Business Tax_Assement#1.docx - Assessment 1 u2013 Written...

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Assessment 1 – Written or Oral Questions Peter and Mary use partnership (50%:50% ownership) to start a new restaurant business with the name of APC Restaurant. The estimated turnover for the first year is $66,000. The business is planning to employ some workers who hold working holiday visa. Undertake your own research from “Business” Section in the ATO website, or use your own knowledge and experience to answer the following questions: 1. List five (5) types of compulsory registrations that APC Restaurant needs at this stage and use one (1) sentence to briefly explain the reason. (Hint: You should take into account the business registrations and taxation registrations. You may consider using the following table to answer this question. The first entry in the table is example only.) Types of Registrations Reason Example Online services Peter and Mary can do tax transactions for their business online using online services such as Business Portal. 1 Australian Business Number (ABN) Peter and Mary have to register the ABN because it has to be legalize and known by government also it is a number that allows you to identify your business to government and to your other businesses too. 2 The Business Name Peter and Mary have to register the Business Name because they might be took to them if they not been registered also it allows the company to differentiate yourself from your competitors 3 Australian Company Number (ACN) They have to register their business as a company, They will be given an ACN by the Australian Securities & Investments Commission (ASIC), then they will need to apply for them ACN before getting an ABN 4 Tax file number (TFN) Peter and Mary must have a TFN regardless if they are planning on running your business as a sole trader or they are operating as a partnership, company or trust, they will need to register 5 Pay as you go (PAYG) withholding As employers, APC Restaurant would have to withhold wage tax and will register to withhold PAYG. They must register for withholding PAYG because,for taxpurposes, they must withhold an amount from a payment. Later, due to the growth of sales, Peter and Mary expect their business turnover to increase to $120,000 per year.
2. What additional registration will be applied to APC Restaurant to ensure they are complying with all relevant regulations? Use one (1) sentence to briefly explain the reason.

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