Land Tax (Vic) Main Residence
Generally, the main residence exemption for land tax purposes only applies where a taxpayer has physically resided at the property from 1 July to 31 December of the previous land tax year. For example, in order for an individual to claim main residence exemption for the 2018 year, the individual would have needed to physically […]
Margin Scheme after Going Concern
It would not be uncommon for a taxpayer to seek to apply the GST margin scheme on the sale of a property after having originally purchased the property under a GST going concern exemption. For example, a property developer might acquire a property which is leased out. After the lease expires, the developer may then […]
Caught out on DPN
The recent case of Fitzgerald v Deputy Commissioner of Taxation [2017] NSWCA 158 presents another example of how difficult it is for a taxpayer to argue he did not receive a director penalty notice (“DPN”). Even where a neighbour may have intercepted the mail, the presumption is that the notice has been “given” to the […]
Diverted profit tax
On 16 February 2017, the Government introduced the Diverted Profits Tax (DPT). It was introduced as a necessary addition to combat multinational tax avoidance. The DPT will apply a 40% tax rate on the diverted profits of multinationals. The penalty tax aims to ensure that tax paid by significant global entities properly reflects the economic […]
Tax residence for companies
Bywater Investments Limited v Commissioner of Taxation; Hua Wang Bank Berhad v Commissioner of Taxation [2016] HCA 45 The High Court has clarified the question of how a company can be controlled and managed in its unanimous dismissal of appeals by four companies (“the appellants”) from a decision of the Full Court of the Federal […]
Property development and taxes
In our experience, people embarking on property development improve their tax and commercial position by documenting their intentions from the beginning. Ultimately, it’s beneficial to know what you are getting yourself into from the outset! Sometimes this can be as simple as a one page deed outlining the intentions of the parties with the net result being a […]
CGT Withholding – Foreign residents
Purchasers to become tax collectors on real estate post-1 July New withholding rules on the sale of property by foreign residents have been introduced – which essentially makes purchasers tax collectors. The government says this has been necessary as foreign investment in Australia, including in residential real estate, is increasing at an unprecedented rate. The […]
Pitfalls of renting your home
Generally, if you rent out part or all of your home, the rent money you receive is assessable. This means that you must declare your rental income in your income tax return, but you can also claim deductions for any associated expenses. However, be warned. If you rent put part of your home, such as […]
Small Business CGT Active v Passive
The small business capital gains tax concessions are extremely valuable, and for small business owners who need to dispose of assets that have risen in value during the time they have owned them, accessing these concessions can mean greatly reducing any consequent tax liability, even to zero. But to access the CGT concessions some conditions […]
CGT on developing the family home
Understanding the taxation consequences of splitting the family home land or starting a development.
Getting advice around this is important and makes sure you do not lose concessions.
