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A WARM WELCOME TO PERRIAM & PARTNERS

It's Monday 11 February, we are all sitting at our desks ready to "attack" the week.

"With our passion and purpose you will profit." 

As the card above suggests ... we love what we do!

BIGGER BEANS & BETTER RESULTS AWAIT

Everything we do is targeted at making your accounting easier by condensing bundles of information into simple strategies to get you ahead. 

But getting ahead and reaching your financial ambitions can't be achieved by just doing your end accounts and tax returns, touching base with you frequently or getting together regularly will. 

We will surprise you with what we know and what advice and ideas we can offer. 

AML/CFT Act Information

Have a listen to our team song ...

 

 

 

To all our valued clients and to those whom we have a professional association with.

Stuff are going to be releasing an article on our latest February Newsletter where we have received some negative publicity over some of the content in the Newsletter.  We are not aware at this stage that there are any current clients but that the Newsletter was on our website.

Out of respect for those who took offence we have emailed them personally to apologise and have taken down from our Website the Newsletter.

We have also taken the opportunity to send the following response to the reporter who has written the article.

I have run an accountancy practice for over 20 years

The majority of our staff and most senior staff are female.  We are an equal opportunity employer.

I regularly communicate with clients via newsletter, which contains advice, observations and comments. It often celebrates achievements of clients and or staff and is delivered in a practical and at times humorous way. I do invite you to review all my past newsletters. My team contribute and are part of the creation of the newsletter and always approve it.

There have been no issues with the newsletters and no client has raised an issue over the years. It is very well received.  We send out over 800 hard copies quarterly.

I understand 4 non-clients have obtained a copy of one newsletter and have objected.  They sent messages to us via our Facebook page to express their concern.  We apologised to each of them personally and that we regretted any offence that was caused and offered to remove the publication from our website which we immediately did.

Due to one of the complainants having linked our newsletter to her complaint the only way to fully remove the newsletter and honour our promise was to pull down our Facebook page which we also did.

No offence was intended by any of our newsletters content.  If any was taken then I do unreservedly apologise.

I appreciate that despite my intention and the context, the content could be read differently and on reflection consider it would have best not been phrased the way it was.

If any content in the Newsletter offended any of you, our clients, or professional associates then please accept my sincere apology.

We will be sure in the next Newsletter that we stick to our "knitting".

A good lesson learned.

 

QUESTION OF THE WEEK... 11 FEBRUARY 2019

GST implications of having an Airbnb rental

QUESTION:

Company A generates Airbnb income from a residential property (which was previously rented out to long-term residential tenants). Company A will soon be generating income above the $60,000 GST registration threshold and will need to register for GST.

  1. Can Company A claim input tax for the purchase value of the property or would an input be claimed for the market value at the time the property became an Airbnb?

ANSWER:

A person is entitled to make an input claim when they introduce an asset to a taxable activity that was acquired before they commenced the taxable activity.

This claim is done through the GST apportionment process with the first adjustment period starting on the date the asset was acquired and ending on the balance date following the asset being introduced to the taxable activity. As the property has been owned during a period when Company A was not registered, only a portion of the input tax will be claimed at the end of the first adjustment period (because the use for making taxable supplies since the property was acquired will be less than 100%). If Company A uses the property for Airbnb 100% of the time, Company A will claim the balance of the input tax at the end of the second adjustment period. Otherwise on-going adjustments will be required.

The apportionment is based on the input tax the person could have claimed at the time of purchase if the asset had been acquired for the sole purpose of making taxable supplies.

If the asset is sold, GST will need to be accounted for on the sale. If Company A has not claimed all the input tax relating to the property's purchase at the time of sale, a wash up calculation is undertaken to determine if further input tax can be claimed.


AML/CFT Act

 

 

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