Miscellaneous 2012

Getting money out of SME companies

Source: Taxation In Australia Journal Article

Published Date: 1 Nov 2012


It is a common expectation that wealth accumulated in an SME company will pass to its proprietors and their families. Because companies are taxed at a lower rate of tax than many individuals, it is legitimate to ensure that money which has been accumulated as a result of a preferential tax rate cannot be enjoyed by the owners or their associates without the requisite make-up tax being paid. There is, however, also a need to ensure that tax law conforms to commercial structures and practices, and is comprehensible to taxpayers.

This article examines in detail the taxation regime that affects the ability of SME proprietors to release money from their companies. The author concludes that the present combination of complex integrity provisions and legislative concepts which are either counter-intuitive or simply incomprehensible to business people means that the costs of compliance for SMEs have increased and will continue to increase.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2012

Share this page