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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 42659
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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Am aware Tax records need to be kept yrs after date of

Customer Question

Am aware Tax records need to be kept for 5 yrs after date of lodgement - is it same if Company &/or Director as an individual has gone bankrupt
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good MorningMy name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.The ATO only requires record to be kept for 5 years. It used to be 7 years but it has not been reduced to 5 years. For business records again it is 5 years. Are you trying to locate documents?
Customer: replied 1 year ago.
Did you mean "it has NOW been reduced to 5 yrs ??"No, just enquiring is it still 5 years given the facts the documents have been reviewed thoroughly by insolvency agents, gone through what was ITSA - my thought is why would they audit a bankrupt entity other than to see if trading whilst insolvent pre Bankruptcy. However this should have been found (if applicable) by insolvency agents during investigations and creditors meetings.
Expert:  Leon replied 1 year ago.
Good AfternoonIt is 5 years for an individualThey do not have to prove they were solvent before bankruptcy.An entity is not bankrupt. If it is a company it is in liquidation. Only individuals can go bankrupt. A company has to comply with ASIC for their records. Under the corporations Act that is 7 yearsHere is some information. http://asic.gov.au/for-business/running-a-company/company-officeholder-duties/what-books-and-records-should-my-company-keep/I hope this is clearer. If there is nothing further thank you for using my services. If I have missed anything, or you have any further questions please let me know If there is anything else in the future please do not hesitate to ask. Please do not forget to leave positive feedback. RegardsLeon
Expert:  Leon replied 1 year ago.
Good Afternoon
I'm just following up our discussion earlier this week and seeing whether there is anything else I can assist you with.
If I have missed anything, or you have any further questions please let me know.
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
I look forward to hearing from you.
Regards
Leon