Author: Ken Mansell
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Non-residents entities trying to legally avoid lodging Aussie tax returns
I love working for North Asian entities. When the are looking to operate in another country (like Australia), they first ask the question “can we avoid having to pay tax and lodging tax returns in the other country?” They are also willing to change their practices to simplify tax outcomes – not reduce tax payable…
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Employee Shares Schemes are back from 1 July 2015
Back in 2009 the previous Government put certain divisions of the big accounting and law firms out of business, generally called “executive remuneration”. But they need to get ready to go back to flogging their delayed tax income from 1 July 2015 as the new Government intends to reinstate one of their best ideas. In…
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The ALMOST end of Excess Contributions Tax
In the last budget the Government announced the end of Excess Contributions Tax. The announcement was that, just like was already the case for excess concessional contributions, from 1 July 2013 if a taxpayer makes excess non concessional contributions, rather than assessing them with Excess Contributions Tax, the super fund could refund the excess amount.…
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Can Fairfax economists please get a lesson in tax…
Coming on the back of five wrong articles in the SMH And the Age on a mythical $8 billion of unpaid company tax (notice that the only paper in the Fairfax fold not claiming there is missing company tax is the AFR – because they actually understand taxation) another Fairfax journalist tells us he can…
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Tax, super and pizza – the perfect combination
Pop quiz: Are pizza delivery drivers, who are required to use their own vehicle and are just paid per delivery, employees for the SGAA? ATO Interpretative Decision 2014/28 says they are. It concludes they are common law employees as the vehicle is not an “overriding factor when considering the arrangement as a whole.” This is…
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GST and motor vehicles and incentive payments and fleet discounts and runout models and…
One of the more interesting GST cases in recent times is AP Group Limited v. Federal Commissioner of Taxation (2013) 214 FCR 301; [2013] FCAFC 105; 2013 ATC 20-417. The case considered a series of payments made in the motor vehicle industry. Following this case the Commissioner has released his first GST ruling for 2014…
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More proof that journalists are lobbyists
In the fairfax papers today is another “big companies should pay more tax” article. And like most of these articles, it is just rubbish. The article states that ASX listed companies have tax rates at less than 30% – even lower than 10% – from analysing their accounts and looking at their tax expense line.…
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Using imputations credits in an entity that does not have retained earnings
I have been asked a few times about using imputations credits in an entity that does not have retained earnings. Well there are a series of ways to do this. What people often try to do in the small end of town is to drop in some tax free income (often using section 23AJ or…
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Can a new company pay a fully franked dividend in its first year?
A question I get asked regularly is can a new company pay a fully franked dividend in its first year, even if it has never paid a tax bill yet as it has not yet lodged its first tax return and so has not paid any PAYGI? The answer is a big YES without any…
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“Excess GST”, “passed on”, “reimbursed”…
One of the best amendments to the GST Act ever was inserting a new Division, Division 142. This Division applies to tax periods starting on or after 31 May 2014. The object of Division 142 is to ensure that excess GST is not refunded if this would give an entity a windfall gain. In summary,…
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