Why Do We Have To Pay Taxes?

Every business owner and business itself must pay taxes according to the laws of the local government, irrespective of the fact that the business had report a loss or even if the business does not meet the inception of taxes. When you or your business is lodging the necessary taxes to the local authorities, there is something you should consider, depending on the structure of your business. Let’s see what they are.

If your business is a sole-proprietorship

If your business is a sole-proprietorship you must pay an individual tax-return, which includes the income of your business. You can pay the individual tax-return through a separate schedule to your business. Hence, you will not have to pay taxes for the business separately then. If things are complicated you can seek professional help such as bookkeeping Chermside help.

If your business is a partnering business

If your business is a partnering business, you must lodge taxes through the unique taxation number, which is also known as the individual-taxation-number. Each and every partner connected to the business must pay the share of income earned through the partnership, in their individual tax-return. Annually with the local authorities the partnership must lodge an individual return under the TFN, which is known as the tax file number of the business.

What if u has a trust-fund?!?!

A trust must contain an individual tax file number. Even a trust must pay the due taxes. A trust must pay trust income tax return.

How to lodge returns?

The way to lodge returns depends on the structure of your business. Not only that, it depends on how complex the taxes are. Unlike good old days where you must wait for hours in the queue, you can lodge your business tax return online. If you are willing to seek the assistance of a tax-agent, first you must check if they are registered under the TPB, which is the tax practitioner’s board. You can visit them or call them to verify if the tax agent you choose is registered under them. Entities or sole proprietors have the ability to use the online systems available to pay their due taxes.

When is it due though?

Tax-returns for Sole proprietors, partnerships and individuals are payable in October annually, but you don’t have to do that if you are willing to lodge through a tax-agent that is registered. Moreover, if you have a company your tax returns will be due on the month of February annually. But lodging a BAS, also known as the business-activity-statement is your requirement the due dates differ. Dues can be paid monthly or even quarterly. Now you are aware about every single aspect of taxes!