Category: Income Tax
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Avoid a trust audit
The Commissioner has told you how to get you trust audited (http://www.ato.gov.au/Forms/Labels-53A-and-54W-in-the-2013-trust-tax-return/). Either don’t complete labels 53A and 54W or make these two labels as different as you can. One of these labels is trust income and one is tax income (section 95 net income). If they are different the Commissioner states he is looking…
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The coffee is just awful!
Why are there no posts recently??? Disneyworld, Legoland and the Kennedy Space Centre… But the worst thing about being in Florida according to my wife is the coffee. And then she saw the answer – Starbucks. Due to tax, Starbucks should be good coffee. Why? Starbuck pays almost no tax in the US or Australia.…
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You think tax rates are bad in Australia?
Following the highest court in France upholding a 75% tax rate for incomes over €1 million, I started to look at whether I should start consulting in French… Un bagette merci… First, the 75% tax rate is payable where a group of employers pays an employee over €1 million and is payable BY THE EMPLOYER!…
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Luxury cars and hire purchase
Most luxury cars are financed in some way or another – although a car salesman friend of mine says a man wanted to buy his $80,000 BMW with cash, real notes. Maybe the car was still financed in some way (like mafia financed…). But this does beg a tax question? Does the luxury car tax…
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A quick lesson in statutory interpretation from the Commissioner…
I can’t believe I just wrote this heading given I just won an AAT case (they conceded) that trust beneficiaries are taxed on present entitlements and not payment… I am not kidding, they denied interest deductions for a year as there was no payment only a present entitlement. But in draft Taxation Ruling TR2013/D8 –…
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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…
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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…
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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.…
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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…
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Another ridiculous tax policy… supported by every side
When there is change in government you hope they can dump all the stupid ideas of the previous government. But with the new government still needing to find savings stupid ideas seem not so stupid. In the May 2013 Budget the Labor (one day they might learn how to spell their party’s name) stead they…
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