Search This Blog

Tuesday, 17 November 2015

Determining if a business is a small business entity

  1. An individual, partnership, company or trust is a small business if it:
      • Operates a business for all or part of the income year; and
      • Has less than $2 million aggregated turnover.
  2. The aggregated turnover includes the annual business turnover, excluding passive income, of:
      • The taxpayer;
      • The taxpayer’s connected entities; and
      • The taxpayer’s affiliates.
  3. An entity is connected with the taxpayer if either:
      • The taxpayer controls or is controlled by that entity; or
      • Both the taxpayer and that entity are controlled by the same third party.
  4. An affiliate is an entity who acts or could reasonably be expected to act in accordance with the taxpayer’s directions or in concert with the taxpayer in relation to their business affairs.
  5. The $2 million aggregated turnover test is met if:
      • The taxpayers's aggregated turnover was less than $2 million in the previous income year; or
      • The taxpayers's aggregated turnover in one of the two previous income years was less than $2 million, and their current year aggregated turnover is likely to be less than $2 million as reasonably estimated at the first day of the current income year; or
      • The taxpayers's actual aggregated turnover was less than $2 million as worked out at the end of the current income year.
  6. For more information, click here.

3 comments:

  1. I have been your silent reader for long.. Now I think you have to know how much your articles have inspired me to do better. This is very insightful and informative. Thank you for sharing. I would love to see more updates from you.

    Small Business Tax

    ReplyDelete

  2. Is it accurate to say that you are baffled as your record got debilitated on impermanent premise? Handicapped records are inconvenience whether it is for transitory or changeless premise. In the event that you don't have the foggiest idea about the best possible procedure to settle your mistake, you can take assistance from the all around experienced experts who have authority in this space and can recoup every one of the issues in limited ability to focus. You need to dial Gdax Support Phone Number 1-800-665-6722 and connect with the specialists who will give permissible arrangements and systems identified with your mistake.

    ReplyDelete