Div 7A doing nothing
If so, then you need to keep reading….. Over the years, we have seen many business owners taking money out of their own companies – mainly because they believe it is theirs. The money is then used to purchase the family home, a new car, boat and for many other good reasons. This is not […]
Trust Tax Losses
Australian trust loss rules are complex, poorly understood and onerous to apply. As a result, business or investment trusts risk claiming losses incorrectly, a situation that can result in a significant tax liability. By making a family trust election (FTE), small to medium sized privately-held businesses operating as a trust can satisfy the trust loss […]
Corporate Tax Losses
Do you pass the ‘continuity of ownership’ (COT) test? If your company has past tax losses that haven’t been used as a tax deduction, this tip is for you… Check the conditions under which a company’s past losses may be claimed as tax deductions. The benefits may include significant reductions in corporate tax payable. Owners […]
Mitigating penalties on Div 7A
Introduced almost 19 years ago, Division 7A and its various exemptions apply to all private companies, their shareholders and shareholder associates across the country. While I consider this matter an Accounting & Tax 101 function, I regularly see it applied incorrectly which is concerning when you consider the significant tax penalties it can bring. Good […]
Div 7A Traps
Division 7A Traps – Loan Repayments that are NOT Loan Repayments! Division 7A (or Div 7A for short!) is an anti-avoidance measure designed to prevent private companies from making tax-free distributions of profits to shareholders or to their associates in the form of payments, loans, forgiven debts or via the use of private company assets. […]
Tax of lease incentives
The income tax implications of property lease incentives Lease incentives are commonly used by landlords to entice tenants to enter into a lease. The most common type of lease incentive relates to new tenancies in commercial buildings. These inducements can take many forms, including upfront cash payments, non-cash items such as motor vehicles or boats, […]
Basics of an Employment Termination Payment (ETP)
The taxation of employment termination payments An employment termination payment (ETP) is generally a lump sum amount paid to an employee upon termination of their employment.Depending on the type of ETP, the employee’s age and years of service, the amount may be taxed in a number of different ways. An ETP may comprise of a […]
Complication of investments for children
It is a fairly well-established and welcome act for an aunt or uncle or of course a parent to start a savings account for a new addition to the next generation. It is not so common however, among the warm and generous emotions that accompany such a gift to factor in the taxation obligations that […]
Ride-Share Income
Have you or someone you know considered taking up ride-sharing (also called ride-sourcing) to earn extra income, or even as an alternative form of employment? When providing ride-sharing services through Uber or GoCatch and other facilitators for a fare, there are things you will need to know, and traps you need to be aware of. […]
Simple Div 7A
If you have a company, then you have probably sat in a meeting with your accountant and heard the phrase ‘that may raise Division 7A issues’. Everyone usually then grumbles and nods wisely, and moves on… But you may be asking yourself, what is Division 7A? Glad you asked. In short, Division 7A is relevant […]