• News
  • 3 August 2017
As we commence the new financial year, I would like to firstly, thank you for your continued support of Nexia and we look forward to assisting you in your financial affairs during the next fiscal year. 

With the financial year over, I look back at the myriad changes that have occurred in the tax area especially over the past six months and the complexities that this adds when running a business and
when planning for or being in retirement.

The new Small Business Entity (SBE) concessions in relation to business asset write-off and pooling have certainly been advantageous to many of our clients and a further technical update will be sent out explaining this in more detail.

However, something which appears to be so simple when examining the legislation is, in fact, not.

The same applies to the Superannuation changes. Again, the concept sounds fairly straight forward but when you apply the legislation to specific circumstances, there are other issues which have not been envisaged and consequences which need to be considered and planned to avoid unintended traps.

It is for this reason that I would say these past two months have been very hectic in many of our offices compared to previous years. During the period prior to the end of the financial year, I was often asked “I have a simple question, could you let me know if I can ...............”

A simple question, is no longer a simple question!

My mind is thinking, what was the client’s turnover this year? Was it less than $10 million? What was the client’s turnover last year? Was it less than $10 million. Hold on, we need to consider the turnover threshold for a SBE in relation to capital sale of the business, was it less than $2 million this year? Was it lower than $2 million last year? Was the person a significant person? The list goes on and on. 

I wish the changes were restricted to tax, but they are not. Two significant accounting standard changes are also nearly upon us in relation to the recognition of revenue and accounting for leases.

Again, basically simple concepts but many of our clients are already experiencing unintended consequences.

Our role during these times is not to provide you with a straight forward technical response but to provide you with a solution, where possible. All I ask in exchange is don’t leave these discussions to
the last minute. Good planning is my first answer to “a simple question ...............”.

Only recently, I had a client present a potential Capital Gains Tax issue on 29 June. In our discussions earlier in the year, he had not informed me that he was contemplating a sale of a business. It was only when I spoke with him on the second last day of the financial year, that he mentioned that he was considering taking up an offer he had received. 

Thankfully, we were able to rescue the transaction and whilst not eliminating all the tax ramifications, we did save him a significant tax liability. No planning had nearly cost him tens of thousands of dollars.

One of the underlying philosophies within Nexia is “we want to hear about your plans and actions, so don’t be afraid to pick up the phone and talk to your respective Partner or Nexia contact”. A pre-emptive call may save the next occasion, which starts “Hi Ian, I have a simple question.............”. 

Growth spurt

We are pleased to announce two large additions to Nexia this quarter. The two firms, Zhong Xing Hua in Beijing and Jiangsu Suyajincheng in Nanjing are both ranked in the Top 25 firms in China. As a result of these two quality firms joining Nexia, it will lift our ranking into the Top 10 in China and hopefully, Top 10 in the Asia Pacific. Over the next 12 months, we will share with you some details of our firms within our Asia Pacific Region and what opportunities this may provide for you.

Best wishes for the New (financial) Year.

 

Next Newsletter Winter 2017

Next Newsletter Winter 2017
Loading...
View all news