Rammifications of ABN. Are there any?

Discussion in 'Accounting & Tax' started by CJ. Wentworth, 15th Mar, 2008.

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  1. CJ. Wentworth

    CJ. Wentworth Active Member

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    This question comes from a rather silly situation in the grand scheme of things.

    I've been told that registering and owning an ABN is free, and generally Telcos, ISP's, etc give better deals to ABN holders.

    Are there any downsides to registering for an ABN if it's sole purpose would be to get better deals on consumer goods/other such paraphernalia.
     
  2. GavinC

    GavinC Active Member

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    ABN's are for businesses, enterprises and companies only. Since on the application form it makes this clear, and also that penalties may apply for false or leading information, these are the potential downside. In reality the ATO will probably just deregister you once it realises you weren't entitled to one in the first place.

    My own opinion is the ATO should crack down on a people giving crap tax advice (get an ABN and i can sell this phone to you at half price!), but given this particular problem is small in the scheme of things, nothing will happen.

    Anyhow businesses themselves will suffer for extending terms of trade appropriate for businesses to non business customers, so it's their own fault.
     
  3. voigtstr

    voigtstr Well-Known Member

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    The only way I could get the phone I wanted last year was to reregister a lapsed ABN. (I had closed it because I never got my fish tank building hobby, passed that of being a hobby). When I reregistered the ABN I changed the description to IT consultancy since it was more likely that I could charge for trouble shooting friends of friends pc's. As it happens I havent actually done any business doing that either. But having the ABN was the only way that Crazy John's would let me have the i-mate jasjam pda/phone on a $50 a month plan.
     
  4. NickM

    NickM Well-Known Member

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    Yep, i hear this one often, particularly for people trying to get Lo or No doc loans.

    As Gavin correctly pointed out. IT IS AN AUSTRALIAN BUSINESS NUMBER.

    Only a matter of time before a broker gets sued by the banks for encouraging a client to get an ABN just so the ycan get a loan.

    ATO will just deregister the inactive ABN in due course but generally they take about 3 yrs to realise it is inactive.