P: (03) 428 2760

Back to Blog

COVID-19 – Tax loss continuity example

Currently, if more than 33% of the shareholding changes the losses of a company are forfeited, what is being proposed is that this is reduced or removed for equity changes. Here is an example provided; A start-up firm, Conference in the Clouds Limited (CIC) offers microphone and webcam software. It has been making large losses in recent years. However, it now wants to scale up significantly, given that more people are working from home and using videoconferencing. Despite its promising early-de...

May 22, 2020

COVID-19 – Loss carry-back scheme

If your business was making a profit the in 2019/20 (2018/19) and now you are forecasting a loss in the 2020/21 (2019/20) year you can “move” some/all of that loss into the previous year and reduce the tax that you paid for this year and get it refunded. Here is an example provided; Wiki Hospitality Limited (Wiki) has had a profitable year for the year ended 31 March 2020. It has not yet finalised its tax return, but it is expected to return $2m net income. Its final provisional tax payment ...

May 22, 2020

COVID-19 Wage Subsidy Extension- from 10 June 2020

From the 10th of June businesses can apply for the Wage Sudsidy extension.  The Criteria has changed from the initial 12 week one; Your Revenue for the last 30 days must be 50% lower than the same period last year ie 10th of May 2020 to 10th Jun 2020 compared to 10th May 2019 to 10th June 2019.It will cover 8 weeks per employee from the date you submit your application.It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy.You'll need to agree t...

May 22, 2020

COVID-19 Small Business Cashflow Loans

The Small Business Cashflow (Loan) Scheme (SBCS) has been introduced to support businesses and organisations struggling because of loss of actual or predicted revenue as a result of COVID-19. They must have 50 or fewer full-time-equivalent employees.Inland Revenue will administer the payments and repayments of this scheme. Applications will be open from 12 May 2020 to 12 June 2020 inclusive.Eligible businesses and organisations are entitled to a one-off loan. The maximum amount loaned is $10,000...

May 21, 2020 Posts 1-4 of 4 | Page