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Finance Newsletter December 2014/January 2015
November 28, 2014 | 
Author Do you have the most suitable loan for your circumstances?
Do you have the best rate available?
If your interest rate is over 4.39% variable (comparison rate 4.40%) then you may be able to save thousands per year by changing loans and or banks. Heritage bank is currently offering customers 4.39% variable for home / investment loans. No application fee and no ongoing monthly or annual fees. Loans from $150 000. Offset account available for 4.69%. Conditions apply. So if you are interested in saving thousands per year call Mercia Finance to see if you can benefit from a better rate. It’s now cheap and easy to change banks, your broker will do the paperwork for you.
If you have questions regarding any type of loan, call Dan Goodridge on 04144 233 40. Our service is free of charge to you the borrower and we have access to all the major lenders in WA.
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Tax Newsletter December 2014/January 2015
Project DO IT nearing end, taxman focus on non-disclosure
The ATO has responded to fears expressed by some taxpayers that disclosing previously undeclared offshore income and assets could set them up for future tax investigations. The ATO has reassured taxpayers that disclosing under Project DO IT will not give them a “red flag”. ATO Deputy Commissioner Michael Cranston said the ATO was far more concerned with taxpayers who don’t disclose than those who do.
TIP: Project DO IT provides individuals with a last chance opportunity to declare their overseas assets and income to the ATO if they have not done so previously to avoid steep penalties and the risk of criminal prosecution for tax avoidance. As at 6 November 2014, some 1,000 individuals have made disclosures worth more than $190 million in income and over $1.1 billion in assets. The last day to come forward under Project DO IT is 19 December 2014.
Inbound tour operators to contact the ATO
The ATO has issued a statement on a Full Federal Court case in which the ATO Commissioner was successful in arguing that a supply made by an Australian inbound tour operator (ITO) to overseas customers was fully subject to GST.
Although the decision relates to specific facts, the ATO said the Commissioner remains of the view that the decision applies to all ITOs that:
- transact as principal (and not as an agent of a non-resident travel agent); and
- are engaged by non-resident travel agents to enter into contracts with Australian providers for the provision of products to non-resident tourists.
The ATO was of the view that, under the Court’s reasoning, the supplies made by the ITOs to their non-resident travel agent clients are properly characterised as supplies of promises to ensure products are provided, and the supplies are wholly taxable.
TIP: The Commissioner has requested that all ITOs that have transacted as principal and have an outstanding amount due to the ATO to contact the ATO within 28 days of the publication of the statement (ie by 10 December 2014) to discuss payment of the amount owed. ITOs that consider that they are not affected by the decision on the basis that they operate as an agent are also asked to contact the ATO within the 28-day period.
Tax win for retirement village operators
The ATO has issued a statement in response to a decision of the Administrative Appeals Tribunal (AAT) which ruled that a taxpayer that owns and manages a number of retirement villages was entitled to a deduction for payments it was contractually required to make to “outgoing residents”. The AAT concluded that such payments were properly characterised as an ordinary part of carrying on the business, and were not capital or of a capital nature and therefore deductible under the tax law.
TIP: The ATO said it will amend Taxation Ruling TR 2002/14 to reflect the Tribunal’s decision. It said the amendment will confirm that, where a retirement village operator makes a payment to an outgoing resident (or to their legal personal representative) that represents a share of any increase in the entry price payable by a new resident (ie the difference between the initial entry price paid by the outgoing resident and the entry price payable by the new resident), such payments will be deductible. In the meantime, the ATO said taxpayers may request that the Commissioner amend an assessment.
Crowdfunding could have GST implications, says ATO
The ATO has released information on its views on the GST treatment of crowdfunding. Crowdfunding involves using the internet and social media to raise funds for specific projects or particular business ventures. Typically the promoter of the project or venture will engage an intermediary to operate an online platform that allows the promoter to connect to potential funders. Various models are used to attract funding.
For example, in a “donation-based” model, where funders receive nothing apart from having their contribution to a project or business venture acknowledged by the promoter, the promoter will have no GST liability. However, the intermediary will be treated to have made a taxable supply of services to the promoter that is subject to GST. But in this case, the promoter will be entitled to a GST credit for the services he or she acquires from the intermediary.
Couple refused small business tax concession
The AAT has recently affirmed a decision of the Tax Commissioner refusing a couple’s request to apply a capital gains tax concession in relation to the sale of their business.
The husband and wife were the sole shareholders and directors of a private healthcare company which they had sold, via their shareholding, for some $14 million in the 2007 income year. They claimed they were entitled to the tax concession in respect of the capital gain they made on the sale of their shares. In particular, they claimed they satisfied that relevant asset test to be eligible for the concession on the basis that the company had a liability just before the sale to pay them eligible termination payments totalling some $2.75 million.
In rejection of the couple’s argument, the AAT confirmed that the eligible termination payments paid to the couple were not to be taken into account for the purposes of the relevant asset test in determining whether they qualified for the small business CGT concession. The couple have appealed to the Federal Court against the decision.
Employee share scheme reform on the way
The Government is reforming the taxation of employee share schemes to bolster entrepreneurship in Australia and support innovative start-up companies. It said the changes to the tax treatment of employee share schemes that were introduced by the former Government in 2009 have effectively brought to a halt the use of such schemes for start-up companies in Australia.
The Government said it would unwind those 2009 changes, beginning with reversing the changes made to the taxing point for options, to ensure that employees may opt to have “discounted” options taxed when they are exercised (ie converted to shares), rather than upon acquisition by the employee. This change would apply to employees of all companies.
The Government also announced that it will allow employee share scheme options or shares that are provided to employees at a small discount by eligible start-up companies not to be subject to upfront taxation, provided that the shares or options are held by the employees for at least three years.
Options issued to employees by eligible start-up companies under certain conditions will have the employee’s taxation events deferred until the sale of the shares. In addition, shares issued to employees by eligible start-up companies at a small discount will have those discounts exempted from tax for the employees.
The Government will also extend the maximum time for tax deferral on discounted options and shares issued to employees by eligible start-up companies from the current seven-year period by a further eight years – that is, a 15-year deferral period.
The Treasurer is expected to consult widely on the draft legislation. The legislation is proposed to come into effect from 1 July 2015.
Property Newsletter – November 2014
What happens when your interest-only period expires?
Property investors love interest-only loans, but most never stop to think about what happens when the interest-only period comes to end.
As you probably know, with an interest-only loan your repayments are lower than with an equivalent principal and interest loan, as you only pay the interest component and the fees.
In other words, while you’re only paying interest, you aren’t paying off any portion of the loan.
That’s why these loans are popular with property investors, as it allows them to put more cash into paying down non-deductible debt or into other assets.
Critically, interest-only loans generally allow you to ‘pay the minimum’ for a period of between five and 10 years. When this period expires, the loans automatically switch to a principal and interest loan with a corresponding increase in repayments.
The jump in repayments can catch many investors off-guard, particularly as repayments are calculated based on the remaining term of the loan.
For instance, if you took out a 30-year loan and paid only interest for the first 10 years, the repayments (once the loan switched) would be based on paying back the loan in just 20 years.
It’s worth noting that the adjusted repayments would be higher than if you had started paying principal and interest at the start of the loan.
What are your options when your lender notifies you that your interest-only period is expiring?
Firstly, you can do nothing and simply start paying off the loan. But if you don’t want to do this, you could ask your lender to extend the period. Some lenders will do this quickly and easily, others will require some sort of credit assessment or loan switching, and some just won’t do it at all.
When the market is competitive and lenders are hungry for business, you’ll find that most will try to keep their customers happy.
Another option is to refinance the loan with another lender, which, as well as providing a new interest-only period, could save you money.
As always it’s best to talk with your trusted broker before doing anything. They will be able to advise you accordingly.
Should property investors be worried about potential changes to lending rules?
The strength of the property market in our country’s two largest cities is giving the Reserve Bank of Australia (RBA) a bit of a headache.
Prices have risen strongly over the past year in Sydney and Melbourne, encouraged by low interest rates, and the central bank is concerned the housing market may be becoming overheated.
Specifically, the RBA is concerned about the unbalance in the market from a disproportionately high number of loans being approved to investors.
Property investors have been busy snapping up residential property in droves and the RBA believes that if commercial banks are participating in risky lending, then that could make the market vulnerable to a downturn.
The RBA clearly doesn’t want to lift interest rates because of the negative impact it will have on the country’s transitioning economy.
So instead, it is working with the Australian Prudential Regulation Authority (APRA) to consider various macroprudential policies that could potentially curb property investor mortgages.
The goal is to stop banks making ‘high-risk’ property investment loans that could fuel a housing market bubble and cause a subsequent crash.
We are expecting an announcement from the RBA by the end of the year.
What type of measures could be introduced?
There are a few likely candidates and some more ‘left-of-field’ options.
There could be a cap placed on loan-to-value (LVR) rations or debt-to-income ratios, though this seems unlikely.
The New Zealand model, where lenders can only provide a certain proportion of low LVR loans, also seems unlikely from comments made by the RBA.
Another option is to make lenders perform a strict ‘stress test’ to measure new investment borrowers’ capacity to absorb a significant increase in interest rates. Most lenders already perform this sort of test but regulation could set the bar higher.
Many people believe the likely option is that banks will be made to hold more capital for interest-only loans, essentially incentivising them to promote principal and interest loans. This would make interest-only loans more expensive and therefore less appealing in the market.
How could these measures (whatever they turn out to be) affect the everyday property investor?
Any restrictions to lending could obviously make it harder to get an investment loan or reduce a person’s borrowing capacity. It could also restrict some investors from expanding their portfolio beyond a certain point.
More broadly, lending restrictions could weigh on the property market and potentially trigger a downturn, but this is unlikely.
There are also potentially positive effects from such changes. These measures could do what they are supposed to do and take out the heat of any speculative markets, therefore helping to avoid a potential downturn.
Perhaps a less obvious benefit of new macroprudential policies is that interest rates could remain low for longer and may even drop further, especially if unemployment and the dollar remain stubbornly high.
When the Sydney and Melbourne markets slow down, housing will probably take a back seat as the RBA tries to facilitate the rebalancing of the economy away from mining investment, and I wouldn’t be surprised if this meant a cut to the cash rate.
Conclusion
My belief is that new macroprudential policies would only target a small portion of the market and focus on short-term measures, which shouldn’t disrupt the market overall. The RBA won’t want to severely damage the investor market, just correct the imbalances. And the measures probably won’t be as strict as some people are suggesting.
There is also the remote possibility that all the RBA’s talk about macroprudential policies could simply be ‘jawboning’ to help talk down the market without having to regulate.
While some investors may panic and try to load up on debt while they can, that probably wouldn’t be wise. If and when measures are introduced, clever finance brokers should still be able to find solutions for investors who genuinely have the capacity to carry a loan.
Is the Brisbane market ready to take off?
Sydney and Melbourne have clearly been the stand-out cities in terms of capital growth over the past year.
For investors around the country and overseas, attention has now turned to finding the next Australian city ready to boom, and there’s more than one expert tipping Brisbane to take the mantle.
Although the Brisbane property market has been in the doldrums for some time, following the Global Financial Crisis and vast flooding in 2010 and 2011, the key indicators are certainly pointing to an emerging growth phase.
Auction volumes are increasing, more sales occurring, the average time on market is shortening, vacancy rates are relatively low and there appears to be growing interest from interstate investors.
Research house, BIS Shrapnel, forecasts growth of 17% over the next three years and there are already signs of growth with the median house price on an upward trend.
What’s driving the growth? Low-interest rates are one factor but given that rates have been low for some time it’s probably more a case that confidence is now re-emerging.
With expectations of growth, many more buyers are deciding to upgrade while there is still value in the market.
Local buyers are being joined by those from interstate, who either made money in Sydney or Melbourne or missed out on the recent upswing and are searching for higher yields and growth potential.
Historically, Brisbane has always lagged behind Sydney by about 12 to 18 months.
Brisbane continues to record rapid population growth and the city has its own supply-constraint issues, which are fundamentally driving the market.
The economy has always been strong and there is currently considerable infrastructure spending underway, adding more fuel to the fire.
All of this is adding up to a positive outlook for the property market over the short-term. There is, however, plenty of development activity happening in the city, especially with regard to apartments, so there is the potential for an oversupply and poor performance in some areas.
Investors looking to get into the Brisbane market – especially those from interstate – should certainly tread carefully and seek expert help from a professional they trust.
Momentum Wealth named in Fast 100
Momentum Wealth is delighted to have been recognised as one of Australia’s fastest-growing companies in 2014.
Momentum Wealth was named in BRW’s Fast 100 list, which recognises Australia’s top growth companies, both public and private, for the year.
The achievement caps off a great year for Momentum Wealth after winning a swag of industry awards for outstanding customer service and excellence in business.
These include REIWA’s 2014 Best Large Residential Agency of the Year award, the 2014 Business News Rising Stars award & People’s Choice award and the award for Best Independent Office of the Year at the 2014 Better Business Awards.
Following on from these successes, we’d like to thank our clients for their ongoing support and helping us to win these highly-regarded awards.
9 simple things you can do to get tenants to pay more
When the rental market stagnates, investors have to turn to innovative solutions to secure higher rents.
Rather than just sitting and waiting for the market gods to shine, why not make simple improvements to your properties that will have tenants happily throwing extra money in your direction.
The right sort of improvements can easily pay for themselves in a couple of years through depreciation, increased rent and fewer vacancies.
Here are nine relatively simple things you can do to your property that tenants will love and happily pay a bit extra for.
Install air-conditioning This is always high on the list for tenants in Perth and other sunny places, especially when summer is approaching.
Add a dishwasher Nobody likes doing the dishes, so tenants will often pay a bit more for the convenience of a dishwasher.
Give the car a home Most people greatly value their cars, so providing a simple shade sail or carport structure can make your property more valuable in the eyes of potential tenants.
Provide a bit of extra security Every rental property must have certain security features like door and window locks, but providing extra things like sensor lighting and security screens can help increase the rent you can charge.
Allow pets Given how many people own, or want to own, a pet, opening your rental property to pet owners can help increase your returns by widening your pool of potential tenants.
Do a quick paint job While not as easy as some of the other items on this list, a new paint job can do wonders for the appeal of a property and even increase its value.
Tart up the outdoors Tenants tend to value useable and attractive outdoor space, so if you can create some without too much trouble it can pay off financially.
Install new carpets There’s something about new carpets that tenants just love. Maybe it’s the smell of virgin ground. Whatever the reason, tenants will often pay for the privilege.
Offer a long-term lease This is something you may not have thought about, but some tenants would gladly pay a bit extra for the security of a long-term lease. It can be very costly to have to move every couple of years.
Speak with your property manager who can provide the best advice about how to maximise your rental returns in the current market conditions.
Proposed changes to R-Codes could spell disaster for some investors
A few months back, the Western Australian Planning Commission (WAPC) put forward a series of amendments to the residential planning codes (R-Codes) that, in effect, will significantly reduce the development potential of many properties in areas zoned R30 and R35.
The proposed changes will reduce the number of multiple dwellings currently allowed in R30 and R35 zoned areas throughout the state.
If approved by the State Government, the proposed amendment, which will affect thousands of property owners, will undermine progressive changes that cater for WA’s rapidly growing population.
Changes implemented in 2010 created the potential to build seven to 10 units on 1,000 square metre blocks, which are zoned R30. However, if proposed WAPC R-Code changes are approved, blocks of this size in R30-zoned areas will only be able to accommodate three units.
The downgrade, which will ultimately lead to a reduction in property values, will affect properties in inner city locations, as well as properties zoned R30 and R35 in many areas which are more than 15 kilometres out of the city, and regional locations.
Increasing density to cater for a growing and ageing population is a sensitive issue that needs to be well thought-out and carefully managed. No one is suggesting that medium or high density should be in every street and every suburb.
Encouraging quality designs and appropriate location choices are essential components of planning for our future housing needs. For example, a quality design can deliver a seven or 10-unit development that is smaller in terms of building size than an equivalent three-townhouse development.
However, if Perth is going to accommodate a rapidly growing population, which increasingly wants to live near work and amenities, and we want to reduce congestion on our roads, we simply can’t afford the urban sprawl to continue indefinitely.
All property owners are encouraged to express their opposition to the amendments. Submissions or comments on the amendment may be emailed to rcodesreview@planning.wa.gov.au. Submissions close 5pm, Friday 14 November 2014.
Popular suburb that is minutes to anywhere
Despite its central location, 11km from the Perth CBD and 5km from Fremantle, Melville is a relatively quiet residential suburb, with good access to major hubs, the river and the beach.
Its neighbours are the riverside suburbs of Bicton and Attadale to the north, Alfred Cove and Myaree to the east and Willagee to the south.
Residents of Melville have plenty of retail options with Melville Plaza, a good-sized local shopping centre, located on the suburb’s border. The popular Garden City is also just five minutes away. The same can be said for cafes and restaurants with popular strips nearby in Ardross and Fremantle.
There are a number of parks and open spaces in Melville, including Kadidjiny Park, which cost nearly $10 million to develop, and opened to the public in late 2010 offering a playground, barbecues and large amphitheatre.
The suburb has a primary school and an independent public high school, though many children from the area attend one of the nearby private schools.
Melville has numerous bus routes linking residents to key employment and lifestyle centres, as well as to train stations on the Mandurah line. It also has good access to Canning and Leach Highways, which bound the suburb to the north and south respectively.
Most development occurred in the 1950s, so houses in Melville typically sit on large blocks. However, many original homes have been knocked down and replaced with modern ones. There are very few units and villas in the area.
The median sales price for houses in Melville currently sits at around $815,000, and the suburb can sometimes be found on the list of fastest-selling or most-searched-for suburbs in Perth.
RBA leaves rates unchanged
The Reserve Bank of Australia (RBA) has kept interest rates on hold at 2.5% following its November meeting.
Announcing that rates would not be changed, RBA governor Glenn Stevens said that most data in Australia was consistent with moderate growth in the economy.
“Overall, the bank still expects growth to be a little below trend for the next several quarters,” Mr Stevens said.
The decision to leave rates on hold was widely expected from most economists.
Mr Stevens said that credit growth was moderate overall, but there had been a further pick up in lending to property investors, and that dwelling prices had continued to rise.
Furthermore, he noted that interest rates were very low and had continued to edge lower over the past year as competition to lend had increased.
Mr Stevens said some forward indicators had showed that employment had been firming throughout the year, however the labour market had a “degree of spare capacity” and that it would probably be some time yet before unemployment declines consistently.
He reiterated that resource sector spending was declining as some areas of private demand were expanding, albeit at varying rates, and public spending would remain subdued.
“On present indications, the most prudent course is likely to be a period of stability in interest rates,” Mr Stevens said, noting that inflation was running between 2% to 3%, as expected.
Finance Newsletter – November 2014
Do you have the most suitable loan for your circumstances?
Do you have the best rate available?
If your interest rate is over 4.72% variable then you may be able to save thousands per year by changing loans and or banks. AFG home loans is currently offering customers 4.72% variable for home / investment loans. No application fee and no ongoing monthly or annual fees. Loans from $150 000. Conditions apply. And Citibank is offering 4.69% variable for loans under 80% LVR and balances over $500 000. Conditions apply. So if you are interested in saving thousands per year call Mercia finance to see if we can show you how benefit from a better rate.
If you have questions regarding any type of loan, call Dan Goodridge on 04144 233 40. Our service is free of charge to you the borrower and we have access to all the major lenders in WA.
Tax Newsletter – November 2014
Offshore income tax “amnesty” nearing its end
The deadline to take advantage of the ATO’s initiative to allow eligible taxpayers to come forward and voluntarily disclose unreported foreign income and assets with reduced penalties is nearing. The ATO has urged taxpayers with offshore assets to declare their interests ahead of a global crackdown on people using international tax havens.
The Tax Commissioner Chris Jordan earlier this year announced the initiative to allow eligible taxpayers to come forward and voluntarily disclose unreported foreign income and assets. In announcing the initiative, known as “Project DO IT: disclose offshore income today”, the Commissioner warned that it provides a last chance opportunity for those who haven’t declared their overseas assets and income, to come back into the tax system before 19 December 2014, to avoid steep penalties and the risk of criminal prosecution for tax avoidance.
TIP: It should be emphasised that Project DO IT covers both “inadvertent” and “intentional” actions to hide offshore income and/or gains. The ATO has advised that where taxpayers may be unsure as to their eligibility for the initiative, they can contact the ATO’s Project DO IT team to discuss the issue and this can be done anonymously. Please contact our office for further information.
Subsidy to encourage employers to hire mature workers
The mature age worker tax offset will be abolished by the Government from the 2014–2015 income year and later income years. However, a new expenditure program being delivered by the Department of Employment, Restart, will provide alternative support by way of subsidy of up to $10,000 to employers who hire mature age job seekers.
The Restart program offers a wage subsidy of up to $10,000 (including GST) to eligible employers of mature age job seekers. The job seekers must be 50 years of age or older, and have been unemployed and receiving income support for six months or more. To receive the full payment, a business must employ the same employee for at least 30 hours per week for an ongoing period of two years. The Restart wage subsidy can also be claimed on a pro-rata basis if you hire a mature age worker part time, for at least 15 hours a week.
Doctor obtains tax relief for olive-growing activities
A medical practitioner has been, in the main, successful before the Administrative Appeals Tribunal (AAT) in seeking to have losses from his olive growing activities deducted from his other assessable income. The taxpayer had carried on an olive growing and olive oil production business for 15 years.
The taxpayer had applied to the Tax Commissioner to be relieved from the “non-commercial loss provisions” under the tax law for the 2010 to 2014 income years, inclusive. Under those rules, unless he is granted relief, he has to wait until the olive oil business starts to generate profits before he can claim his losses. The Commissioner refused the taxpayer’s application.
The AAT held the Commissioner’s decision not to allow the taxpayer immediate access to his losses was not the correct or preferable decision. The AAT decided the taxpayer should be allowed the relief from the “non-commercial loss provisions” under the tax law for the 2010 to 2013 income years, but not the 2014 income year.
The AAT also made several recommendations to the Commissioner as a result of issues raised during the proceedings. These were that the Commissioner:
- considers the use of an alternative approved form for applications of this nature;
- ensures, as far as possible, that any alternative approved form:
- asks applicants to provide all the information the Commissioner considers necessary for a proper consideration of the application; and
- takes into account the legislative amendments enacted in 2009 (ie the income requirement which means that taxpayers with taxable income over $250,000 have to rely on the Commissioner’s discretion).
- provides additional guidance to the Commissioner’s officers.
Tax claims for R&D costs mostly allowed
The AAT has mostly allowed a company’s deduction claims for research and development (R&D) expenditure at the 125% premium rate, but disallowed other claims in respect of overlapping expenditure.
Over an extended period, the taxpayer conducted various plant trials to test possible ways to improve its copper and lead concentrators and its copper smelter. The taxpayer sought to deduct a considerable part of its expenditure incurred during those plant trials at the premium rate of 125% as “research and development expenditure”.
The Commissioner refused most of the taxpayer’s claims arguing they were not deductible at the premium rate because they were “feedstock expenditure”, which is expressly excluded from the statutory definition of “research and development expenditure” under the tax law. The Commissioner also argued that, due to an overlap of the taxpayer’s R&D activities at its Mt Isa copper concentrator and Mt Isa smelter, certain expenditure became “feedstock expenditure” and was not deductible at the 125% rate.
The AAT allowed most of the taxpayer’s claims, but accepted the Commissioner’s arguments on the overlap issue.
The Commissioner has appealed to the Federal Court against the decision.
Compensation for providing domestic help taxable
The AATl has affirmed a decision of the Commissioner that a payment made to an individual for compensation for domestic assistance was assessable as ordinary income under the tax law.
In 1997, the taxpayer’s husband suffered a serious injury while white-water rafting during a team-building exercise organised by his employer. The husband was unable to work and the taxpayer gave up full time work to become a carer.
In 2012, the husband lodged a claim for compensation for domestic assistance under the Workers Compensation Act 1987 (NSW) in respect of the domestic assistance provided by the taxpayer. The Workers Compensation Commission awarded the taxpayer a lump sum of around $179,000.
The AAT said there was no basis that the compensation payment could be described as a loss of income earning capacity as argued by the taxpayer – rather, it was of the view that the payment was to ensure that the taxpayer was provided with a sufficient payment to cover her loss of income.
Perfecting a security interest over corporate property
A security interest in corporate property must be registered on the Personal Property Securities Register (PPSR) as soon as possible.
A recent Federal Court decision involving a loan from a self-managed super fund (SMSF) to a company which was later placed into voluntary administration has highlighted the importance of understanding the new Personal Property Securities regime. The Federal Court held the SMSF trustee was merely an unsecured creditor in relation to the commercial loan to the company after finding that its security interest had not been registered on the PPSR in time to avoid the interest vesting in the company (in liquidation).
TIP: The take-home message from the case is that a failure to register a security interest on the PPSR within 20 business days of the creation of a security agreement over corporate property leaves the lender/mortgagor in the hands of the gods in terms of later perfecting the security. For corporate property, a failure to register within 20 business days means that the security interest must have been registered at least six months before the administration or winding up of the grantor company.