Home – New Forums Find the help you need ACN: Do I need a ABN and TFN? Tax Help

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  • #995076
    kongchamp
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    Hi guys,

    I need your help. So first off, originally, I started a partnership and registered for an ABN and a TFN. Under them are 2 registered businesses. Recently, one of the business formally exited the partnership to form a company structure whereby an ACN was registered. As you may know, there is still a business running under the partnership so my questions are: Do I need to technically remove the business (now company) from the partnership? (and is it done through the ATO or ASIC?) Secondly, do I need to register a new ABN and TFN for the company?

    Also tax help?
    So as mentioned, we are currently running a business and a company.

    In terms of the business (retail) in 2015/16, we haven’t sold anything as we are still under the product development stage so we only have an expense account. I was just wondering if I have to file a tax return for the business? Is there are any other obligations?

    In terms of the company (mobile app) in 2015/16, we are developing the application in house so there hasn’t been any income or expenses. Do I still need to file for a tax return? Are there any other obligations?

    I can not thank you guys enough for helping.

    #1199869
    Anonymous
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    Not a tax agent but you’ll want to file a tax return for any allowable expenses so they can be carried forward to offset future profit. Depending on the expenses and if you meet certain criteria you may even be able to claim them against your personal income.

    You need to get advice from a tax agent.

    #1199870
    kongchamp
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    Are there any consequences to not filing a tax return?? for business or company?

    #1199871
    Paul – FS Concierge
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    kongchamp, post: 236661, member: 82668 wrote:
    Are there any consequences to not filing a tax return?? for business or company?
    The ATO will ask for all of the money you owe on the spot, plus interest and may also impose a penalty as well.
    #1199872
    bb1
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    Paul – FS Concierge, post: 236662, member: 78928 wrote:
    The ATO will ask for all of the money you owe on the spot, .

    I think this statement is a little drastic, if you contact the ATO to advise them of the situation, and provide timelines, etc, they will come to the party. They even allow you to make payment plans to pay off any outstanding debts.

    The ATO is not out to get you, and they don’t collect money on the spot, they will work with you.

    #1199873
    kongchamp
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    bb1, post: 236666, member: 53375 wrote:
    I think this statement is a little drastic, if you contact the ATO to advise them of the situation, and provide timelines, etc, they will come to the party. They even allow you to make payment plans to pay off any outstanding debts.

    The ATO is not out to get you, and they don’t collect money on the spot, they will work with you.

    But, why will I owe the ATO any money when there was no income in either business or company?

    #1199874
    bb1
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    kongchamp, post: 236668, member: 82668 wrote:
    But, why will I owe the ATO any money when there was no income in either business or company?
    I didn’t say you did, I was responding to [USER=78928]@Paul – FS Concierge[/USER] statement which was a little over the top.
    #1199875
    Paul – FS Concierge
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    Silly me – I misread your original post. I should have left the advice to the legal and tax experts and offered you simply a very warm welcome to the Forums.

    Hopefully some helpful experts will be along soon with some on-point advice.

    Cheers

    #1199876
    Kylie Holbeck
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    Hi kongchamp,

    I would recommend getting in touch with a good business tax adviser if you don’t already have one, my next recommendation for when the businesses start to trade would be get a good bookkeeper, just to take the pressure off you having to worry about what needs to be lodged with the ATO and when.

    Good luck with your business

    #1199877
    JacquiPryor
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    To this question: Secondly, do I need to register a new ABN and TFN for the company?

    I would suggest yes, if the now separated company intends to trade in its own right (separate to the Partnership).

    The partnership is a legal entity; the company is a separate legal entity – each trading entity should have its own ABN. (e.g. now the company is incorporated, I assume as a Pty Ltd, it is not really ‘linked’ in that sense to the business name it once was under the partnership). If the Pty Ltd is intending to act as a business in Australia it will need its own ABN.

    #1199878
    BAYG
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    You will need to lodge a tax return at some time as it is the duty of a director to do so (refer ASIC website). However, the ATO only really gets narky when you’re holding onto their cash. When it’s losses and amounts refundable they’re potentially making money and a little bit more easy-going.

    That aside, the company will require a new ABN. Normally that is assigned when you register the company … unless you nominated to transfer the old one… this could cause you other issues.

    The easiest way to check is whether the the ACN and ABN match (except for the first two numbers of the ABN). ABN = XX 111 222 333: ACN = 111 222 333.

    The business name transfer is done through ASIC. Assuming this is a business name you pay for and renew every 2 years or so through ASIC. This might also have been done while registering the company – in particular if your company name matches the business name.

    The partnership details will just get recorded through your personal income tax return for “your share”.

    #1199879
    Easysmb
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    Hi There
    Each legal entity, no matter a parternship or a company, needs its own ABN and TFN.
    One legal entity can have more than one business activities.

    For loss incurred, if you want to carry the loss forward, then you need to lodge a tax return.

    Please find an accountant you trust, as you will need an accountant anyway.

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