Categories
Income Tax Legislation Planning Idea Planning Stuff Rulings

More on the Small Business Rollover

Yes I am way too excited about this… But the Commissioner has produced his first two bits of guidance on using this rollover. In the first he looks at the consequences of using the rollover. This is all pretty simple stuff (cost base transfer…) but the final example has the trick in it… Example 6 – […]

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Rulings

Are ATOIDs over?

On the 28th of November the Commissioner released two ATO Interpretative Decisions on non arms length income and limited recourse borrowing arrangements… And since that date, no more ATOIDs. Strange. ATOIDs arose to fill in a gap between public rulings and private rulings. What if a complex tax issue is not covered in a public […]

Categories
Income Tax Rulings

How do I fix up a large UPE

I know they are not as common since December 2009, but now that we are generally paying interest on new UPEs to corporate beneficiaries (as required under TR 2010/3) these UPEs can be a real pain. Especially if the trust that retains the cash that created the UPE is not making a lot of money and […]

Categories
Income Tax Rulings

Common property in blocks of units

So who owns the common property in a block of units, the strata trust or the owners. Legally it depends on the state legislation. However, in Taxation Ruling TR 2015/3 the Commissioner simplifies this 40. Each strata title legislation is different in its description of how common property is held. Notwithstanding these differences, the Commissioner […]

Categories
Income Tax Rulings

The Commissioner believes in drinking in moderation?

In Taxation Determination TD 2015/9 the Commissioner provides amounts that he will accept as estimates of the value of goods taken from trading stock for private use by taxpayers in named industries. This helps certain businesses estimate what trading stock has been “sold” outside the normal course of business (like eaten by the owners). So if you […]

Categories
Legislation Rulings

Earnouts – the wait is over

A long, long time ago in a Tax Office far, far away… After waiting 6 and a half years the Treasury has finally drafted some legislation to fix up how capital gains tax concessions apply to earnouts. But just a quick reminder on the history of this issue… In October 2007 the then Commissioner of […]

Categories
GST Rulings

Gloxina GST idea is now 110% dead…

Following the 2010 Gloxina case I have had a lot of people tell me they have a great way to avoid developers having to charge GST on the new residential premises they build. You have heard the same line… Well can I just say it is now 110% dead. You would think that the Government […]

Categories
FBT Planning Idea Rulings

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 […]

Categories
Rulings Super

Super paid for the dead… Required by law???

What do you do regarding super payments if an employee dies? In ATO Interpretative Decision ATO ID 2014/31 the Commissioner considers whether you have SG obligations on salary and wages paid to an employee after they died. In this case the payment was made as the employer owed the employee salary for the last fortnight […]

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FBT Planning Idea Planning Stuff Rulings

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 […]