Strategy to deal with the ATO
Small businesses account for more than 60% of the total debt owing to the ATO. So if you’ve got a tax debt, you are definitely not alone. But don’t make the mistake of ignoring a tax debt. It is not going to go away on its own. In fact there is no time limitation for the collection […]
Tax Negotiations
The ATO is different to other creditors. The ATO has the right to demand tax debt and take money from you without proving its debt in court. It also has the power to demand and take security deposits for future debts even before they exist. They can turn a company tax debt into the director’s […]
What is total super balance?
Recent superannuation reforms introduced a concept of “total superannuation balance”, which on the surface may give the simple impression that it is the sum of the balances of a person’s superannuation interests. However, this is not the case. What is the total balance relevant for? The total superannuation balance is relevant in determining a super […]
Defining asset use for CGT concessions
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 […]
Trading stock or capital
Investment products may be held as trading stock by a taxpayer carrying on a business of share trading or options trading. However, whether a particular parcel should be treated as trading stock must be determined on a case-by-case basis. Generally, the tax issues facing share traders versus passive investors are summarised below. Tax treatment of […]
Details for FBT
As the FBT year runs from 1 April to 31 March, the months of October to December marks the “third quarter” of the FBT year, and so here is an overview of the FBT elements that can attract the ATO’s attention. This can be a timely period for a compliance check-up, so that employers who […]
Passing control of a trust
Good estate planning starts at the beginning of one’s working life, not at the end. In the early 1980s, many family trusts were set up with a vesting date of only 40 years because it was considered the best way to avoid the uncertain issues relating to the anticipated introduction of capital gain tax (which […]
Super benefits to children
For a parent the most difficult and frightening happening to consider is what will happen to your children in the event of your untimely death. But for parents in New South Wales, there are a number of avenues to financially protect your children in the event that something tragic happens to you. If the parent […]
Travel Allowance
A travel allowance is a payment made to employees to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. In most circumstances, when claiming other deductions, you will be expected to be able to substantiate the expense being claimed with documentary […]
Basics of payment arrangements
For many financially troubled businesses, the ATO is one of the first creditors that misses out on the payment cycle. Surprisingly to many, the ATO is quite reasonable in its dealings with taxpayers who are struggling to pay their tax debts. In fact, the ATO is very generous in the Payment Arrangements it will agree. […]
