What is a company statement for ASIC?

[Georges]

An accountant who did one of my company tax, just billed me $150 for preparing a Company Statement for ASIC. Along it she sent me $220 that ASIC is charging to register the company yearly.

I am actually not in speaking terms with this accountant, we had an argument a few months ago over a mistake in past year financial statement. And she refused to fix it up and did not answer my emails or calls. Now suddenly she sends me this $150 bill for preparing Company Statement for ASIC.

Should I be paying her? I didn't ask her to prepare anything. Furthermore, we are not in speaking terms at all.

The company has no activity last year and I do not wanna do anything with it for the next few years probably until I decide to.

 

[alexlee]

An accountant who did one of my company tax, just billed me $150 for preparing a Company Statement for ASIC. Along it she sent me $220 that ASIC is charging to register the company yearly.

I am actually not in speaking terms with this accountant, we had an argument a few months ago over a mistake in past year financial statement. And she refused to fix it up and did not answer my emails or calls. Now suddenly she sends me this $150 bill for preparing Company Statement for ASIC.

Should I be paying her? I didn't ask her to prepare anything. Furthermore, we are not in speaking terms at all.

The company has no activity last year and I do not wanna do anything with it for the next few years probably until I decide to.

It sounds like the annual return for a company to lodge information such as shareholders, directors, etc.

Most accountants have a standard process for the annual returns. You don't have a choice about lodging the annual return, though: it's required by law. If you're not speaking to your accountant, you should really have moved the work to another accountant.
Alex

 

[NickB]

It sounds like the annual return for a company to lodge information such as shareholders, directors, etc.

Most accountants have a standard process for the annual returns. You don't have a choice about lodging the annual return, though: it's required by law. If you're not speaking to your accountant, you should really have moved the work to another accountant.
Alex

My accountant did the same thing. Maybe they are the same accountant.
I rang them up and told them that I will manage the company myself.
After all, why would I pay someone $150 to write a company minute and forward on a cheque that I had to send to them anyway?

N

 

[alexlee]

I think lots of accountants use the same system. In most cases it's a standard form and letter. Usually the fee includes a charge for using the accountant's offices as the registered address. Maybe you want that, maybe not. If you are happy to do it yourself (remember there is a deadline) of course you can do that.
Alex

 

[Pushka]

This was one of my total bugbears with my OLD accountant. He would charge $200 for doing one of these (plus the ASIC fee) even though there were often details wrong on them - because they got their secretary to send them out and she didnt know all the correct details. She would send out a bunch of them on the one day - nice little earner for the accountant!

 

[dcarr]

Standard practice... $150 to $200 preparation fee is around the mark.

Every year I swear to myself that I'll figure out what needs to be done and do it myself the next year. How hard can it be?? And the next year I'm surprised to receive the form and bill from the accountant for this legal requirement which I had completely forgotten about

 

[alexlee]

That's the main point of letting your accountant do it. It's a legal requirement to do the return, and many people would just forget if they had to do it themselves.
Alex

 

[Pushka]

It really is just paperwork for the sake of collecting a fee though, isn't it. ASIC seem very keen on dotting the 'I's' and crossing the 'T's', but when it comes to preventing any type of company fraud, well, they are never there.

 

[Georges]

I remember my own accountant doesn't charge me this for my other company.

Now this other accountant my co-director in melbourne appointed, bah $150 for some paper work that I didnt ask them to do, when they dont wanna speak to me anymore.

Question: HOW CAN THEY THINK THEY STILL ACT AS MY ACCOUNTANT IF THEY DONT REPLY TO MY EMAILS? I asked them to fix up a mistake in last year's financial statement, they totally don't reply my email. Do I have a case here? Any institute to complain to?

 

[Mry]

A company statement is not actually something that needs to be lodged, but you should check the details. ASIC sends them to your registered agent, or to your nominated address. All you need to do is pay it. If you don't pay it, ASIC revokes the registered status of your company after about two years and thus the federal government takes control of the company and its assets. Cost to fix - $6000-9,000.

By the way, no one prepares these forms. ASIC generate them. I download the form from ASIC as a pdf, print it and mail it to the client.

I do charge for the annual return when it gets sent out to my clients, but that fee covers the sending of the document, the solvency resolution form that must be signed in conjunction with the document and then company changes that must be made during the year (changes in share ownership, address changes, director and secretary changes) are not separately charged for (ie free). I don't know what other guys do.

 

[acer]

ATO requests Trustee company return

Dont know if this is related, but we recently recieved ATO letter requesting us to lodge returns for our FT trustee company. They want these for the past 3 FYs. Rang accountant who said its somnething the ATO have been sending to trutee companies, and whilst they advise ATO the company is trustee / nil trading, the ATO seems to have changed practice and is now wanting returns for all companies, regardless if they trade or not.

Is anyone else aware of this situation?

 

[Mry]

That's incorrect Acer.

The ATO does not require trustees to lodge tax returns unless they earn income in their own right (ie not as trustee). What probably happened was your accountant obtained a TFN for the company and for the trust as well. The ATO has been expecting a tax return for the trustee since it had a TFN issued and hasn't received one so it is demanding them.

This can be fixed quickly by logging on to the tax agent portal and lodging "No returns necessary" notices, and telling the tax office that no more are required. Takes about 5 minutes, tops.

 

[acer]

Thanks for the reply Mry, but I thought the same yet when I called and spoke with my accountant (large firm) he stated that the ato is issueing these letters to corp trustees......he said he also received same for his FT. We have had this setup for 3yrs and this is the first yr they asked for returns......each prev yr the accountant would lodge inil return necessary, but this year they seem to be asking for full return regardless if the company trades or not.

I am curious now if anyone else received this letter? as accountant stated many of his clients have received one this year.

 

[Pushka]

We received one last year, so hopefully the accountant has got his act together - he seemed surprised to receive it though!

 

[Mry]

Acer, I still doubt it. Check with your accountant to see if they applied for a TFN or ABN for the company in its own right. If they have, that's why you are getting a notice. If not, that's really odd.

 

[acer]

We received one last year, so hopefully the accountant has got his act together - he seemed surprised to receive it though!

Pushka, do you now have top lodge return every year or was it one off? it would add costs to maintaing Trusts if required each year??

 

[Modal Harmony]

Quite agree with Alexlee and Mry - the ASIC returns are a necessity yearly even if the company is halting trading. The rates quoted are what we get charged for our enterprise as well.

Also agree Georges that it's time to get a new Accountant; non-reply to accounting matters when IP's (or any other investment for that matter) is concerned is unacceptable.

 

[austini]

Hi Gang,

So if I understand correctly if one wanted to avoid accounting fees for the processing of the annual ASIC return for a typical trustee company then all that need be done is:

1. Nominate your own address as the registered address and have the ASIC annual statement/invoice sent to you directly and simply pay by Bpay etc.
2. Complete the solvency form and file it if solvent.
3. In terms of address changes etc generally these can be done by yourself online at the ASIC site free of charge to the best of my knowledge. ASIC send you a corporate key which is used as an identifier for your company to do such things.

Does this sound correct?

I may be wrong but recently I thought I saw that one particular accountant was charging $150 pa for each company for the annual return/storage and around $110 for things like address changes. If you have multiple trustee companies for disc trusts and SMSF etc then these costs can start to add up.



Cheers - Gordon

 

[alexlee]

ASIC doesn't send you an invoice. You have to remember to do it.
Alex

 

[s_t]

????????? They send me one.....

ASIC doesn't send you an invoice. You have to remember to do it.
Alex