Redraw Facilities, Offset Accounts And Tax!
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  Running Time: 7:49 Date: 01/05/2013 Make sure you know how your business loans are structured - the tax consequences could be significant. On the face of it, bank redraw facilities and offset accounts can appear to provide similar arrangements for the payment of interest, but - warns Michael Jones of Cummings Flavel McCormack - there can be differences when it comes to tax treatment, dependent on whether a loan has been set up for purely business purposes or for private ones, like the purchase of a house. In a recent Federal Court case, that situation led to the Court upholding a Tax Office refusal to approve an application for small business CGT concessions. Michael says it's important to structure your bank loans so that interest payments are kept as low as possible, and tax concessions not forfeited by lack of care. Topics: Accounting & Tax, Financial Management, Management |
 Michael Jones, Cummings Flavel McCormack |