Category: Uncategorized
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Jobkeeper Overpayments
Now that JobKeeper is over, the only concern I hear from practitioners is about the possibility of having to pay it back. Many of us estimated a projected loss well over 30% back in March 2020 but that loss never came and they wonder whether the Commissioner is going to come after this. Well, the…
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Monday Ramblings – Granny Flats & CGT
To attempt to get people to formalise granny flat arrangement to give the elderly the rights they need the Treasury has released draft legislation to make an exemption from CGT. To avoid CGT on these granny flat arrangements, the Board of Tax indicated that people would not formalise granny flat arrangements, and this could lead…
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New Zealand to remove interest deductions on second hand residential property
The New Zealand government has announced it will deny interest deductions on residential investment property acquired on or after 27 March 2021 starting from 1 October 2021, unless the residence is new or the owner is a developer (held as stock). But in an absolutely ridiculous change, interest on loans for properties acquired before 27…
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Early Monday Ramblings – A New FBT Exemption
In Division 13 of Part III of the Fringe Benefits Tax Assessment Act 1986 are a series of FBT exemptions. From section 53 to section 58ZD are a very long list, 41 to be exact, of exemptions… but now there could be 42 exemptions as the Treasury has released draft legislation adding a new exemption.…
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Monday Ramblings – When does a company carry on a business?
When does a company carry on a business? This is an important question, primarily for the small business entity concessions which require the entity to be carrying on a business. In Taxation Ruling TR 2019/1 Income tax: when does a company carry on a business? the Commissioner answers this question. But only for companies. But…
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Dodgy Taxpayers
Let me share with you two stories of dodgy taxpayers… Cop couple caught and convicted In their 2017 and 2018 income tax returns, they claimed refunds totalling $28,483 and $17,851. They ignored system-generated warnings due to the size of the WRE deductions, lodged their returns and got audited. To prove their claims, they provided a…
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Concessional Contribution Cap to $27,500
We knew it was coming due to RBA rates, but finally the Commissioner has indexed the Contribution caps for super… And the three year rolling contributions goes to $330,000 on 1 July 2021 as well.
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Monday Rambling (its Easter so I am early) – GST, the Margin Scheme & Property development in the ACT
The Commissioner has ended the 10 year discussion on how the margin scheme works for major developments in the ACT. Many developers have received large GST refund in the past but these won’t be happening going forward. However, while the Commissioner states his new Determination, GST Determination GSTD 2021/1, is retrospective he states that developers with…
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Worth an argument??? Maybe not…
In the case Cross and Tax Practitioners Board [2021] AATA 441, the Commissioner wrote to the Tax Practitioner Board, saying that a tax agent had lodged 125 SMSF annual reports, each saying the fund had been audited by a specific auditor on a certain date, when no such audit had occurred. The best part is…
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Monday Ramblings – Personal Service Businesses and Part IVA
In addition to the Commissioner’s new draft guideline on Allocation of professional firm profits that I have “blogged” on before, he has also released a Draft Taxation Ruling covering the operation of the personal services income. It is in Draft Taxation Ruling TR 2021/D2 Income tax: personal services income and personal services businesses He had previous…
