Zero reporting is a set of tax, accounting, and statistical reporting, which must be submitted to the regulatory authorities by a taxpayer who, for whatever reason, does not carry out financial and economic activities.
Who must submit zero reporting and what will happen if it is not submitted on time
Such taxpayers include companies that do not conclude contracts, do not charge wages, and do not have current account movements. The need to draw up and submit zero reporting usually arises for start-up entrepreneurs who have registered a legal entity, but due to the lack of a client base or lack of start-up capital, did not start commercial activities, as well as for those who temporarily suspended their activities, but did not liquidate their company. In addition, zero reporting is required if the taxpayer’s financial and economic activities are seasonal.
visit us: Bookkeeping Services in Melbourne
At the same time, it should be borne in mind that the tax office has the right to contact. The bank where your company’s current account is opened and check whether you received any profit during the reporting period. Therefore, zero reporting must be taken seriously. If during the reporting period there was any result of commercial activity (it does not matter – profit or loss). Then the usual tax and financial statements must be submitted to the regulatory authorities.
Failure to submit returns on time will result in a fine. Failure to pay this fine may result in a prison sentence of up to 15 days.
How to make a zero statement
In zero reporting, the balance sheet currency should not exceed the size of the authorized capital. And in the Profit and Loss Statement, profit should be zero. You need to submit a zero report:
- to the tax office.
- The statistical authorities.
- to funds (Pension Fund of Australia, Social Insurance Fund).
An enterprise that operates under the main taxation system must submit zero statements once a quarter. Individual entrepreneurs submit zero reporting once a year.
In appearance, zero reporting is a document that takes about 50 pages and must contain numerous seals and signatures of responsible persons. At the same time, from time to time there are changes in the forms on which reports must be submitted, the details for which it is sent, and even the deadlines for submitting zero reports. Therefore, even in the absence of commercial activities, you can run into a serious loss in the form of a fine for the late filing of reports.
For the tax authorities not to have questions about your zero reporting. It is best to entrust its preparation to professionals.
It will cost you quite inexpensively, besides, you will be able to avoid it. The risks associated with a close inspection of your company by authorized bodies. Appointed in connection with incorrect reporting, as well as fines that are imposed on entrepreneurs who did not submit such reports on time. By contacting us, you will be able to save yourself from having to delve into the intricacies of tax legislation and will be able to focus on how to still start making a profit from your company.
Read Extra: Business tutors online
