You may think you are in business, but attention to detail is very important – especially when dealing with the Australian Taxation Office (ATO).
Not all issues with the ATO are clear cut, so it is important to consider the following if you operate your own business:
- Is the activity commercially defined?
- Does the taxpayer have purpose and intention?
- Is there a clear intention to make profit?
- Is the activity portable?
- Is there repetition and regularity?
- Is the activity carried on in a similar manner to that of the ordinary trade?
- Is the activity organised and carried on in a businesslike manner and systemised?
- Are records being kept?
- What is the size and scale of activity?
- Is there an up-to-date business plan?
- Are there commercial sales of the product or service?
- Does the taxpayer have the adequate knowledge and skill to run their own business?
At TaxAssist Accountants we welcome people who operate their own business to come and talk to us. We are continually keeping up-to-date with the latest tax strategies and laws available, as well as the latest requirements from the ATO.
Contact your nearest TaxAssist Accountants today for a free, initial consultation.
By Terry Murphy
Last updated May 2017