Tax Services

Tax risk management

The business environment in which we operate means that, regardless of the size of your business, the management of tax risk is a core issue.  Tax risk impacts on every aspect of the business either directly or indirectly.  Transactional and operational decisions along with changes in the market and your business’ financial position can all affect its tax risk profile. Managing task risk involves far more than dealing with Australian Tax Office (ATO) audits, it permeates all phases of the business’ decision making process and can affect its commercial success.

We can help you to proactively identify and mitigate risks before they arise.  Our team can assist you in developing a framework for managing tax risks across all business units and provide you with the tools to minimise these risks. We recognise that tax risk management is not solely about tax minimisation, there are times where it may be commercially beneficial to take a risk.  Our professionals can provide a clear assessment of existing or potential tax exposures in relation to the expected value of a transaction or operational decision. HNJ Accountants tax team has vast experience across all areas of tax and more specialist expertise in enterprise risk. Our tax team understand that each business is different; size, industry, location, operational capability and culture will all affect your business’ tax risk profile. We take the time to really understand our clients’ businesses and the way in which they operate in order to achieve the best possible tax outcome for our clients.

How we can help

  • Tax risk management strategies
  • Prudential tax audits to identify exposure
  • Statistical reviews
  • Industry benchmarking
  • Liasing with the ATO

International tax

Whether you’re Australian business looking to expand overseas or foreign investor setting up a business or subsidiary in Australia, you will be faced with a number of challenges. Management must navigate a complex web of local tax laws including; income tax, indirect taxes and double tax treaties. In addition to these day to day compliance matters, broader tax issues will also arise such as thin capitalisation, transfer pricing and capital gains tax.  The penalties for non-compliance can be substantial. Resolving these issues at the outset can lead to significant savings in the long term, from reduced taxation, avoiding penalties by ensuring compliance with local laws, making you aware of potential costs and eliminating delays in establishing the subsidiary.

Our international tax team possesses both local knowledge and extensive overseas experience. Our tax team is comprised of experienced international tax specialists who understand the requirements of both the ATO and overseas regulatory bodies. Our local knowledge combined with global affiliations allow us to understand and deal with the pressures faced when setting up an overseas subsidiary. We take a commercial approach to identifying and addressing all issues before they arise, putting you in the best position to expand into the Australian market.

How we can help

  • Overseas Investment Strategies
  • Establishing a business overseas
  • Establishing a business In Australia
  • Tax effective business structures
  • Transfer pricing policies
  • Thin Capitalisation Rules
  • Repatriating profits
  • Cross border pricing policies
  • Liasing with the ATO
  • Income tax issues
  • Compliance reporting
  • Customs & indirect taxes
  • Australian Controlled Entity & Overseas Branch Rules

Tax consolidation

The Tax Consolidation Regime has fundamentally altered the tax landscape for corporate groups in Australia. The tax treatment of losses, depreciation deductions, cost bases, franking accounts and inter-company transactions, amongst other areas, have all been impacted upon. You may be assessing whether you should elect to form a consolidated group, or perhaps you have already consolidated for tax purposes, and you are about to enter into a major transaction. Whatever your circumstances, as a corporate group you need to understand the impact of the tax consolidation regime on your ongoing business and its future direction.

Our specialist tax team can provide advice on what the regime means for your organisation in terms of income tax compliance requirements and responsibilities, as well as its interaction with the Australian Accounting Standard Equivalents to International Financial Reporting Standards (AIFRS). We understand that your business is never at a standstill. Whether you plan to restructure, expand or divest, we can provide expert advice on the impact that tax consolidations will have on your commercial plans. Our tax team prides itself on viewing tax issues from a business perspective. We take time to understand your commercial objectives and restraints and focus on producing the best outcome for your particular situation.

We can provide advice on the following issues:

  • To consolidate or stay outside the regime
  • Restructuring
  • The impact of consolidation
  • The use of losses within a group
  • The Allocable Cost Amount process
  • The impact of inter-group transactions
  • The sale or purpose of major assets
  • Tax sharing and funding agreements

Tax audit assistance

Tax audits are carried out to determine if the tax regulations that are relevant to the company’s line of business are complied with. To do this, the tax auditors review the company’s books and administration. They may also inspect business premises, current assets, and machinery and equipment. The auditors’ aim is to resolve any emerging issues during the audit as far as possible. This entails opening and closing meetings, and discussions during the audit. The taxpayer is also always given an opportunity to respond in writing to any issues that may result in further tax consequences (additional payments or tax increases). Entrepreneurs may feel that the tax audit process is difficult and demanding, even if all the paperwork in the company is perfectly maintained. Having your own expert present during the audit can give reassurance: the expert can communicate with the auditors in their language and ensure that erroneous interpretations and false deductions are prevented and will not lead to additional payments.

Please do not hesitate to contact us should you feel that additional resources and expertise would be useful.

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