Here are some strategies small businesses can use to reduce their tax burden:
1. Reduce bad debts.
Considering bad debts, you should report income as taxable income and stop trying to repay all debts by June 30. This should be deducted from your receivable accounts. If you do not maintain accounts receivable, the manager’s protocol assures that writing off would be a good idea.
2. Stock trading
Write down damaged or obsolete inventory. Use inventory (unless you use the simple rules of stock trading) and keep in mind that the stock price may be less than its replacement cost or net receivable value. You can use different methods. For different products
3. Check your property registry and get rid of the old install.
Determine if the old plant and equipment are on the depreciation table. Instead, they charge a slightly lower price each year. If the plant is obsolete, ask them to work and write by June 30. Small businesses can accumulate assets and claim a deduction from each pool. This means you only need to do one calculation for each group. Not for everyone.
4. Repair of consumables (stationery, etc.), exchange of gifts or donations
To claim a deduction in the fiscal year 2022 consider paying for necessary repairs. Replenish consumer goods by June 30. Change gifts or donations.
5. Pay employee support from June to the quarter.
If you want a tax deduction for the current year, your next quarterly security payment was due on July 28, 2014. However, some employers prefer to pay first rather than wait 12 months.
6. Senior Pension
Don’t forget yourself. Reducing pension taxes can be the best way to keep your wealth safe. Receive personal donations or corporate donations by June 30 before deducting funds.
7. Capital gains and losses
Be aware of capital losses and neutralize the tax effect of capital gains you receive during the year. This transaction must be genuine for tax purposes. By doing this you can donate your unrealistic lost assets to the pension fund.
8. Compensation and remuneration of members of the Board of Directors
Claim your rights by June 30 as long as the company is committed to them. You are still eligible for a discount if you do not pay. Again, the director’s minutes are a good idea. Directors and employees must declare this income only for the year it was received. However, a formal notification of eligibility must be received by June 30.
9. Administrative fees
If an administrative fee is charged between interested parties, please make sure that if there is an administrative fee, the fee should be increased by June 30. Make sure it is commercially reasonable and contains documents to support the transaction. Suppose there is a transaction with an international participant. In that case, the transfer price rules must be observed and the expectations of the ATO documents will be very high, and this is an area of growing interest.
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