A common question we get asked by new businesses is why they don’t receive a tax refund from the ATO when their company made a loss. This often occurs in the first 6 – 12 months of trading when business owners invest heavily in their business getting it off the ground and don’t make money in the first year of trading.
The reason a company won’t receive a tax refund is that they haven’t paid any tax so as the name suggests, there is no tax to refund. So, if companies don’t receive a tax refund when they make a loss, the next question is whether the losses in the company are wasted? And the answer is No! Continue reading “Tax Tip Tuesday: Company losses, do I get a tax refund?”