Each month, members of The Tax Institute can access a complimentary, recently-published technical paper that provides up-to-date information on a relevant issue for tax professionals.
April’s paper was I think (I’m a small business), therefore I am. Know your thresholds! by Ross Prosper CTA, Director at Bentleys.
Prosper suggests that business owners need to have a clear understanding of whether or not they can define their enterprise as a ‘small business’ for tax purposes.
Qualifying as a small business can make a significant difference to their tax affairs. It allows various tax rollovers, concessions and exemptions that would otherwise not apply. However, the definition of a small business is complex.
Ultimately, it’s important to review the rules in full, and to have a complete understanding of the business owner’s entire group structure and operations in order to ensure the business meets the definition of a small business.
The purpose of the paper is to ensure that the business owner understands the business entity tests, grouping rules and required thresholds to be a Small Business Entity. The paper further explores the grouping rules and required thresholds to meet the Maximum Net Asset Value Test for access to the small business CGT concessions.
If you’re a member of The Tax Institute, you can download the paper here without charge. If you’re not an Institute member, a fee applies.