Categories
Income Tax

Tax Depreciation Myths

There is a field of study that shows that you cannot teach an adult anything that is contrary to their current opinion without first challenging or disproving their current opinion. I recently had an email war with a preparer of tax depreciation schedules about what you can claim Division 43 on… either the historic construction costs […]

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Income Tax Planning Idea Planning Stuff Tax Policy

And so there is another scheme to avoid Division 7A

A few weeks after 4 December 1997 I was told about my first Division 7A avoidance idea. And by mid 2008 the first amendment to Division 7A came about to undo this idea (the old section 109UB to stop trusts loaning corporate UPEs to owners). Since then I have been asked lots of times to […]

Categories
Budget Income Tax Planning Idea Planning Stuff Tax Policy

More Wow!

I was thinking about yesterday’s post and I have a strange thought. If I have a CGT asset owned by a company I am not going to get the CGT discount. But if I use the rollover from yesterday’s post to move the CGT asset to a trust and sell it the next day I […]

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Budget Income Tax Legislation Planning Idea Planning Stuff

Wow! I mean wow!!! Like wow!!!

In the May budget the government promised a new rollover for small businesses that allowed them to change their structure without (federal) tax effects. The Treasury has released a draft of this rollover and it is amazing. Listen to this… You can roll small business assets into a new structure if ultimate economic ownership of the […]

Categories
Income Tax

Why am I defending Malcolm?

As anyone who knows me knows, my political leanings are to the left (Chris Bowen for PM with Andrew Leigh as Treasurer). But I want to kick the Labor party, and especially Senator Sam, for their unprincipled “Cayman Island” tax attack on the Prime Minister. While coaching Little Athletics today I hear a Dad say […]

Categories
Cases Income Tax

Can I claim a deduction for travel to work?

NO! Well maybe No. The Full Federal Court in the John Holland Group case has concluded that the costs of certain travel for fly-in-fly-out employees travelling to work can be deductible (so if paid for by the employer there will be no FBT payable under the otherwise deductible rule). In this case the employees lived […]

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Income Tax Planning Idea Tax Policy

The negative gearing myth exposed

If we stopped negative gearing on 1 July 2015 it would reduce the budget deficits across the next four years by $2.94 billion. Sounds amazing… The budget deficits over the next four years are well over $80 billion combined! Can we please accept that proposed changes to super by the Opposition ($1.2 billion a year […]

Categories
Income Tax Tax Policy

A fundamental change to Division 7A (stuck in a review for another year!?!?)

You can’t just say this and do nothing… The Government has FINALLY released the very long awaited post implementation review into Division 7A . This review started in 2012 and was to be the place where the Government, through the Board of Taxation, consider making Division 7A less painful. Specifically, in 2013 the Board were told […]

Categories
Income Tax Tax Policy

Div 7A and UPEs – The Assistant Treasurer Chickens out

I will write more about the Board of Tax report on Division 7A tonight, but I just sent this to the Assistant Treasurer… I refer to your press release of today. We have been waiting for you to release the Board of Tax report on Division 7A since 2012 as we knew it would recommend […]

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Income Tax Part IVA Tax Policy

Unfortunate facts for those who want more tax from multinationals

I once worked for one of these multinationals. It was a US Company with a direct investment in Australia. The US company charged the Australian subsidiary management fees for head office costs, legal, finance… We were subject to a transfer pricing review by the ATO and at the same time the IRS in the US subjected […]