Category: Income Tax
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Gardening leave and personal services income
I never thought I would read the term “gardening leave” in a tax ruling but it is the main issue in draft taxation determination TD 2014/D15. The issue is whether the payment you get while you are on gardening leave (which if you don’t know is when you are told to go home, work in…
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Am I cool if I say Bitcoin?
I live in a town of less than 400,000 people and I just saw a Bitcoin ATM. I don’t know who to use it but how cool am I for living near a Bitcoin ATM… The Commissioner also is cool as he has released his thoughts on the tax treatment of Bitcoin transaction. In summary,…
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35-55 and non commercial losses discretion
Given it happens so infrequently, I thought I should mention a case where the AAT has required the Commissioner to exercise his discretion to not apply the non commercial losses rule in Division 35 of the ITAA97. In AAT Case [2014] AATA 620, Re Bentivoglio v FCT a medical doctor earning over $250,000 (so could…
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Divorce and Dividends #2
The Commissioner has released a fact sheet on when a payment or in specie transfer from private company to an individual under matrimonial proceedings can be a dividend or a deemed divided. I have discussed this before but there are some interesting examples in this fact sheet: First the simple case… Tim, Helene and a…
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Instant Asset Write Off Clarity – Successful negotiation with a PUP
I know I should wait until the Bill goes back to the House of Reps this evening to confirm the Senate amendments before writing this post but… From 1 January 2014 (installed ready for use from this date) the instant asset write off for small businesses is $1,000 (down from $6,500). Also, there is no…
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Partnerships of Discretionary Trusts on the nose…
Late last year the Commissioner released a Taxpayer Alert on the use of partnerships of discretionary trust by professional practices to avoid tax. In the Taxpayer Alert late last year the Commissioner stated that he was concerned that the dominant purpose for setting up a partnership of discretionary trusts for a professional practice was to…
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Divorce and Division 7A
In Taxation Ruling TR 2014/5 the Commissioner confirms one of the most overlooked tax issues in marriage breakdowns. For example, if money or property is paid or transferred to a shareholder, if these payments are paid out of the private company profits, it will generally be an assessable dividend. In addition, money or property transferred…
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$6,500 Immediate asset write-off stays – until 25 August
The mining tax is not repealed!!! The Senate has voted to keep its amendments which say you can get rid of the mining tax but all the concessions that mining tax was supposed to fund have to stay… No tax in and lots of payments out… And the next sitting date in 25 August. So…
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All animals are equal, just some are more equal than others..
The Commissioner of Taxation has just written to some of its staff. The letter states that the staff may get a shock when they get their payment summaries. You see, like almost every employer in Australia, the Commissioner pays allowances while employees are travelling. We all know that the amount we pay is the Commissioner’s…
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Immediate Asset Write-Off Mark 2
I take it all back!!! Clive Palmer has just announced the instant asset write off of $6,500 stays or he wont support the repeal of the Mining Tax… Without his three Senators the proposed reduction to the instant asset write-off for small businesses will not happen and so this write-off will stay at $6,500… And…
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