructions pertaining to different fields such as Assets, Liabilities, Equity, Revenue and Expenses. You have to include the correct information in the proper way as directed in the preparation guide. Put it simply, you must maintain the quality of your accounts which will affect the outcome of quality and accuracy of income tax return even if software like LodgeiT can import accounts from any accounting software.
To get more information, you can consult any tax expert or contact the support desk of the tax lodging software. Getting in touch with us at Palladium Financial Group can be beneficial for you to a great extent, as we will guide you through the entire process of company tax returns.
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