Tax Archive

Small business restructure rollover relief means SME restructuring has become easier

The Tax Laws Amendment (Small Business Restructure Roll-over) Act 2016 received Royal Assent on 8 March 2016. As a result, from 1 July 2016 small business operators will have significantly greater options for reorganising the structure through which they operate their businesses, without causing adverse tax consequences. To obtain the new rollover benefits, It will be […]

Immediate tax deductibility for small business start-up costs

Royal Assent has now been given to the legislation which enacts the 2015 Budget small business concession allowing immediate and full tax deductibility for professional (including legal, accounting and valuation advice fees) and other capital costs of starting up a new small business. This is one of a number of small business concessions announced by […]

Philanthropic trusts for all

Philanthropic trusts for all Increasing numbers of clients are expressing interest in establishing some form of trust fund for philanthropic purposes – either during their lifetimes as part of a family project (e.g to commemorate a deceased family member) or by way of Will upon death.  Different options for achieving family philanthropic outcomes The tax […]

Division 7A – A new approach?

Consultation on the second round of the Board of Taxation’s review of Division 7A has now concluded and the Board is due to report to the Government in October of this year.  The Review Paper (titled Post Implementation Review of Division 7A of Part III of the Income Tax Assessment Act 1936) noted that none […]

Failure to lodge returns can land criminal conviction

We regularly have clients referred to us who are facing prosecution by the ATO for failure to lodge income tax returns or BASs, often for a number of years.  Many of those clients express to us their surprise that they face the possibility of receiving a criminal conviction for failure to lodge. Every accountant will […]

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 […]

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 […]

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 […]