Taxation and Superannuation Obligation for Businesses - Desklib

Taxation and Superannuation Obligation 1
Taxation and Superannuation Obligation
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Taxation and Superannuation Obligation 2
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Date: 1st February 2018
Location: Smart & ingle offices
A meeting was held with the management of the company to determine various
taxation and superannuation issues that need to address in your company. These issues are
critical for the efficient running of the business as required by the law. Failing to adhere to
these rules and regulation may result in penalties that may cost the company a considerable
fortune. There is, therefore, a need that the management ensures that it complies with the set
rules and regulations.
One of the elements that need to be put into consideration is the Tax File Number
(TFN) as this acts as your reference number in the tax and super systems. The TFN is the
primary identification number of the business and should always be kept secure. Without the
TFN the company will have to pay more taxes and again it will be prevented from applying
for government benefits. After application, it will take the company close to 10 working days
to get a notification and 28 days for the tax file number to be released. The business also
needs to acquire an Australian business number which works to identify the company to the
government and the local community. This number will assist in confirming the business to
others when one is making orders and preparing invoices (ABEL, 2009, p. 30). More so this
particular number is essential in helping to avoid the Pay As You Go Tax (PAYG) on the
different transactions payment. It will take the company close to 24 hours to apply for the
number and close to 28 days for the ATO to review the application and issue a response
(Steen, & Peel, 2015, p. 225). The company also needs to register with the GST since it will
have a turnover of over $70,000 per year. The GST imposes a 10% tax on goods and services
that the company produces. The company will need to register with the GST within 21 days.