When using your business money and assets for private purposes.
Businesses are required to keep accurate records of such transactions, if they are using business money and assets for private purposes.
There could also be tax consequences too.
You may have to report these transactions in the company or trust’s tax returns and also your individual tax return. It is always important to keep accurate records of transactions.
You may have to:
- Report these transactions in the company or trust’s tax returns and your individual tax return
- Account for these amounts in a certain way to minimise unexpected tax consequences
Now the next question is, who needs to know? All must be recorded and reported for tax purposes.
If you are an individual who
1. Is a director/shareholder that operates a small business (your business)
- Is a trustee or beneficiary of a trust, that operates a small business (your business)
- Is a director of a corporate trustee for a trust that operates a small business (your business)
- Is or has been an associate of the shareholder (individual or entity). An associate can include a relative, partner, spouse, or another entity controlled by a shareholder
For more information in relation to using your business money and assets for private purposes, click on this link below.
Using your business money and assets for private purposes | Australian Taxation Office (ato.gov.au)
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