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Hana1(Initiate)Initiate
4 Feb 2021

how to treat a company taxable income for a medical practice with one director ( the Dr) ? no Salary was paid for the year of 2020 FY and the previous accountant has lodged the CTR leaving a balance under Director's loan, how can this be fixed in 2021 FY ad what can i advise the Dr as a director because by reading the ATO ruling , A medical practice company should have no taxable income.The total income for the year after expenses should have been fully paid out to the professional person by way of salary.

Please Advise! i need to do the BAS for Q1 & Q2 for 2021 FY , and also i can see some private expenses in the company bank statments.The Company has started in Feb 2020.

Thank you !

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CaroATO(Community Support)Community Support
10 Feb 2021

Hi @Hana1,

An amendment will need to be completed for the 2020 financial year showing the income was distributed to the sole director as either wages or bonuses and/or superannuation contributions. This will ensure the medical practice is compliant.

Definitely have a chat with your accountant about where to allocate the private expenses on the company bank statement in your accounting software.

I certainly understand how frustrating it can be when a business account is used for private use. You might want to have a read up on our web site about business accounts.

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Most helpful reply

CaroATO(Community Support)Community Support
10 Feb 2021

Hi @Hana1,

An amendment will need to be completed for the 2020 financial year showing the income was distributed to the sole director as either wages or bonuses and/or superannuation contributions. This will ensure the medical practice is compliant.

Definitely have a chat with your accountant about where to allocate the private expenses on the company bank statement in your accounting software.

I certainly understand how frustrating it can be when a business account is used for private use. You might want to have a read up on our web site about business accounts.

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A medical practice company with one director ( the doctor) and no employees, | ATO Community