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Allocation of professional firm profits – Important new guideline

Finally the Commissioner answered the question of how much of the profits of a professional firm that we can allocate to entities other than the owner of the firm. Background In 2015 the Commissioner released a document called “Assessing the risk: allocation of profits within professional firms guidelines”. This allowed us to send 50% of the […]

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Monday Ramblings… What is the Imputation Rate?

To work out the Company Tax Rate we need to know the aggregated turnover for the entire year and the base rate passive income for the entire year – See a rambling of mine a month a go called “Sunday Ramblings – Company Tax Rates are Messy”… However, Companies can pay franked dividends to their […]

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Monday Ramblings – More on Travel and accomodation deductions

Travel and accommodation costs #5 – Can I claim a deduction for my food while traveling Draft Taxation Ruling TR 2021/D1 Income tax and fringe benefits tax: employees: accommodation and food and drink expenses, travel allowances, and living-away-from-home allowances To be able to claim a deduction for food while travelling, you first need stays away […]

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Travel and accommodation costs #4 – Transport expenses when travelling significant distances or multiple offices

Here in Canberra we have lots of people who love living in Canberra, but work in Sydney. They drive up, stay there two or three days and drive back… and they ALWAYS want to claim a deduction or the travel. What does the Commissioner say about this???? The mere fact that an employee lives a […]

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Travel and accommodation costs #3 – On call and standby arrangements

In Taxation Ruling TR 2021/1 Income tax: when are deductions allowed for employees’ transport expenses? the Commissioner considers deductions for those on call or on standby. This may not be the most relevant of all the issues in this Ruling but as I seem to disappoint lots of people when I have advised on these issues, so […]

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Travel and accommodation costs #2 – Travel from home to work

We always start with the position that travel between home and work is not deductible… And then the arguments begin. So, to end these arguments, the Commissioner states in TR 2021/1 Income tax: when are deductions allowed for employees’ transport expenses? that the usual position that the cost of travel between home and the employee’s regular place […]

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Travel and accommodation costs – The Commissioner’s opinions

The Commissioner has released 3 documents covering the income tax and FBT issues that arise from travel and accommodation costs. These three documents are: TR 2021/D1 Income tax and fringe benefits tax: employees: accommodation and food and drink expenses, travel allowances, and living-away-from-home allowances TR 2021/1 Income tax: when are deductions allowed for employees’ transport […]

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The worst attempt ever at getting a tax debt forgiven due to serious hardship

A surgeon who did not pay taxes (either GST or income taxes) for 6 years found that he owed $1.2 million when the Commissioner caught up with him. He argued at the AAT that he should be released from his tax debt as he would suffer serious hardship if he was required to satisfy the […]

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Friday Ramblings – Single Touch Payroll again – this time its STP & “closely held (related) payees”

Let’s start with that fact that if you have any arm’s length employees in addition to your related employees, they must be reported on or before each payday under the normal STP rules. And let’s confirm that up to 30 June 2021 employers with 19 or fewer employees are exempt from reporting closely held payees […]

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I hate Single Touch Payroll for not for profit organisations…

Here is the letter I wrote today to the Treasurer explaining why… Dear Minister, On 6 February the Commissioner of Taxation announced that, starting 1 July 2021, not-for-profit clubs or associations (for example, school parent associations or local sporting clubs) will need to report under single touch payroll per pay event rather than quarterly. Many of […]