среда, 9 апреля 2014 г.

Liquidation of your business

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The Exit Plan: Winding Up Your Business 

– Part 1

Wednesday, 9th April, 2014, by Channa Perera
In today's Smart Tax Bulletin:
  • Selling or closing your business: The first step
  • 9 things to do when you wind up your business
Dear Reader,

Times are tough! For business and for individuals alike. And some of you might be feeling the ‘pinch’ worse than others.

But my heart goes out to the small business owners. They were the driving force of the economy for years, but financial hardships are getting to them.

So in today’s Smart Tax Bulletin, we will have a good look at tax effective methods of closing down your business.

Continues below…
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It’s now more likely than ever before that the AustralianTaxation Office will audit your business
 
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9 things to do when you wind up your business

Once you have made the final decision to either sell of close down your business, you will need to do the following things:  
  • Cancel your ABN with the ATO and other registrations, such as your business name with the Australian Business Register. Keep in mind that you need to notify the Australian Business Register within 28 days of ceasing business activities.
  • Lodge (business activity statements and instalment notices) or pay any outstanding debts that you owe the ATO.
  • Cease all trading activities.
  • Inform your creditors that you need an extension to pay the any outstanding bills, if relevant.
  • Inform debtors about your situation and try to collect funds for all overdue accounts.
  • Inform employees of the situation – ask your staff to take their leave and other entitlements prior to closing down.
Tip: If you are selling the business, the sale price may be reduced by the value of your employees’ entitlements.
  • Inform your bank – if you have any outstanding loans or any other facilities ask them  for a financial hardship assistance plan.
  • Property, equipment and inventory – try selling any obsolete or slow moving stock and sell any  redundant or obsolete machinery or spare parts, and scrap whatever is no longer required.
Tip: During a sale this will eliminate any disputes about the value of the inventory.
  • Commercial premise leases – contact your estate agent and inform them to how much time you need to vacate the building, if relevant.
Next week’s Smart Tax Bulletin will include tips on the treatment of Capital Gains Tax and GST treatment on a sale of a business.
Until then,
c
Channa Perera
Editor
Smart Tax Bulletin





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