Prior to 30 June 2014 you should review the trade debtors of your business for any bad debts.

Providing that your business is assessed for income tax on an accruals basis you will be able to reduce the assessable income by writing off any bad debts.

Furthermore, if your business is assessed on an accruals basis for GST there will also be a GST adjustment reducing the GST liability as well.

Taxation Ruling TR 92/18 provides guidance on how and when a bad debt is treated.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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