What is interesting though is Note 13 on the Half Year...

What is interesting though is Note 13 on the Half Year Financials:
http://www.asx.com.au/asxpdf/20170316/pdf/43gvgvmbwb23ph.pdf

Payments to:
WW - Azalea Consulting Pty Ltd
KJ - Wavecap Holdings Pty Ltd
HB - Milagro Ventures Pty Ltd
BN - Grainger Consulting Pty Ltd

My tax accounting is a little rusty, but doesn't the PSI tax laws state that if someone is providing services on a non-employee basis, they must pass certain rules like:

-https://www.ato.gov.au/business/personal-services-income/working-out-if-the-psi-rules-apply/
-https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Working_out_if_the_PSI_rules_apply.pdf

Rules are:
For the PSI being tested, you must be:
■ paid to produce a specific result
■ required to provide the equipment or tools, and
■ required to have mistakes fixed at your own expense.


Then go look at the recent Half Yearly Report, Note 3:
Computer Fees - $1,867-
General Office Exp - $2,177-
Printing/stationary - $7,561-
Telephone - $879-
Travel/Accom' - $61,932-

If these people are all being paid through private entities you would think that it is clear that they fail the PSI tests... i assume at least.

Considering that the above 4 make up the entire work force of BGS and are all providing their services through PTY LTD structures, why would BGS need expenditure in the above areas of; Comp Fees, General Office Exp, Printing/Stationary, Telephone, Travel/Accom.

@The Guatemalan
Your thoughts?


***i am not a tax accountant and anything i say should be taken with a grain of salt***