Every company registered in Australia must lodge company tax return every year. If you are a business owner operating your business through a company, you must lodge your personal tax return in addition to tax return for your company.
A company is a separate legal entity that is run by directors and owned by shareholders. A company makes its own profit and is liable to pay its tax debts, just like a natural person.
However, directors managing the company have certain responsibilities and, in some cases, may be personally liable for certain debts of the company under Australian Corporation and Tax Law. As a company director, you must make to make sure the company complies with its Tax Reporting, GST and Secretarial obligations.
Under director penalty regime, directors can be personally liable for company’s unpaid liabilities for PAYG Withholding, Super Guarantee Charge, GST, Luxury Car Tax and Wine Equalisation Tax if they fail to ensure the company pays its tax liabilities.
Do you need an Accountant to prepare Company Tax Return?
Company tax law is very complex and preparation of Company Tax Return can be extremely detail-oriented. While individuals can get away with lodging their own tax return in some cases, DIY company tax return is not an option!
Even a simple inadvertent mistake can be costly. Company Tax Return should always to be prepared by an appropriately qualified professional who has knowledge and experience to deal with company tax matters.