First Principles of Business Law

Business organisations in Australia

2. Sole traders

Question 9. Can a sole trader apply for a tax file number for their business?

 

 

 

Read the statements below and select the best one.

(a) Because all business profits are taxed differently from the income of an individual, a sole proprietorship must have its own Tax File Number.

(b) Because the profits made in business by a sole trader are taxed as part of the sole trader's personal income, it is the sole trader who must have a Tax File Number, not the business.

 

 

 

 

 

 

 

 

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