Category: Uncategorized
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Lets have a new tax…
For Fathers Day My boys bought me a new electric shaver… All I could think about was tax avoidance… That is because in 1698, the cleanly shaved Emperor of Russia, in a hope to make Russia men look more European, instituted a Beard Tax. If you have a beard you have to pay a tax.…
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Travel and Accommodation Deductions
I have been getting asked a lot of questions about travel and accomodation deductions… They are normally about a contractor or employee who is working away from their home far enough away they can’t just come home each night. They live in Geelong but work in Melbourne, they live in Perth and work in Darwin……
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My favourite 2 Tax Myths
In “Tax myths busted!”, Commissioner of Taxation, www.ato.gov.au, 30 June 2018 The Commissioner has identified the top 10 tax myths and misunderstandings that are those involved in preparing individual tax returns have, including tax agents prepared and self-prepared returns. And generally, they relate to substantiation of work related deductions. MYTH #1: Claim $150 for clothing…
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What is the Company Tax Rate? Last answer I promise…
I don’t feel like a pathetic tax advisor any more. You see, for the past 10 months I have not been able to answer the question “What is the company tax rate?” I know I find the answer in the Tax Rates Act. And I know the Tax Rates Act tells me that: From 1…
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Work and Travel Deductions
Given that I have criticised for my recent comments on tax agent prepared returns making inappropriate claims for work related deductions, I decided to put a paper together on the work related deduction rules to help tax agents. I hope this paper is informative and helpful. Work and travel deductions
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Tax Agents Turning a Blind Eye…
We know that the Commissioner has released some pretty crazy findings that Tax Agent prepared returns are more likely to incorrectly claim work related deductions than self prepared returns. From the Commissioner’s review of the tax gap for individuals not in business he found the following: Tax agents get it wrong 78% of the time…
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What is the Company Tax Rate?
Now this should be an easy answer. So tell me what you think it is? I understand that it is a bit harder than it was now that there are two rates, being 30% and 27.5% (28.5% in the 2015/16 year). But can you tell me who gets the lower rate? Don’t worry if you…
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Dodgy workers (and their agents) cost us $8 billion every year
Do you know those evil multinational and large companies with all their high paid tax agents incorrectly avoid about $2.5 billion a year in tax. How evil are they, huh? Picking on the little, hard working guy, huh? Let’s just end that argument now as the Commissioner, the same guy who gave us the $2.5…
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The R&D Tax Incentive is cut by half
In the Budget we got the following announcement… From 1 July 2018, companies with turnover of $20 million or more, the rate of the R&D tax offset will depend on the R&D expenditure as a proportion of total expenditure for the year. The current rate for these entities is 38.5%. As the company tax rate…
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Remember that if you don’t like this budget there is an alternative… The Opposition…
The facts… A taxpayer has a discretionary trust and the trust owns a share in a company that runs an accounting practice. The taxpayer is paid a salary of $250,000 for his work in the accounting practice. The profits of the company are paid to the discretionary trust and are generally around $60,000 but this…
