CITIC Accounting is a registered tax agent designated by the Australian Taxation Office, CPA Public Practice designated by the Australian Institute of Certified Public Accountants, and ASIC Agent designated by the Australian Business Administration.
The team of CITIC Accounting Firm is composed of senior certified accountants and certified tax agents. Each accountant has many years of experience in his professional field. CITIC’s main clients include: individuals and small and medium-sized enterprise clients, real estate development and investment clients, Retail and service customers, physical and online chain brand customers, and investment immigration customers.

CITIC Accounting is a registered tax agent designated by the Australian Taxation Office, CPA Public Practice designated by the Australian Institute of Certified Public Accountants, and ASIC Agent designated by the Australian Business Administration.
The team of CITIC Accounting Firm is composed of senior certified accountants and certified tax agents. Each accountant has many years of experience in his professional field. CITIC’s main clients include: individuals and small and medium-sized enterprise clients, real estate development and investment clients, Retail and service customers, physical and online chain brand customers, and investment immigration customers.

Ms. Zhang bought 2 adjacent houses in 2005 for a total of $2,000,000 and after knocking down and rebuilding, Ms. Zhang developed 3 Town Houses on the same site and sold them for $1,100,000 each. As the purchase contract did not state whether the Margin Scheme could be used, we needed to help Ms. Zhang prove her eligibility to use the Margin Scheme. We were able to prove that as the house she bought was a residential property, the GST was not refunded at the time of purchase and now the Margin Scheme can be used to refund the GST from the purchase price.

If you use the Margin Scheme, you will need to pay GST ($1,100,000*3-$2,000,000)/11=$118,181. Save $300,000-$118,181=$181,819

We often receive many enquiries from small business clients on how to minimize their tax bills.

Based on many years of experience in the industry, we have come up with a number of effective tax avoidance methods that have helped our clients save a lot of unnecessary tax expenses in the near and long term. Some of these methods are.

• Pre-pay your expenses, pre-pay some of your expenses for the coming financial year while you’re still in this financial year. This can be things like your rent, insurance, and subscriptions to any professional associations. Up to 12 months of the coming year’s expenses can be deducted in the current tax year
• Take advantage of the $150,000 instant asset write-off, this enables you to immediately deduct the business assets you purchase from your assessable tax, both new and used
• Review your debtors, review your debtors and write off any unrecoverable debts. These debts will come off your income in the year in which you write them off, regardless of the year you invoiced them
• Know what’s on the ATO’s watchlist, each year when it comes to tax time the ATO likes to let Australians know the things it’s keeping an eye on for that year. So, it pays to be aware of what’s on their hit list. Common items are home office expenses, motor vehicle costs, or education expenses.

There are many other useful ways such as: to plan for business exit plan, contribute to your super, delay deriving assessable income, do stock take and write off obsolete stock, to name but a few. We can help you do tax planning short-term (current financial year) and long-term, keeping you up to date with new policies and anticipating and preparing for future tax issues.

Our client, Jack, works as a property salesman and was re-allocated to Nanjing, China for 3 years in 2016 due to the needs of the head office. When doing his tax return, Jack’s previous accountant considered Jack to be a non-tax resident and calculated the tax rate for Jack (tax rate $0-$90,000 32.5% $90,001-$180,000 37%) and as a result Jack had to pay a large amount of tax to the ATO.

After Jack came to us through a friend’s recommendation, we took a detailed look at Jack’s personal situation and understood his eagerness to pursue help to reduce his surprising tax bill. We spoke to the tax commissioner through the ATO tax agent hotline to discuss Jack’s personal circumstances, including the fact that his home was still in Australia, that he was receiving a salary from an Australian company and that he was returning to Australia regularly.

Successfully applied for private ruling for Jack’s case to classify him as a tax resident, and under the new tax rate ($0-$18,200 tax free $18,201-$37,000 19% $37,001-$90,000 32.5%) successfully saved Jack The new tax rate ($0-$18,200 tax free).