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Top Tax Tips – 20 Sept 2017

What is the difference between GIC and SIC?

The ATO charges interest on unpaid tax debts and shortfall amounts. A shortfall amount is the difference between the amount of tax originally assessed and the increased amount of tax assessed resulting from the issue of an amended assessment by the ATO.

  • The lower shortfall interest charge (SIC) rate will be charged on any increased tax debt for the period leading up to amendment of an assessment;
  • In contrast, the higher general interest charge (GIC) rate will be charged on any tax debt that remains unpaid after the assessment was amended.

The rates at which GIC and SIC are imposed differ from quarter to quarter as set out in the table below:

GIC will therefore apply to the original assessments and to any tax shortfalls (as evidenced by amended assessments) and associated SIC from their due date if they are not paid by that date.

Both the GIC and SIC accrues daily and is deductible for tax purposes in the year the taxpayer receives a notice of amended assessment.

Please speak to us if you have tax debt outstanding as we may be able to negotiate a remission of GIC or SIC on your behalf.

Can your business qualify for tax concessions?

Small businesses may be able to qualify for a variety of concessions:

If the turnover of your business is below any of the benchmarks mentioned above, please come and speak to us so that we can determine help you claim these concessions you may be entitled to.

Are your Australian Business Number (ABN) details still current?

With tax scams and various Phoenix activities doing the rounds, taxpayers are reminded to update their ABN details in the Australian Business Register (ABR) whenever their circumstances or details change.

We can assist you to:

  • Cancel ABNs of partnerships and trusts no longer in operation;
  • Cancel ABNs of old business structures before applying for a new ABN for a new business structure; and
  • Update the authorised contact details for the ABN records.

By 31 October 2018 businesses will also need to register any existing or old trading names as a business name with ASIC in order to continue operating with that name.

How can Nexia Edwards Marshall NT help you?

For any questions or to discuss any of the above in relation to your personal situation, please contact Sarah McEachern or your Nexia Edwards Marshall NT Advisor.

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall NT. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall NT Advisor.

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