Australia took about a year to explain 1999 to June 2000, but most of that was explaining how gst worked - there are many exemptions on food medical education and the like which makes working out much more complicated, unlike New Zealand where gst is on everything. Zimbabwe I dont know, but I do know that they asked the ato for help. and the ato must have advised them of the rolls royce system where politics had not impact on the design????
But the best system I have ever seen is Zimbabwe - yes Zimbabwe of trillion dollar banknotes fame if you mind. There because the president does not care if all businessmen leave the country tax is on a sensible Dec year end like usa (too bad for the stocktakers working all night on new years eve instead of dancing) What you do there is put your balance sheet and pnl on first col of spreadsheet, then you divide that into 12 cols and pay the tax on each month to be lodged and paid by 7th of month subsequent, If it varies with sales then adjust and have a good reason for doing so. Every business must buy a machine (like a fax special purpose only) and every invoice and receipt made out must be sent direct to tax office where is it digitally collated. What a magnificent system.
All the bas return is the gst paid and the gst recovered and the net balance is what is paid. This has to be reconciled with annual accounts at end of year and just as well ato does not require accounts for tax because the clients on prop software debit hp instalments and the like to the cost of the asset instead of off hp account and without calculation of interest - it is usually a mess and net profit would always be 50% wide of the mark. but the instalments of gst and paye submitted quarterly is much better for fiscus and the client to manage tax payments. Also included in qtly instalments is a thing called pay as you go (not as you earn) which is like provisional tax levied on last years tax payable marked up by 10% and split into quarters - tough on the third year into business unless your accountants insists on you giving and estimate.
My answers
Are you referring to the statements of cash flows? I have never thought they were of any use if you are.
Australia took about a year to explain 1999 to June 2000, but most of that was explaining how gst worked - there are many exemptions on food medical education and the like which makes working out much more complicated, unlike New Zealand where gst is on everything. Zimbabwe I dont know, but I do know that they asked the ato for help. and the ato must have advised them of the rolls royce system where politics had not impact on the design????
But the best system I have ever seen is Zimbabwe - yes Zimbabwe of trillion dollar banknotes fame if you mind. There because the president does not care if all businessmen leave the country tax is on a sensible Dec year end like usa (too bad for the stocktakers working all night on new years eve instead of dancing) What you do there is put your balance sheet and pnl on first col of spreadsheet, then you divide that into 12 cols and pay the tax on each month to be lodged and paid by 7th of month subsequent, If it varies with sales then adjust and have a good reason for doing so. Every business must buy a machine (like a fax special purpose only) and every invoice and receipt made out must be sent direct to tax office where is it digitally collated. What a magnificent system.
All the bas return is the gst paid and the gst recovered and the net balance is what is paid. This has to be reconciled with annual accounts at end of year and just as well ato does not require accounts for tax because the clients on prop software debit hp instalments and the like to the cost of the asset instead of off hp account and without calculation of interest - it is usually a mess and net profit would always be 50% wide of the mark. but the instalments of gst and paye submitted quarterly is much better for fiscus and the client to manage tax payments. Also included in qtly instalments is a thing called pay as you go (not as you earn) which is like provisional tax levied on last years tax payable marked up by 10% and split into quarters - tough on the third year into business unless your accountants insists on you giving and estimate.
frs105 cash flow statement
No mention made of cashflow statements for 105 micro entities - we can take it that these are not required?