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Early Monday Ramblings – A New FBT Exemption

In Division 13 of Part III of the Fringe Benefits Tax Assessment Act 1986 are a series of FBT exemptions. From section 53 to section 58ZD are a very long list, 41 to be exact, of exemptions… but now there could be 42 exemptions as the Treasury has released draft legislation adding a new exemption. […]

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Monday Ramblings – When does a company carry on a business?

When does a company carry on a business? This is an important question, primarily for the small business entity concessions which require the entity to be carrying on a business.  In Taxation Ruling TR 2019/1 Income tax: when does a company carry on a business? the Commissioner answers this question. But only for companies. But […]

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Dodgy Taxpayers

Let me share with you two stories of dodgy taxpayers… Cop couple caught and convicted In their 2017 and 2018 income tax returns, they claimed refunds totalling $28,483 and $17,851. They ignored system-generated warnings due to the size of the WRE deductions, lodged their returns and got audited. To prove their claims, they provided a […]

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Concessional Contribution Cap to $27,500

We knew it was coming due to RBA rates, but finally the Commissioner has indexed the Contribution caps for super… And the three year rolling contributions goes to $330,000 on 1 July 2021 as well.

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Monday Rambling (its Easter so I am early) – GST, the Margin Scheme & Property development in the ACT

The Commissioner has ended the 10 year discussion on how the margin scheme works for major developments in the ACT. Many developers have received large GST refund in the past but these won’t be happening going forward. However, while the Commissioner states his new Determination, GST Determination GSTD 2021/1, is retrospective he states that  developers with […]

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Worth an argument??? Maybe not…

In the case Cross and Tax Practitioners Board [2021] AATA 441, the Commissioner wrote to the Tax Practitioner Board, saying that a tax agent had lodged 125 SMSF annual reports, each saying the fund had been audited by a specific auditor on a certain date, when no such audit had occurred. The best part is […]

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Monday Ramblings – Personal Service Businesses and Part IVA

In addition to the Commissioner’s new draft guideline on Allocation of professional firm profits that I have “blogged” on before, he has also released a Draft Taxation Ruling covering the operation of the personal services income. It is in Draft Taxation Ruling TR 2021/D2 Income tax: personal services income and personal services businesses He had previous […]

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Monday Ramblings – Debt Forgiveness again – but with UPEs

Last week I wrote about claiming a capital loss for forgiving a debt. The follow up question is always about an unpaid present entitlement.  As the beneficiary has included the UPE in their assessable income it seems like the conditions for a bad debt deduction under section 25-35 have been met. But the Commissioner has […]

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Penalised for being ethical – JobKeeper voluntary repayments

The Commissioner has just thrown a spanner at the brilliant marketing people who think every business should repay their JobKeeper payment as their businesses continued to thrive… Even if you give it back, the Commissioner will tax you on it and may not give you a deduction. Let that sink in. You get $100k in […]

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Monday Ramblings – Can I get a CGT loss when I forgive a debt?

I know this is the second question I get asked – the first is can I get a revenue deduction which is “NO… COME ON MAN!” unless you are a money lender (section 8-1) or the debt has been treated as income and this is a bad debt (section 25-35) – but this is the […]