TAX PLANNING

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Tax Planning Overview

As it is coming close to the end of the financial year, it is again time to review your tax position and consider your end of year tax planning options.

July 1 is too late to start thinking about last year's tax. That is why at Daniel Nguyen & Associates, we provide tax accounting services for individuals and small business to get your tax strategy in place as early as possible. As part of our comprehensive tax planning process, we make sure that any business or trust structures are as tax-effective as possible. We advise you on maximising the tax benefits of asset purchases or leasing. And stay abreast of changes in tax legislation that might impact your tax strategy in the future.

Business Entities

For businesses operating on the accrual basis, it is necessary to clearly identify your year end cut off dates and criteria for the recognition of income, to ensure income is included in the correct period. Income should be included when it is constructively received by the taxpayer, or in other words, when you have done everything required of you to earn the income and you have an indisputable right to the money.

Small business entities (annual turnover of less than $2 million) can access prepayment concessions that are not available to larger businesses. Therefore, if you have the cash available, you may want to consider prepaying expenses such as rent, accounting fees, interest expense, bonuses and subscriptions. It is important to note that pre-paid expenses can be paid in advance for no longer than 12 months in order to be eligible for the prepayment concession.