December 2009

Seasons Greetings & Happy New Year from Bell & Bell F.G.

Barry, Evan, Brian & Daniel wish you and your family a happy and safe Holiday Period and a prosperous New Year.

We look forward to working with you in 2010 and making it a year to be remembered (for all the right reasons).

As per usual, in lieu of sending Christmas cards we donate funds to

‘VERY SPECIAL KIDS’

Our Office closing time for Christmas & New Year period:

Closed from: Wednesday 23rd December 2009 Midday

Re-open on: Wednesday 20th January 2010 9.00am

(2010 Do you believe it?)

We look at Investment Allowance, Xmas Parties & FBT, Unreported Overseas Income, and Bank Loans Warning.

For assistance with any of the information contained in this newsletter, talk to us today.

CONTENTS

Investment Allowance
Act now UNTIL 31 December 2009 to buy new equipment or depreciable assets over $1,000.00 and claim a 50% tax deduction.

Xmas Parties & Fringe Benefits Tax
The General Rule of Thumb: The year end Xmas party –
if the cost per employee is less than $300 there will be NO FBT, BUT also no tax deduction for the employer.

Unreported overseas income
The ATO is offering taxpayers to voluntarily disclose any previously unreported offshore income to reduce penalties.

Warning: Bank Loans & Outstanding Tax Amounts
Banks and lenders now ask clients to provide the Integrated Client Accounts from the Tax Office, which disclose the amount you & your entities owe to the ATO.

INVESTMENT ALLOWANCES – ACT NOW UNTIL DEC 31 2009
Small businesses with turnover of less than $2million have until Dec 31, 2009 to buy new equipment or depreciable assets over $1000.00 & claim a 50% tax deduction.

Businesses with T.O. greater than $2 mil can claim 10 % deduction on depreciable new assets.

The assets must be used more than 50% for business purposes.

Contracts, agreements must be signed prior to 31 December 2009 and installed for use by December 2010 to be eligible. You cannot lease the asset, as you must own it.

XMAS PARTIES & FRINGE BENEFITS TAX
The General Rule of Thumb: The year end Xmas party –

if the cost per employee is less than $300 there will be NO FBT, BUT also no tax deduction for the employer.

Non-entertainment gifts to employees, clients or suppliers etc, such as hampers, wine or vouchers, costing less than $300, will have no FBT BUT are tax deductible.

Tickets to movies, sports events or airlines are considered entertainment & thus non deductible & incur no FBT for employees if cost is less than $300.

UNREPORTED OVERSEAS INCOME
The Tax Office is offering taxpayers to voluntarily disclose any previously unreported offshore income (e.g. foreign bank interest) to reduce penalties.

This disclosure must be made prior to 30 June 2010.

WARNING: BANK LOANS & OUTSTANDING TAX AMOUNTS
Banks and lenders now ask clients to provide the Integrated Client Accounts from the Tax Office, which disclose the amount you and your entities owe to the ATO.

Even though you may have an arranged a payment plan with the ATO, the outstanding

amounts owed may reduce the chances of a loan approval due to the existence of an outstanding debt.

Quote of the month

“We wish you all good health, wealth and happiness!”

The Staff