Shareholder update - goodbye GSK toothbrush?, page-70

Hi Smac

I did a little bit more digging around as small companies tend to work a little differently to most and I think I jumped the gun as there is a way around what I was expecting.

GST BAS is the collection of tax both income and expenses. The net is either paid to the ATO or refunded from the ATO.
Also, Companies work on an accrual basis not cash. So If you invoice someone you need to pay the ato 10% even if you have not received the payment.

QTR Pymt & Lodge
Jun 28 July
Sept 28 Oct

As at June 30 in the BS there is 46k in debtors (refer note 5) that is GST refundable. So in the next BAS return being 28 July 46k would be refunded as this is GST net paid.

This would have been seen in the next 4C for Sept lodged 30/10/14 but we have nil.

Then this latest 4C has 7k paid. Which would mean in normal companies that income that was invoiced was more than expenses. But as below an instalment is a way around this.

Reasons for nil refund:
BAS return not lodged,
ATO slow with the Refund or
what I think it now is:
Annual return method is selected (which would mean instalment payments during the year only if you elect that your GST turnover will be under 75k) This method requires a return in Feb which we would see a refund in March 4C. Had a look at the 4C last year and a refund was in that period and basicly refunded the prior 3 4C payments as no local income.

Foreign income is GST free as it is an export sale and holds to what I thought it should be as it would be very odd to get the local office paying on behalf of HQ .

So sorry for the excitement. But learnt a bit more today and that's a good thing.