Avoiding tax traps 4:32pm 10.04.08

To ensure your business doesn’t get caught out by tax, the Taxation Office has supplied the following tips about record keeping:

1. Record all information from business transactions in a cash book, either electronically or manually.

2. Record payment summaries for salary, employment termination payments, and fringe benefits.

3. Store all documents in a safe place for a period of five years, and

4. Withhold tax according to the pay as you go (PAYG) withholding rules, recording all GST obligations and paying superannuation contributions to a superannuation fund on behalf of eligible employees.

The Tax Office also has tools to ease the process, including; electronic record keeping, a record keeping evaluation tool, online tax obligation calculators, and a checklist covering the basics small businesses need to go over.

For further information, visit www.ato.gov.au/business