Author: Ken Mansell
-
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 Court overturned a Federal Court decision that the GST anti avoidance rules in Division 165 did not apply. The facts were that…
-
At least he is honest how he bought the kabab business
UPE kebabs – paid for by a 30% tax rate using Unpaid Present Entitlements
-
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… First what is the income injection test? It is a test that states that if…
-
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 July 2013. SO this is their idea of a phase out… First, “From the 2013-14…
-
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 fringe benefits would hurt the local car manufacturers. But by 2017 there will be no…
-
A novel way to get people to pay tax…
In Zhangzhou, in China’s southern Fujian province, children of high taxpayer parents are given bonus points in their public exams. I can see people paying extra tax to increase their child’s exam scores. Who need Gonski?
-
Another Federal Court versus High Court GST battle in the making…
Once again the Federal Court has found a new way to look at the most fundamental definition in the GST Act – a “supply”. In the MBI Case the Federal Court found that Division 135 did not apply. Division 135 stops this idea… I am buying your warehouse (commercial real property so GST applies) but…
-
Another problem with marriage breakdowns
When a family court order as a part of a marriage breakdown requires assets held in a family company to be transferred there is no CGT payable due to the 126A rollover. BUT if the receiving spouse is a shareholder the Commissioner says it is a dividend and taxed under section 44 of the ITAA36.…
-
One year of carry back losses…
If you are completing a company tax return for the year ended 30 June 2013, you may have made your first ever claim for the refundable tax offset that the carry back loss rules created. Enjoy claiming this offset while you can, as the 2012/13 year will be the last year it is available. This…
-
Unpaid present entitlements to corporate beneficiaries
In December 2009 the Commissioner changed his position on unpaid present entitlements to corporate beneficiaries – claiming they became Division 7A loans after a year. I, like many people raised this with the Government and they said “wait for the final ruling”, “wait for the practice statement”, “wait for a NON EXISTANT test case” and…
TaxRambling.com 