Categories
Tax Policy

Unpaid present entitlements to corporate beneficiaries

In December 2009 the Commissioner changed his position on unpaid present entitlements to corporate beneficiaries – claiming they became Division 7A loans after a year. I, like many people raised this with the Government and they said “wait for the final ruling”, “wait for the practice statement”, “wait for a NON EXISTANT test case” and […]

Categories
Income Tax Tax Policy

Another ridiculous tax policy… supported by every side

When there is change in government you hope they can dump all the stupid ideas of the previous government. But with the new government still needing to find savings stupid ideas seem not so stupid. In the May 2013 Budget the Labor (one day they might learn how to spell their party’s name) stead they […]

Categories
Planning Stuff Rulings Super

Reserving strategies work…

In a new Taxation Determination (TD 2013/22) the Commissioner gives a green light to reserving strategies to avoid excess contributions. He states that if a fund receives contributions in year 1 but allocates it to a member in year 2, it is a concessional contribution in year 2. So hopefully the funds deed allows for […]

Categories
Income Tax Planning Stuff

Moving from cash to accruals

Since the Henderson Case it has been clear that there is only one appropriate way to return income for a year – either cash or accruals. TR 98/1 covers which one is correct for each year. But what happens to your debtors when in year one you were correctly on cash and in year two […]

Categories
Income Tax Part IVA Planning Stuff Rulings

Part IVA and partnerships of discretionary trusts

The most annoying habit of the Commissioner is to let everyone do something for years and then to finally try to close it down. Take the Commissioner’s announcement on 16 December 2009 that an unpaid present entitlement from a trust to a corporate beneficiary is a loan to which Division 7A applies. So 12 years […]

Categories
FBT Planning Stuff Tax Policy

The post the salary packagers do not wanted you to see…

Go to any salary packager’s website and they will have a calculator. After you complete or the details the calculator will tell you how much you will save in tax by salary packaging a car. THIS NUMBER IS ABSOLUTELY RUBBISH. I don’t mean the calculation is wrong in any way at all. What I mean […]

Categories
Tax Policy

Finding extra revenue in the tax system? Where?

I think I have a right to say this as I gave up a high paid job as a tax advisor and spent three years working in the Treasury, on the Henry Review and in the office of the Assistant Treasurer and most of the time I tried to convince people to remove tax give […]

Categories
FBT Planning Stuff

Even crazier (and legal) salary packaging ideas

In the National Tax Liaison Group FBT Subcommittee (yes I have sat on this committee and it is full of FBT nerds…) in November 2005 the Commissioner confrimed that, as an employer can provide a benefit to an employee for their long service valued at $1,000 after 15 years, increasing by $100 every year after that, and there is […]

Categories
FBT Planning Stuff

Crazy (but legal) salary packaging options…

An expense fringe benefit arises when an expense is reimbursed, irrespective of when the employee incurred the expense that is reimbursed. So if you forgot to salary package an expense that it would have been beneficial to salary package then just get it reimbursed today and the benefit arises. First a silly example… For ten […]

Categories
Income Tax Part IVA Planning Stuff

Part IVA applies to small businesses

I don’t get that so many small business advisors think Part IVA can not apply to their clients. Yes it does not happen often but if it does your business is on the line. And here is where it is most likely to apply… You just read my post below and want to inject income […]