By Nikita Sergey (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons
Accounting Professionals is a collaborative, innovative and energetic firm in Shellharbour City Centre, located in the Illawarra. Our point of difference is our preparedness to examine our clients’ businesses, understand how they work, identify how they can be improved and to partner with them during the change and implementation process. The overriding focus of our firm is to assist our clients implement sound organisational infrastructure, robust financial management frameworks and ultimately to be more successful.
Most people accept that they need an accountant for taxation and keeping their books up to date. Accounting Professionals is more than just accountants. We believe in becoming an integral part of our clients business and personal strategies.
Our professional and highly trained staff are dedicated to providing specialised services to conquer any challenges in pursuit of financial independence. We help our clients proactively manage assets and liabilities, critically examine the way they do business, focus on key success factors and help effect change within the business to facilitate growth, increase profitability and improve cashflow.
Our firm has the ability & resources to provide ongoing services to businesses and business owners. We have been operating for 15 years and have built a reputation on the basis of a long term commitment to the success of our business clients.
Our goal is to ensure our clients perceive us as their primary business advisors and value us as their business partners and advisory consultants. The resources we use include highly educated and well-trained accountants and business consultants working with clients as part of their management team.
Professional development, training, exemplary standards of service and professional ethics ensure our firm’s expertise remains at the highest level.
Our firm continues to be actively involved in numerous local business & community groups, including: –
Through our experience in conducting various business improvement workshops and training sessions we have access to a vast array of specialist business service providers that are capable of complementing our services, including business law specialists and human resource service providers.
The workshop was very helpful, the spreadsheets are easy to follow. The presenter and the staff who assisted were friendly, helpful and very knowledgeable.
We would like to thank you for your help and your feedback is valuable to us. Your feedback provides us with the knowledge to continue to provide you with services and workshops that will benefit your business.
Bob Fogarty – Flash Rail
November 30, 2016
The ATO has provided further guidance regarding limited recourse borrowing arrangements (LRBAs) and when non-arm’s length income (NALI) rules apply to a related party LRBA.
The Tax Office recently released a Taxation Determination (TD 2016/16) and updated their Practical Compliance Guideline (PCG 2016/5/) to provide further clarification concerning the circumstances where a self-managed super fund with a related party LRBA would attract a higher marginal tax rate of 47 per cent under NALI provisions.
The ATO will continue to use the “safe harbour” terms for LRBAs set out in PCG 2016/15. The “safe habour” terms are designed as a safety net for SMSF trustees to ensure their LRBAs meet the guidelines.
Limited recourse borrowing arrangements (LRBAs) must be sustainable on normal commercial rates and structured in accordance with the ATO’s “safe harbour” guidelines to ensure the NALI provisions (47 per cent tax) do not apply.
Furthermore, the Tax Office will assess whether an arrangement was on arm’s length terms by assessing if the SMSF has derived more ordinary or statutory income under the scheme then it might be expected to derive if the parties had been dealing with each other on an arm’s length basis.
The ATO will assess what the terms of the borrowing arrangement may have been if the parties were dealing with each other at arm’s length (hypothetical borrowing arrangement). It is then necessary to establish whether it is reasonable to conclude that the SMSF could have and would have entered into the hypothetical borrowing arrangement.
If the SMSF could not have or would not have entered into the hypothetical borrowing arrangement, the SMSF will have derived more ordinary or statutory income under the scheme than under the hypothetical borrowing arrangement. In this instance, the ordinary or statutory income derived is NALI.
SMSF trustees have until 31 January 2017 to ensure they meet the “safe harbour” terms set out in the Practical Compliance Guideline (PCG 2016/15).