Rex: ‘Rex’s Snack Bar’ & ‘Rex’s auto shop’

Rex starts a small snack bar business at NPF plaza. Rex employs 2 people to help him to run the kitchen and serve customers. Rex also runs a small auto repair business. He does not employ anyone else to help him in this business. He operates this business as a sole trader as well. Rex will need to register as a sole trader.

He will receive on TIN. He will use the same number for payments for both businesses. Rex will need to lodge one income tax return that shows the income and relevant deductions for both businesses. He will lodge this return using his TIN. During the year Rex may also have to make other tax payments such as PAYE, provisional tax and sales tax. Rex will also use his TIN when lodging relevant forms and making these payments.

Irene and George: ‘Accountants Plus’

Irene and George have been working for an accounting firm for many years and decide they would like to go into business together and run their own accounting practice. They form a partnership
whereby they agree to share the profits and expenses of the business on an equal basis. They employ someone to assist with reception duties. They call their business ‘Accountants Plus’.

Irene and George need to register their business with Inland Revenue. They will receive one TIN for the partnership. Irene and George will also receive their own individual TIN. They will use the Partnership’s TIN when making any tax payments for the partnership such as PAYE.

 A partnership does not pay income tax although it must lodge an income tax return showing the income and deductions of the partnership and how they have been shared between the partners. Each partner will have to pay provisional tax and lodge an income tax return. Irene and George will use their own TIN when paying their provisional tax and any income tax payments payable on assessment of their return.

Margaret: Adco Warehouse Pty Ltd

Margaret decides to set up a business importing goods for resale to other businesses and customers in Solomon Islands. Margaret sets up a company to run the business – Adco Warehouse Pty Ltd. Adco Warehouse Pty Ltd employs 3 staff. The company will need to register with Inland Revenue and obtain a TIN. The company will lodge tax returns and pay taxes such as provisional tax, PAYE, Goods Tax etc using the TIN. If Margaret only receives dividends or employment income from the company she will not need to lodge a return or have her own TIN. There are some exceptions depending on the total income Margaret receives from these sources.