The ATO has advised that in the coming months it will be having discussions, either through a visit or via a phone call, with selected tax practitioners. This engagement is to highlight topical income tax issues for small businesses in the current economic environment and provide information that may assist agents in discussions with their clients.
The purpose of these discussions will be to help agents and their clients comply with tax obligations by providing the information they need about:
- Eligibility to utilise or carry forward tax losses:
- the 'continuity of ownership' test, and
- the 'same business' test.
- Division 7A
- private loan arrangements with shareholders or shareholders' associates.
- Selling or closing a business.
The ATO says that "these discussions will help to reinforce key messages and issues when you prepare your clients' next income tax return".
For a copy of the advice, go here