Allocating profits in a professional firm
Allocating Profits within Professional Firms The allocation of profits within Professional Firms, such as accounting, architectural, engineering, financial services, legal and medical professions, continues to be under close scrutiny by the ATO. In 2015 the ATO issued guidelines for practitioners outlining how its general anti-avoidance legislation could apply to professional firms that allocate profits from […]
ATO on your credit rating
Per the 2016/17 MYEFO, effective from 1 July 2017, the ATO will be given the power to disclose tax debt information to credit reporting bureaus where taxpayers have not previously engaged with the ATO in relation to the payment of their debts. Initially, the new measures will only be used in relation to business related […]
Launch of our video platform
We have recently been working through a range of education and information videos to support our partners or to give you some understanding of the issues that arise in the management of taxation or restructure issues. Understanding that some of the issues that arise are complicated and need further explanation, each video tries to cover […]
ATO Guidance for Executors
One of the major concerns for taxpayers in taking on the role of a legal personal representative is that the Tax Commissioner may treat legal personal representatives (“LPRs”) as having a personal liability for a tax debts. In particular, where assets of a deceased estate have been distributed and there is still outstanding amounts owed […]
PSI Results Test
The Results Test The results test provides that an individual or personal services entity meets the results test in an income year if in relation to at least 75% of the individuals personal services income: (a) the income is for producing a result; and (b) the individual is required to supply the plant and equipment, […]
Basics of Family Trust Elections
Most practitioners have heard of family trust elections, and some may have made family trust elections to err on the side of caution. However, in many cases, a clear explanation of the reasons for making a family trust election is not readily available. This article aims to provide a practical explanation of the main situations […]
Cash v Accruals
Goods and Services Tax (“GST“) is calculated as the GST owed to the Australian Taxation Office (“ATO“) by the business (GST collected on sales made) less GST owed by the ATO to the business (GST paid on purchases made). The ATO gives small business owners the option of reporting GST on a cash basis if […]
Managing carried forward losses
You operate a company Your accountant set you up in a company and in recent years things have been pretty tough business wise so much so that the company has incurred significant losses. Your business partner who feels the business cannot afford 2 owners and who owns the other 50%, has asked you to buy them […]
New GST Rules for Property Developers
https://youtu.be/wGIR-zSzZrM From 1 July 2018, a Goods and Services Tax (“GST“) withholding obligation will be imposed on purchaser of certain residential premises, including certain vacant land. Purchaser must withhold the ‘GST component’ of the sale price of affected land and pay it directly to the Commissioner instead of the seller. Transitional rules may apply for […]
Vehicles and FBT
Restrictions on reducing Fringe Benefits Tax (“FBT”) on car expense payments From 1 April 2016, the “otherwise deductible” rule has changed for car expense payment fringe benefits (i.e. where an employer meets or reimburses an employee for fuel or other running expenses). Previously, employers could elect to reduce the taxable value of car expense benefits […]