Categories
Uncategorized

Monday Ramblings – Fringe benefits tax and car parking fringe benefits

Since 1996, the place to go to work out if an employer has to pay FBT on car spaces it owns or leases has been Taxation Ruling TR 96/26, titled “Fringe benefits tax: car parking fringe benefits”. Note: reimbursing someone who has used a third party car park is not a car parking fringe benefit […]

Categories
Uncategorized

Late Monday Rambling – A Budget

What do we have in this year’s Federal Budget for all our tax and super practitioners? First, we have the announcements that we are keeping what we already have for a bit longer… Retaining the low and middle income tax offset for the 2021-22 income year  The Government will retain the $1,080 low and middle […]

Categories
Uncategorized

Claiming internet and phone costs – finally a case

I have been waiting for a case like this for some time. In Spencer and Commissioner of Taxation [2021] AATA 1106, the taxpayer claimed all his home internet and all his phone costs (including buying the phone). His employer had given him a work phone and a tablet with a SIM card so he could […]

Categories
Uncategorized

Monday Rambling – A budget is coming

According to ATO data modelled by Deloitte Access Economics… This is just for personal income tax, and it is Access updating the ATO data from 2018. Just because it makes people angry, let me say that is you earn more than $180,000 you are in the top 3.4% of Australians (now for the excuses). But […]

Categories
Uncategorized

Jobkeeper Overpayments

Now that JobKeeper is over, the only concern I hear from practitioners is about the possibility of having to pay it back. Many of us estimated a projected loss well over 30% back in March 2020 but that loss never came and they wonder whether the Commissioner is going to come after this. Well, the […]

Categories
Uncategorized

Monday Ramblings – Granny Flats & CGT

To attempt to get people to formalise granny flat arrangement to give the elderly the rights they need the Treasury has released draft legislation to make an exemption from CGT. To avoid CGT on these granny flat arrangements, the Board of Tax indicated that people would not formalise granny flat arrangements, and this could lead […]

Categories
Uncategorized

New Zealand to remove interest deductions on second hand residential property

The New Zealand government has announced it will deny interest deductions on residential investment property acquired on or after 27 March 2021 starting from 1 October 2021, unless the residence is new or the owner is a developer (held as stock). But in an absolutely ridiculous change, interest on loans for properties acquired before 27 […]

Categories
Uncategorized

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. […]

Categories
Uncategorized

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 […]

Categories
Uncategorized

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 […]