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NEWS - TAX LAW
Salary sacrifice is all the rage
The May federal budget provided a simple, entirely legitimate way for some people to cut their personal tax by more than $32,000. Yet the government has no idea how many people are taking advantage of this generous option, let alone the cost to future budgets.
ATO slugs lawyers and accountants
Accountants, lawyers and other professionals could lose millions of dollars in tax breaks following a crackdown on a trust structure widely used to shift partnership profits to family members.
How to give yourself a tax cut
You can bet last year's tax cut, if you still have it, that there won't be another one in this budget. But it's not all bad news. There's still the sequel, starting on July 1, to the last budget that raised the income bar for the 30, 42 and 47per cent tax brackets.
Tripped up by complications
Capital gains tax concessions which critics say are not working for small business are tripped up by complications
ATO allows super in lieu of salary
Spouses in personal services businesses will be allowed to use superannuation to split income in limited circumstances, the Australian Taxation Office has said.
Planning to take advantage of CGT concession
A recent superannuation decision from the Australian Taxation Office has highlighted how trustees of self-managed super funds can benefit if they are on the ball regarding the investment opportunities available to them.
Landmark decision awards luxury tax break
There might be a few more "serious business occasions" in resort destinations like Hawaii and Hamilton Island after a Federal Court decision yesterday.
Directors win reprieve from Tax Office scrutiny
The Australian Taxation Office has yielded to pressure from big business and tax advisers over its controversial plan to make directors sign off on tax-planning strategies, and will now put restrictions on when board documents can be seized by ATO auditors.
Tax changes make for a bumpy ride
The new tax rates that are now in force have knocked a dent in the tax effectiveness of car leases packaged in salaries, which are an integral part of the art of fleet management.
Tax blitz on undeclared income
The Australian Taxation Office has begun a crackdown on undeclared dividend and interest income after an audit revealed about 2.7million taxpayers under-reported their interest income by more than $700million last year.
Tax on foreign profit dumped
Australian companies will be able to repatriate foreign profits free of Australian tax after major reforms were passed by parliament on Wednesday.
Tax Office ruling to hit home lenders
Financial services companies face new charges that will increase the cost of some products, including leases and mortgages, after unexpected changes to a long-awaited GST ruling.
High Court rules against split home/investment loans
Splitting home loans to claim big tax deductions on investment properties was an illegal tax dodge, the High Court has found.
ATO targets property tax breaks
The Australian Taxation Office is launching a crackdown on one of the most lucrative tax breaks for investors by tightening the depreciation rules on residential investment property.
Tax slug lurks for property investors
Thousands of property investors are really speculators and may not qualify for tax concessions on profits from the property boom.
New tax rules could hit expats
Expatriates working in Australia could be caught out by new tax rules that could result in their offshore assets being subject to Australian tax.
How to pay less tax by income splitting
Truckies, haidressers and milk bar owners do it. So can retirees, radiologists and partners in large legal or accounting firms. But a GP in sole practice can't and neither can entertainers or employees.
How to survive a tax audit
The Australian Taxation Office has been promising an audit blitz for months and Sydney tax barrister Michael Inglis is ready. A procession of panicky taxpayers and their advisers may soon be making their way to his chambers, seeking advice on how to come clean to the taxman.
Taxing times for small business
Tax, tax, tax. It's not hard to get the message that small to medium-sized businesses are not happy with the so-called taxation reform program.
Accountants in a spin on consolidation
The new tax consolidations regime is proving so complex for accountants servicing the small to medium enterprise end of the market that they are refusing to undertake the work.
Advisers take tax changes on trust
Treasurer Peter Costello recently released the long-awaited details of changes to close a loophole in the taxation of trusts, just days before June 30 distributions are finalised.
How tax changes affect withdrawals
Allocated pensions are the most popular retirement income arrangements paid from self-managed super funds. One reason for this is the ability to withdraw lump sums from the pension account should extra money beyond the regular income be needed.
Tax consolidations clock is ticking
Small to medium enterprises with wholly owned subsidiaries must start making decisions soon about whether to embrace or reject the new concept of tax consolidations.
Tax ruling on capital-protected loans
The federal government has clarified the tax breaks available to investors in instalment warrants, protected equity loans and similar products.
How child care looks after employers too
The stranglehold imposed by fringe benefits tax on salary sacrificing appears to have narrowed the field in terms of items that can be included in your package, but there is one area that is growing - packaging the cost of work-based child care.
Tax ruling lets developers off GST hook
The Australian Taxation Office has relaxed its aggressive approach to the valuations used by the property development industry in calculating the GST liability on sales.
Tax rule changes for capital protected loans
Federal Treasurer Peter Costello has thrown the end-of-year tax planning of many Australians into chaos by announcing a change that will reduce the tax benefits of many popular investments.
Start planning for tax changes
Small to medium enterprises face tax planning confusion, increased paperwork and higher taxes because of changes to the Income Tax Assessment Act.
Franking credits: to take or not to take
Selling a business can be a long and complicated process, at the best of times. When the issue of what to do with accumulated franking credits is added to the equation, the complexity of the sale process increases considerably.
Tax tricks with extra bite
Understanding your obligations to the various business taxes and planning for them is one way to improve your cash flow and generate greater after-tax profits for the owners.
Tax ruling threatens property outlook
Property investors have been given a harsh warning after a Queensland investment unit owner lost a dispute with the Australian Taxation Office over common depreciation claims.
ATO bans super investment scheme
One of the fastest growing products used by self-managed superannuation funds was yesterday declared illegal, significantly increasing scrutiny of the $1 billion sector of the industry.
Tax victory for venture capital
Venture capital investors are to receive substantial tax concessions that could increase the cash available for Australian companies.
CGT concessions to consider
Owners of small and medium-sized enterprises with assets up to $5 million who plan to sell their business in the next six to 12 months should be reviewing their ownership structure now to ensure they are eligible for capital gains tax concessions.
Firms set to push tax benefits
Financial institutions are likely to embark on aggressive marketing campaigns to sell protected equity loans following a High Court decision that prevents the Australian Taxation Office from limiting tax deductions on the products.
Tax Office closes GST exemption loopholes
The Australian Taxation Office is targeting commercial property deals, particularly those listed as exempt from the goods and services tax, in an attempt to close loopholes and uncover avoidance strategies.
Ruling dashes ATO hopes of seeing advisers' files
The Australian Taxation Office's ambition to override legal privilege and access the client files of corporate tax advisers were dashed by the High Court recently.
Demergers may be doubly taxing for staff
Employees may face hefty tax bills on their share options when companies demerge if a recent Australian Taxation Office ruling on the WMC option scheme is any guide.
Tax change aids restructures
Federal Parliament recently passed long-awaited business tax changes that could spark a wave of major corporate restructures.
Family trusts are back on track
When the Federal Government decided to shelve draft legislation for a new family trust regime you could almost hear the collective sigh of relief. But there is no guarantee regulators won't have another go at them.
Tax breaks for venture capitalists
The Federal Government will honour one of its main election commitments to the business community by providing new venture capital tax breaks for foreign investment.
Tax law leaves breeders at a loss
A new tax law covering the immediate deductibility of business tax losses could have a dramatic and unforeseen impact on breeders, particularly those just starting up and buying broodmares.
Capital gains tax change lauded
The long sought after Capital Gains Tax relief for company restructures that came into effect on July 1 paves the way for the much needed restructuring of many privately owned businesses.
Tax changes pose threat to new car, fleet sales
Car makers have suffered an unexpected blow with an Australian Taxation Office decision to change the depreciation rules on new vehicles, which could hurt new car and fleet sales.
Reforms in consolidation offer benefits
Almost anyone with two or more companies that have different tax positions can benefit from the new consolidation rules.
SME's review may cut their tax bill
A few hours of planning and review could take thousands of dollars off a small business's year-end tax bill.
Business wins tax breaks on debt
Companies have won unexpected tax relief in a critical ruling by the Australian Taxation Office just days before the start of new rules restricting excessive use of debt.
BAS basics: avoid the pitfalls
As this financial year draws to a close, it also marks a change in pace by the Australian Taxation Office, which has shifted from educating businesses about the country's newest tax to ensuring that they pay what the law requires.
Tax planning options
As we approach the end of the current financial year, many people are interested in last-minute tax strategies, here is a brief outline of the major arrangements available and what they broadly offer:
Tax breaks to apply on spin-offs
The Federal Government has cleared the way for a wave of corporate restructuring with new rules that exempt shareholders from capital gains tax when companies are broken up.
Tax decision allows loan deductions
The Australian Taxation Office has suffered a major legal defeat after the Federal Court upheld $1.2 million in interest deductions claimed by a share investor.
Offshore tax rule hits pilots
Australians working overseas will find it increasingly difficult to escape Australian income tax following a new tax ruling.
New R&D tax concessions
Business has won a long-running campaign for more generous research and development tax concessions, after the Federal Government backed down on key changes in order to secure legislative backing.
ATO rules on website write-offs
The Australian Taxation Office has significantly relaxed its stance on tax deductions for website development in a long-awaited final ruling issued late on Wednesday 25/07/01.
ATO cuts rate on penalties
About 40,000 investors in mass marketed schemes would be eligible for a reduced penalty interest rate on their tax debt because they had entered into the schemes unwittingly, the Australian Taxation Office said recently.
Prohibition of alienation of personal services income
The new law prohibiting alienation of personal services income has the goal of trying to clamp down on tax avoidance, but it is coming under widespread attack because of the number of unintended consequences.
New tax year brings more major changes
While business remains confused about key aspects of the GST, it faces the daunting prospect of dealing with more major tax changes from the start of the new financial year.
New depreciation laws: simplified or not?
The common gripe about depreciation is the plethora of different rules, rates and asset bands. Have the new laws been simplified or have we just been squeezed?
New tax rules for rental properties
Owning an investment property is a whole new tax ball game. For starters, once you have an investment property you will need to register for an Australian business number.
New tax law requires company caution
Delays in developing new tax-avoidance laws have confused corporations and forced more conservative tax accounting behaviour, tax experts have warned.
Business wins R&D tax battle
Big business has won a long-running battle with the Australian Taxation Office over a crucial research and development issue, after the Federal Government agreed to retrospective legislation to ensure companies can claim for past expenditure.
New categories simplify life for investment income earners
A large number of disaffected self-funded retirees, residential property investors, owners of shares and those receiving royalty incomes, have been dispersed into three widely separate categories to ease a compliance burden which threatened to swamp accountants and tax return specialists.
BAS changes for Business
The Federal Government has announced that it will overhaul the GST compliance regime, bowing to widespread business and investor anger over the compliance associated with the quarterly BAS.
ATO is still working on property ruling
The Australian Taxation Office's delay in clarifying what constitutes a "going concern" is causing confusion among people looking to buy and sell businesses.
Nationals force trusts tax plan change
The federal government is reworking plans to tax trusts as companies after urgent talks between the Prime Minister and the leader of the National Party, Mr John Anderson, over the political and bugetary impact of the controversial proposal.
Queensland's century-old act rewritten
Queensland's oldest tax laws have been overhauled to make them more relevent to the 21st century, Treasurer Mr David Hamill said recently, as he unveiled the rewritten 106-year-old Stamp Act 1894.
Tax office tips to stem BAS errors
The ATO has issued a number of tips in a bid to stem the number of errors on the BAS form.
Tax changes a blow to DIY super
Recent changes to tax laws introduced into Parliament under the Taxation Laws Amendment (Superanuation Contributions) Bill 2000, could mean that overseas transfers will trigger a large tax bill for executives with personal superanuation funds.
Tax break for farmers
The Australian Tax Office has confirmed that up to $1.7 billion in payments made annually by AWB Ltd at harvest time will be treated as loans, not taxable income.
Corporate tax scheme some time off
The Federal Government's mooted new corporate Tax Value Method bill is expected to require at least 3 more years of work.
Loophole closed on employee benefit schemes
The Federal Government has introduced legislative amendments to outlaw the controversial employee benefit tax scheme.
ATO takes tough stance on BAS
The Australian Taxation Office has taken a tough stance on small businesses who incorrectly elected to lodge monthly Business Activity Statements.
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