Category: Planning Idea
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Start up Employee share scheme just got fun….
We have blogged about this before but we now have some draft legislation that will make 1 July 2015 lots of fun for advice to start up companies. While this draft legislation makes other changes as well**, this will also make remunerating certain employers lots of fun. These Start up companies will be able to…
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The End of Excess Contributions Tax Mark 2
In the Tax and Superannuation Laws Amendment (2014 Measures No 7) Bill 2014 we finally get the final rules that will allow the refund of excess non-concessional contributions. We have discussed this change when it was released as draft legislation. But the final legislation is different from the draft legislation in the following ways: There is no longer a…
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A great reminder with related party transactions
Section 82KK of the ITAA36 is one of those section that I knew existed once but have not thought about for years. This section applies where there is a timing mismatch in payments to associates so that income is recognised in a later year than the matching deduction. When this section applies the deduction is…
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FBT and Public Hospitals
FBT exemptions are amazing ways to reward employees. And one of the most used FBT exemptions relates to employees of public hospital. These employees can receive up to $17,000 worth of grossed up benefits. What does grossed up mean? That there is no FBT payable if the value of the benefits, multiplied by the appropriate…
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Capital losses and death… There still is some life in the losses
In relation to prior year net capital losses, if a deceased person had any unapplied net capital losses when they died, these can be taken into account in their final (date of death) return, but can’t be passed on to the beneficiary or legal personal representative to offset against any net capital gains. So the…
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Religious Practitioners and Fringe Benefits
Believe it or not, I get asked this question all the time so to save you asking me… Section 57 of the Fringe Benefits Assessment Act 1986 includes an exemption from Fringe Benefits Tax on benefits for certain employees of religious institutions. Under this section, if a benefit is provided by a religious organisation to…
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The end of Ireland as a global tax power…
In its most recent Budget, the Irish Government announced it would change its tax residence rules for companies – rules that have been used by thousands of multinationals to avoid tax. The residency rule currently are that a company is a tax resident where it has its central management and control, irrespective of where the…
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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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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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