Monthly Archives: December 2013

A quick lesson in statutory interpretation from the Commissioner…

I can’t believe I just wrote this heading given I just won an AAT case (they conceded) that trust beneficiaries are taxed on present entitlements and not payment… I am not kidding, they denied interest deductions for a year as … Continue reading

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Announced but unenacted… a bit of clarity

In November the government announced (see http://axs.ministers.treasury.gov.au/media-release/003-2013/) it was not going ahead with caping self education deduction (limiting section 8-1 makes no sense), limiting the tax exemption on super pensions (impossible to calculate), removing section 25-90 (let the big end … Continue reading

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Federal Court v High Court… Battle lines drawn

I was going to write a blog on the tax High Court decisions in 2013, but I started to notice a trend, and a worrying trend at that. In the Unit Trend case the High CourtĀ overturnedĀ a Federal Court decision that … Continue reading

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At least he is honest how he bought the kabab business

UPE kebabs – paid for by a 30% tax rate using Unpaid Present Entitlements

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Injecting income into loss trusts – everyone should be doing it

There is this fear of having losses in discretionary trusts – specifically how do you get them out… The answer is easy. You just inject income into the trust. But what about the income injection test I hear you scream… … Continue reading

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Net Medical Expense Offset Gone… kind of

The Government has released some draft legislation and explanatory materials to phase-out the net medical expenses tax offset (http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2013/phase-out-net-medical-expenses). I love the way they call it a phase out when the vast majority of people lost all eligibility on 1 … Continue reading

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Another go at closing salary packaged cars

One of the arguments presented by the salary packaging companies (please note these are companies that only exist due to the combination of a tax loophole and tricky marketing – https://taxrambling.wordpress.com/2013/11/29/the-post-the-salary-packagers-do-not-wanted-you-to-see/) is that removing the statutory method for calculating car … Continue reading

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