If you go through your financial records and realise that you’re not correctly reporting transactions or keeping appropriate records, talk to a registered tax professional and make sure that you correctly report the use of the company or trust money or assets in your next tax return.
If you have made a mistake or left something out of your previous tax returns, you can lodge an amendment.
You can use the Division 7A calculator and decision tool to work out whether a payment your company has made will be treated as an unfranked dividend. The calculator also works out the minimum yearly repayment that must be made each year.
If you make an honest mistake when trying to comply with these obligations, you should tell the ATO or your registered tax agent or accountant as soon as possible. There are ways you can get back on track without a penalty.
In summary, remember these key things.
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Keep your business and personal bank accounts separate
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Keep good records
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Properly account for business money or asset you use for private purpose
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Repay money you owe to your business
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Get help to set up your trust
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Get advice from your professional advisers
