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Tax issues and opportunities for SMEs with EOFY looming
Against the backdrop of COVID-19 and now a national recession, it is more critical than ever that boutique law firms be on top of their tax obligations.
Jerome Doraisamy
Law firms across the board, particularly those in the boutique space, have experienced a “time of significant change” in recent months, which has required legal professionals to adapt to new circumstances without compromising service standards. It is especially important, Greenwoods & Herbert Smith Freehills associate Helena Papapostolou said, that such standards be maintained with tax season looming.
Challenges at this juncture
It is imperative, she said, that boutique firms appreciate the importance of maintaining the level of service expected by clients at tax time, particularly in the wake of a pandemic-inspired recession in the background.
“We are experiencing a time of significant change that requires us to adapt to new circumstances without compromising our service standards. It has been essential to maintain a strong team ethos when entire firms are working from home,” she said.
When it comes to managing one’s tax considerations, a boutique firm “should [always build] client relationships and maintain their standing as a trusted [adviser]. In the age of COVID-19, the challenge is not only giving technically correct advice, but preparing commercially sound advice recognising that both the market and the clients’ circumstances may have changed. Also, delivering advice [online] and with follow-up virtual meetings,” Ms Papapostolou advised.
The JobKeeper and related COVID-19 measures have “certainly” kept Ms Papapostolou busy, she reflected, including across a range of small, medium and large clients.
“As great as it has been to be able to get these payments, waivers and deferrals for clients, it will make tax more complex in a time of uncertainty. This extends to all businesses and each will adopt a different strategy in response to the change,” she said.
“Firms should engage their talented people to be across payroll tax impacts of JobKeeper, income tax and GST impacts of rent deferrals in detail. These are some of the main issues which small businesses will seek advice. To manage this new working environment, it is essential to approach any task with a new outlook and positivity. It presents an opportunity to challenge the status quo and discover innovative solutions.”
Emerging opportunities
When asked about potential benefits that could be gleaned by boutique firm leaders in navigating their tax matters at this point in time, Ms Papapostolou said that key to this question is appreciating that a “positive attitude” can and should be applied to all challenges, with tax season being no different.
“Tax [advisers] and law firm leaders alike have been tasked in recent months with distilling large volumes of new legislation, tax concessions and ATO guidance to advise clients. Boutique law firms should recognise the opportunity to share this information with clients in a new way. I have been involved in preparing client updates in real-time communicated on online platforms, running interactive webinars with hundreds of attendees to share these tax updates and hear the client perspective,” she said.
“This is an opportunity for boutique law firms to engage with clients and build working relationships, to learn more about their clients’ business and showcase how they are relevant and adapting to the changing circumstances. I have really enjoyed working with clients on the various measures as it has meant working with people across the organisation.
“In the age of COVID-19, we have been pushed to reconsider business operations and see new opportunities.”
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
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