Category: Planning Stuff
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Part IVA and the Small Business CGT Concessions
I have been fearing this day for some time. A day when the Commissioner applies the general anti avoidance provision in Part IVA to a taxpayer who arranges a sale of a business to make the most of the Small Business CGT Concessions. We all know how this is done. “Just before” the sale we…
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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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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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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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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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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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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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Super gets an indexation boost
Its time to relearn your super rules… From 2014/15 the concessional contribution cap will increased for the first time to $30,000. So remember that in the 2014/15 year there will be a $35,000 cap for those aged 49 years or over on 30 June 2014, and a $30,000 cap for everyone else. As a result the non-concessional…
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UPEs and Division 7A…
Another discussion paper on how to solve the problem of UPEs and Division 7A has been released… And it is very very interesting. This discussion paper is by the Board of Taxation. And they suggest that a UPE to a corporate beneficiary should be excluded from Division 7A. But if you want a trust that…
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