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JamesMillar, post: 269330, member: 5318 wrote:

1. Who added the PAYG withholding role to the ABN (you or agent) and exactly what date did they / you contact the ATO to do it (I don’t mean the specified start date of 1 January 2020 because the ATO call centre would have been closed on that day and the ATO portal is shut during that time as well). I am guessing you added the role sometime after 1 January and backdated. By any chance was this all done after 12 March 2020?

Interestingly, none of us added the role. It was automatically added once either the payroll (through STP) was done on 31 March (pay day) or the employee (me) went onto mygov to register employment details. I can’t work out which action resulted in the role being added.

2. Did the company lodge a 2019 income tax return showing any amount of business income and when was that return lodged?

We haven’t lodged the 2018/19 return just yet – it’s due to be done shortly. This is a legitimate (and my only) business with business income reported each year since 2016.

3. Did the company lodge a sept 19 or dec 19 bas showing any income? When lodged?

Yes we did and it showed income of $30,000 (expenses $24,000) and directors fees of $3,400 were paid if that’s relevant – the directors fees were not paid via payroll.

4. If you do take this proposed wage will it put the company into loss for 2020FY? How much of a wage are we talking about between 1 January 2020 and 30 June 2020?

The wage is nominal – $22,000/yr paid QRTLY. It won’t put the company into loss – prior to making the payment, there was $10,000+ in the bank account and profit YTD was $7,000.

The answers shape where you sit on the risk curve. Interestingly the cash flow boost measure does not contain an opt out clause and there is no application process. The jobkeeper program does have an application process.

The fact you have no choice in the matter, yet by correctly reporting the start date you open yourself up to scrutiny scares me somewhat. My accountant has been no help for the other poster above you.

I hope I’ve answered your questions with sufficient detail in bold above.

I very much appreciate you taking the time to help James.