Detail of Personal Services Income (PSI)
What are the PSI Rules meant to do? The rules were designed to improve the integrity of the tax system by addressing both: The capacity of individuals and interposed entities providing the personal services of an individual to claim higher deductions than employees providing the same or similar services; and The alienation of personal services […]
Extension of application of 2017/13
On 15 August 2018, the Australian Tax Office (ATO) updated Practical Compliance Guideline (PCG) 2017/13 to extend its application to Division 7A sub-trust arrangements adopted in accordance with Practice Statement Law Administration 2010/4 (PS LA 2010/4) that mature in the 2019 income year. PCG 2017/13 as amended provides that the same circumstances that apply to the 2017 and […]
GST basics for uber drivers
When you drive for Uber you are not an employee. You’re a contractor. Here’s why that is important: When you’re not an employee, you have to be careful that your tax affairs are managed correctly. The ATO’s Uber tax implications are straight-forward at a basic level: Any money you make driving for Uber counts as […]
What is a garnishee notice?
Garnishee notices can be issued by a variety of creditors however they are quite regularly used by the ATO as a method of collecting outstanding tax debts. The ATO issues the notices pursuant to Section 206-5 of the Taxation Administration Act 1953 and the notice allows the ATO to collect its outstanding tax debts by […]
Step up in garnishee notice activity
Over coffee with a liquidator this week we were confronted with a serious change in policy with respect of garnishee notices and the approach of the ATO. Since the start of the financial year there has been a concerted approach by the Commissioner to reduce revenue leakage and this has meant that there is an […]
Contractor or Employee?
It is necessary for employers must know whether their workers are employees or contractors because the tax, superannuation and other government obligations change depending on the worker’s status: If a worker is an employee, PAYG withholding will need to be withheld from wages. The employer must report and pay the withheld amounts to the ATO, pay […]
Direct remitting to the ATO
Developers have recently felt the impact of the direct remittance of GST payments from buyers to the ATO. The consequence of this has been significant where the BAS lodgement history has been poor or where the GST planning has resulted in a significant liability at the end of the project. Where a developer is banking […]
Payment arrangements
There are no hard and fast rules as to what the Australian Taxation Office (“ATO”) will consider to be acceptable for a payment. This is because their policies generally refine with time. Prior to undertaking any payment arrangement, it is important to ensure that whatever is proposed is sustainable for your business. For smaller amounts, […]
Garnishee Notices
https://youtu.be/A-rWQ9H-sew First up, if you have recently received a garnishee notice and wondering what it all means we have a lot of resources on our website. It is important to move quickly as doing nothing is not an option once this is in place. So generally, your accountant has provided you the garnishee notice or […]
Importance of lodging your BAS on time
You’re at the end of the quarter and are going to leave the BAS to later, why is this a bad thing? The timely lodgements of Business Account Statements’s (“BAS”) is one of the biggest risk for the operators of businesses and can turn a business debt into a personal debt. For businesses lodging late […]