Div 7A & Family Law settlements – ATO does a back-flip (with pike)

In a draft Taxation Ruling (TR 2013/D6) issued yesterday (13 November 2013), the ATO reversed what was previously a favourable view to taxpayers regarding Family Court-ordered cash payments made by family companies to non-shareholder spouses in matrimonial proceedings. Previously, the ATO has taken the view that if, in matrimonial proceedings, the Family Court ordered a […]

Capital Gains Tax – timing can be everything

Different CGT events can have different timing points. Failing to recognise the correct CGT event for a transaction or misunderstanding the timing point for the applicable CGT event can have disastrous consequences. Healey’s case In the recent case of Healey v Commissioner of Taxation [2102] FCAFC 194, shares were purchased by the trustee of a […]

Employment basics

  It is surprising how often in our practice we come across employers who are unaware of some of the basic legal requirements that have to be met when engaging new employees.   We are talking about employers understanding the fundamentaland minimum statutory obligations that they have and must adhere to when engaging new employees. These […]

Protective trusts & special disability trusts

In Will preparation and estate planning generally, particular consideration should be given to the possible establishment of protective trusts and Special Disability Trusts (SDTs) for any family members who are vulnerable because of, e.g: serious/significant physical disabilities; mental illness; gambling, alcohol or drug addition; spendthrift tendencies. If a potential beneficiary does have a serious disability, […]

Directors’ Penalties – ATO on the warpath

You may have seen the article in the Australian Financial Review today (24 April 2013) warning directors that the Tax Office is now pursuing an aggressive policy of sending penalty notices to directors making them personally liable for their company’s unpaid PAYG and superannuation.  The article alerts readers to the fact that since 30 June […]

Binding Death Benefit Nominations for your super fund – what you need to know

Unless the super fund entitlements arising on your death (Death Benefits) are properly dealt with, your Will cannot direct to whom those Death Benefits will pass. Usually the super fund deed gives the trustee a broad discretion as to how a member’s entitlements can be dealt with on that member’s death. However the trustee’s view […]

Trustee Resolutions

This paper looks at drafting resolutions for income and capital gains distributions by discretionary trust trustees following the introduction of the Tax Laws Amendment (2011 Measures No.5) Act 2011 (TLAA5) and pending the proposed “rewrite” of the trust tax provisions due on 1 July 2014. It provides a fairly detailed background history explanation to the introduction […]

Getting money out of SME companies

Getting money out of SME companies requires not only an understanding of the basic principles of dividends, share buy-backs, reductions of capital and the winding up of companies, but also a detailed knowlege of the taxation consequences of what is intended. “Iritegrity provisions” such as those contained in Division 7A of the In ome Tax Assessment Act 1936 […]

Employee requests for flexible working arrangements

Employers may be aware from press reports of the announcement that was made in February 2013 by Bill Shorten, the Minister for Employment and Workplace Relations, of changes that the Gillard Government wants to make to the Fair Work Act to broaden the right of employees to request flexible working arrangements.   However, many employers may […]