Our Case Studies
We have many stories of how we have been able to serve our clients with sometimes unusual circumstances. Here we explain these cases to help you develop an understanding of the depth and breadth of experience TSP Accountants bring to every client situation.
TSP Saves Client $30,000 in Capital Gains Tax!
One of TSP’s long term clients, aged 65 and retired, came to TSP for some advice relating to the sale of an investment property.
The property had been owned for over 10 years with capital gains tax required upon sale.
TSP immediately conducted several calculations with the findings of a significant capital gain on the property pushing the client into the top rates of tax in this particular instance, some taxed at 39% and the rest at 47%!
The team set out to investigate any available deductions to reduce the client’s liability and found a potential option in the utilisation of personal superannuation contributions.
TSP determined the client’s super balance as at 1 July 2021 was $400,000, without making any super contributions for the 2019, 2020, 2021 or 2022 financial years. The client was advised to use the carry forward unused concessional contributions rule to facilitate contributions to their super of $102,500 of the sale proceeds and claim a tax deduction, thereby reducing the capital gain.
Enabling this rule, essentially converted $102,500 of the capital gain from the 47% and 39% tax rates to 15% payable in the super environment, saving the client $30,000 in capital gains tax!
As the client is retired and has reached the preservation age, they were able to immediately access the super contribution in the form of a tax free pension.
This case study is another example of TSP Accountants assisting our clients with optimising their financial future not only doing their taxes! Our team has the extended knowledge of many available options and the capability to provide real solutions.
Shortfall in Medical Renumeration Package Uncovered
Our personal medical client came to TSP to complete their yearly taxation return. Along with the regular group certificates were also monthly income reports from their employer.
Whilst working through these records and documents, TSP uncovered several anomalies with regard to our client’s remuneration in the form of shortfall payments in income.
With some in depth analysis, we were able to clearly identify the shortfalls giving our client the documentation required to start an open conversation with their employer.
The employer acknowledged the shortfalls and was eager to correct and rectify the situation as quickly as possible.
The end results being past income was corrected and future income was adjusted to reflect the accurate remuneration of our client.
With TSP’s assistance our client was able to amicably rectify the situation and move on to a productive tenure with their employer.
This was a great outcome for both parties and TSP were very pleased to be of service to our client.
TSP Accountants possess a great deal of experience in the medical sector with many of our clients practitioners, part of a medical practice or owning their own practices. Contact us below to get our experience working for you too.
How We Assisted Our Client Save Hefty ATO Fines
One of our clients, also a member of a Self Managed Super Fund, withdrew funds from their SMSF during the 19/20 financial year. Unfortunately the member had not yet reached their preservation age and were not able to access these funds.
Upon the preparation of the member’s financial statements and tax return for that financial year, we found the actual withdrawal was in fact a breach of the SIS Act 1993 which prohibits super funds, including SMSF’s, from providing financial assistance to members or their relatives [except in limited circumstances]. This was not one of those limited circumstances.
Working with our client, we were able to structure a solution whereby our client was able to repay the money back to their SMSF.
The SMSF Auditor was still required to lodge a contravention report with the ATO as part of its audit, reporting the actual breach and the critical information of the rectification of the breach.
In these circumstances, having the experience of the TSP Accountants team on their side, the client was able to avoid the ATO taking any further action and providing leniency on this occasion.
SMSF’s can sometimes be hard to navigate on your own. TSP Accountants are experienced with all facets of SMSF reporting and auditing practices and so we can assist with the preparation, maintenance and management of your compliance and tax obligations. If you have any questions, let our helpful and friendly advisors assist.
Getting Money Out Of A Company May Not Always Be Easy!
Just recently one of our clients came to us with a dilemma they were facing. They owned a business held in a company structure. With the intention of doing the right thing by the business, they had always only taken a wage and kept the remainder of the profits in the company. However, on this occasion, our client needed to access additional funds for personal reasons. Instead of approaching a financial institution for a loan, they felt it better to access the funds from the business.
TSP Accountants were afforded an excellent opportunity to review the company’s shareholder structure in turn allowing us to provide a tax effective solution to access money from the company.
The review also gave us the chance to suggest alterations to their business, further improving their ability to access company funds in the future whilst at the same time minimise tax obligations.
Company structures can be complex at times, it is always best to seek out professional advice to ensure you are abiding by your legal and tax obligations relevant to your business structure.
If you have a company and would like to seek some advice, TSP are experienced professionals who may assist you. If you have any questions at all please feel free to contact us through the button below.