2012 COMPANY CHECKLIST
(Office Use)
Client Name: / Code for timesheetsBudget – Refer pg 2
Prepared by:
Accounting Year:
Date work started: / Date Finished:
Checked by:
A / CLIENT DETAILS:
New Client? – Check with admin to ensure the referral fee paid ($XXX + GST)
Name of Business:
Main Business Activity:
Is the Corporate Structure Diagram complete, accurate and updated with any new entities?
Has the Client changed address since last return lodged? If YES, provide current address details:
Business Address:
Postal Address:
Shareholders / Directors:
Telephone Number (Home):
Telephone Number (Work):
Email Address:
Check related entities details, correct & up to date in Contact Manager
Prior Years’ Matters Considered: See 2011s checklist
This Years’ matters to be reviewed or carried forward to next financial year? 30/06/2013
Profit & Loss Account / Update permanent Client file to record tax planning and client items of permanent significance:
B / INCOME - all items relate to the 2011 / 2012 year
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
If your client is registered for GST, ensure that all income and expenses are GST exclusive, except input taxed supplies and acquisitions. Ensure that Monthly and Quarterly BAS have been lodged. Ensure that ANNUAL BAS is prepared, if applicable, and lodged on lodgement date of ITR.
If your client is NOT registered for GST, ensure that all income and expenses are GST inclusive.
Is the company continuing to be, or does it qualify as a Small Business Entity (aggregated turnover under $2.0 million). Refer to ATO Guidelines. / Link
Is 80% or more of income from one source only? If yes, please see personal services income worksheet and ATO PSI Schedule. / Link
I1 / Trading Income from sales and / or the provision of services – reconcile to BAS where applicable. / Link / I1
I2 / Savings Banks, Building Societies, Investments and Term Deposits Show total interest received as at 30 June 2012 and provide bank statements. / Link / I2
I3 / Gross distribution from partnerships – Gross distribution from all partnerships. / Link / I3
I4 / Gross distribution from trusts – Gross distribution from all types of trusts. / Link / I4
I5 / Rental Properties obtain details of rental income received, such as annual rental statement – CHECK FOR BUILDING DEPRECIATION. / Link / I5
I6 / Dividends Received Franked / Unfranked from Dividend Statements. Ensure imputation credit included in Income & shares held for 45 days. / Link / I6
I7 / FBT Reimbursement Provide workings of employee contributions. / Link / I7
I8 / Forestry managed investment scheme income–to obtain Product/Private ruling details. / Link / I8
I9 / Other Gross income – include:
- Royalties, insurance recoveries, subsidies or non-government allowance;
- Sale of depreciating assets etc.
I10 / Share Trading Statements Obtain details of shares purchased, including date, quantity, costs etc., and shares sold, e.g. sales proceeds, date, and amount of shares sold. Also include brokerage, opening and closing balances from holding statements – SHARE INVESTORS REFER CAPITAL GAINS. – See Item 7 LabelsG & A.
Label Z – CGT event relate to a forestry managed investment scheme interest held other than as an initial participant. Refer to Item 9 for product/private ruling information. / I10
I11 / Capital Gains Provide details on any other capital/Investment assets, e.g. shares, properties acquired since 20 September 1985 and sold in the current 2012 year. If the conditions for small business entity concessions essentials are satisfied, the small business capital gains tax concessions may be available to reduce or exempt capital gains. / Link / I11
C / EXPENSES
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
E1 / INTEREST – Prepare loan reconciliation statement.
Notes:
- was any interest paid to non residents?
- was there an at-call loan?
E2 / Wages Paid – obtain 2012 employer copies of PAYG Statements and PAYG summary statement - prepare wages reconciliation, if necessary, and identify associated employees and report in ITR.
Reconcile with Payroll Tax Records, if applicable. / E2
E3 / Superannuation expenses:
- Check annual SGC contributions;
- Reconcile with wages paid to identify any discrepancy, if any;
- Reconcile to SMSF, where applicable, identify associated employees.
E4 / Payroll Tax – Check if over relevant state threshold, note “wages paid” includes super, allowances and reportable fringe benefits. Check if entity is grouped with other employer entities. Check if wages are paid interstate as liability for interstate payroll tax could be applicable. / E4
E5 / Motor Vehicle - check details of expenses in working papers
* Are any of the expenses subject to FBT? / Link / E5
E6 / Entertainment - is it subject to FBT? - check FBT return
Note: Entertainment expenses are not deductible unless FBT was paid / Link / E6
E7 / Business Travel Expenses
Advise client ATO will require diary and other supporting documents / Link / E7
E8 / Legal Expenses - Provide details to determine deductibility / E8
E9 / Bad Debts - Provide details / E9
E10 / General / Sundry Expenses to be avoided where possible provide summary of main expenses and re allocate accordingly. / E10
E11 / FBT Expense - Reconcile to FBT return / E11
E12 / Depreciation Schedule - a list of all business assets showing date of purchase, description and purchase price. If the asset is under hire purchase or lease, verify the balance with the balance sheet
For Luxury car – note the car depreciation limit
Consider Small Business Entity implications when preparing depreciation schedule
Consider low-value pool depreciation for non Small Business Entity taxpayers / Link / E12
E13 / Insurance - Confirm Claimable Business Expense / E13
E14 / Lease Payments - Confirm business lease and identify any commercial hire purchase to be capitalised
Luxury Motor Vehicles - to be capitalised / E14
E15 / Repairs & Maintenance - briefly include any repairs and maintenance carried out on any business assets including rental property.
Ensure no capital items are included. / E15
E16 / Workers Compensation - Reconcile “Remuneration” amount to what was reported in the workers compensation insurance. The term “Remuneration” in the Work Cover is defined differently. Check Worker's Compensation declarations form (Advice of renewal) and ensure that the amount of wages in the declaration is the same as the P & L. Note: If policy date differs from the 30th June, reconcile accordingly. / E16
E17 / R & D Expenses – review accounting expenditure spent and claim R & D tax concession in Item 6 and label S, L, M & Y in Item 7.
For rules governing R & D expenses paid to associates click here. / Link / E17
E18 / Black Hole Expenses – deductible under S.40-880 under UCA system / Link / E18
E19 / Directors' Fees - check current directors prior to allocating fees.
Review Minutes of Meeting on Directors Fees. / E19
Check all expenses for private expenses and adjust accordingly.
Check Gross Profit and Net Profit margins with previous year.
Refer ATO Industry Benchmarks if available.
Compare all expenses this year with last year’s and note any significant differences.
Update Franking Account Return to include credits for tax payments made and dividends received during the year, and include debits for tax refund received and dividends paid.
Dividends
- Before paying dividends, check current shareholders and classes of shares held
- Review Minutes of Meeting on Dividends Paid and Statements to Shareholders.
Other Extraordinary Expenses – give full details and disclose in all other expenses column
- R & D tax concessions
D / BALANCE SHEET
ASSETS – CURRENT
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
A1 / Trade Debtors – An itemised list of trade debtors as at 30 June 2012. Reverse debtors from previous year, where applicable. Check Small Business Entity status & GST status. / A1
A2 / Value of Opening Stock at 1 July 2011 – Reverse previous year’s stock where applicable. List to be held by client. / A2
A3 / Value of Closing Stock at 30 June 2012– List to be held by client / A3
A4 / Value of Work in Progress – Or goods in transit as at 30 June 2012. Value of livestock as at 30 June 2012 if applicable. / A4
A5 / Debit Loan Account – Provide information including loans to related parties.
Consider Div. 7A implications and discuss with Partner. / Link / A5
A6 / Bonds, Deposits or Prepayments – provide confirmation advice. / A6
A7 / Bank Reconciled? Attach Reconciliation report and Year End Bank Statement. / A7
D / BALANCE SHEET
ASSETS – NON CURRENT
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
A8 / Depreciation Schedule and Reconcile to Year End Accounts
Consider review of Depreciation Schedule with Clients. / A8
A9 / Share & Investments at Cost – Holding Statements. / A9
A10 / Properties at Cost – Settlement sheet required for purchase.
Details on special building write off if applicable. Investments in related parties, reconcile to related entity. / A10
D / BALANCE SHEET
LIABILITIES – CURRENT
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
L1 / Trade Creditors – An itemised list of trade creditors at 30 June 2012. Check GST status / L1
L2 / Sundry Creditors – An itemised list at 30 June 2012. / L2
L3 / Accruals – at 30 June 2012. / L3
L4 / GST Collected – Reconciled to BAS – Check if annual GST reconciliation required. / L4
L5
L6
L7 / GST Paid – Reconciled to BAS.
GST Adjustments – Record GST adjustments & advise client if amended BAS required
GST Annual Balance – Record annual BAS liability if necessary / L5
L6
L7
L8 / PAYG Withholding – Reconcile to BAS and Wages Records. / L8
L9 / SGC Liability – Reconcile to Wages amount – Check opening balance & closing balance and deductibility / L9
L10 / Income Tax Provision – Detailed Worksheet including:
- Tax provision and add backs;
- Adjustments and non-deductible expenses;
- Instalments paid, TFN withholding Credits;
- Credit for tax withheld – foreign resident withholding amount;
- Check eligibility for investment allowance;
- Check and include any franking credits received.
L11 / Hire Purchase Loans – Reconcile to amortisation table. Allocate repayments within 12 months – less: unexpired interest charges. / L11
L12 / Lease Liability – Capitalise? / L12
L13 / Shareholders’ Loan Accounts
- Debt/ Equity Rules. If debt, ensure loan agreement in place. If equity, prepare “non share capital account”;
- Verify if the loan is statute barred, i.e. loan outstanding for 7 years or more.
Link / L13
L14 / Bank Loans – Reconcile to bank statements, attach reconciliation report and Year End bank statement. / L14
L15 / Other Loan Account – Provide information including loans to related parties. / L15
D / BALANCE SHEET
LIABILITIES – NON CURRENT
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
L16 / Hire Purchase Loans – Reconcile to amortisation table. Allocate repayments to end of loan, less: unexpired interest charges. / L16
L17 / Shareholders’ Loan Accounts – Debt Equity Rules. See L13 for details of explanation / L17
E / INCOME TAX RETURN
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
ITR1 / Income and Expenditure – Ensure labels are correctly completed, in particular at Item 6:
Income
- Label B – income subject to foreign resident withholding
- Label I – Fringe Benefit employee contribution, if applicable
- Label B – expenses related to income that is subject to foreign resident withholding
- Label X – depreciation expenses, if meets Small Business Entity test, fill in relevant information in Label 10.
ITR2 / Review reconciliation to taxable income or loss, particularly:
- Label D – amount subject to R&D tax concession;
- Label L – amount not including label M;
- Label M – amount claiming the additional 50% tax concession;
- Label Y – R&D tax offset, if chosen; and
- Label S – tax losses transferred in.
ITR3 / Schedule of losses carried forward, if loss is greater than $100,000
refer ATO losses schedule - Item 13 U & V
Also, update Item 7 R & S / ITR3
ITR4 / Franking Account and Franking Credits.
Are you required to lodge a franking account tax return?
Ensure following labels are updated and completed:
- Item 7 – Label J Franking Credits received for the year
- Item 8 - Label M Franking Account Balance 30/6/12
- Item 8 - Label H Excess franking offsets
NB: Excess franking credits are not refundable. / Link / ITR4
ITR5 / Personal Services Entities (PSE)
- Review if PSE
- Complete personal services income schedule if necessary
- Any PSE loss to be claimed in individual return
ITR6 / Review & input all reconciliation information at item 7 including:-
- F Deduction for decline in value of depreciating asset;
- E Immediate deduction for capital expenditure;
- H Deduction for project pool;
- I Capital works deductions;
- Z Section 40 - 880 deduction (i.e. Business establishment cost).
ITR7 / Review & Input financial and other information at item 8, including:-
- N Loans to shareholders (check the code);
- Z, A, P & E Depreciable items purchased / sold;
- D Total Salary & Wage Expenses;
- Q Payments to associated persons.
ITR8 / Review and input Small Business Entity depreciating asset information at Item 10:
- A Low cost assets (less than $1,000).
- B General Pool Assets (Less than 25 years).
- C Long Life Pool Asset (25 Years or more).
- Ensure total reconciles back to Item 6X and Item 7F.
ITR9 /
- Review and input calculation statement and calculate tax payable / refundable.
- Ensure tax payable / refundable reconciles to tax provisions in accounts.
- Ensure data transferred from Tax Software is accurate.
- Press "audit" and rectify errors.
- Are partners’ initials and name on the front of ITR?
T12 / National Rental Affordability Scheme / Link / T12
BAS / Annual Business Activity Statement to be prepared, if applicable / BAS
F / OTHER MATTERS TO BE CONSIDERED / F
Please mark "y" "n" or "n/a" where relevant - / Link / Prepared By: / Checked By:
Real Estate
- Does Business Own property?
Payroll Tax
- Review total wages & salaries paid, directors’ fees, superannuation etc., interstate wages, review current payroll tax & grouping with other companies' threshold.
QLD payroll tax - Threshold $1,000,000
VIC payroll tax –threshold $550,000
SA payroll tax –threshold $600,000
TAS payroll tax – threshold $1,010,000
WA payroll tax – threshold $750,000
ACT payroll tax – threshold $1,500,000
Any Matters that require mentioning?
Matters to be review or carried forward to next Financial Year?
Disclaimer: These notes are intended to be a guide only. Business Intranet Systems Pty. Ltd. (BIS), its directors, employees and consultants expressly disclaim any and all liability to any person, whether a purchaser or not, for the consequences of anything done or omitted to be done by any such person relying on a part or the whole of the contents. Do not act on the information without first obtaining specific advice regarding your particular circumstances from a tax professional.
© 2012 Business Intranet Systems Pty Ltd. This document is protected by international copyright laws. It is for your internal use only. Unauthorised distribution or reproduction of this information, or any part of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law.