News
In a recent speech, George Hitti, Assistant Deputy Commissioner, ATO, discussed the ATO’s approach to large corporates and the issue of tax avoidance and evasion. He said the ATO has noticed that the “appetite for taking on tax risk – i.e. the risk of the ATO taking a different view to them, is currently decreasing…
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The Senate has disallowed the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014. ASIC will take a practical and measured approach to administering the law as it now stands following this disallowance. They will take into account that as a result of the change to the law that applies to the provision of financial…
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The ATO has reassured taxpayers that disclosing under Project DO IT will not mark them with a “red flag”. Project DO IT offers benefits to taxpayers who bring their undeclared offshore income and assets back into Australia’s tax system by Friday 19 December. The ATO said feedback had raised taxpayer concerns that if they disclose…
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Under Div 7A of the ITAA 1936, certain amounts paid, lent or forgiven by a private company to shareholders or their associates may be treated as being a deemed dividend for tax purposes, subject to some exclusions. However, the Commissioner has a discretion to disregard this outcome if the deemed dividend arises as a result…
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The Commissioner, Chris Jordan, has provided an update on the ATO’s offshore voluntary disclosure initiative, Project DO IT at the CPA Congress in Melbourne. Mr Jordan noted that more than 1200 people have come forward so far and 700 people have made disclosures of more than $120 million of income and over $700 million in…
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The government has announced that it will reform the tax treatment of employee share schemes to support start-up companies and boost entrepreneurship. Specifically, it said it will reverse the changes made in 2009 to the taxing point for options. The change will apply to all companies and will mean that discounted options are generally taxed…
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The ATO has released a Decision Impact Statement on the decision of the Full Court of the Family Court in FCT & Darling and Anor [2014] FamCAFC 59. In that case, Full Court of the Family Court ruled that the Court at first instance in FCT & Darling and Anor [2013] FamCA 118 wrongly applied…
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The Governor-General has proclaimed Tuesday 30 September as the start date for Sch 1 to 5 of the Minerals Resource Rent Tax Repeal and Other Measures Act 2014. As a result, the Schedules will have the following dates of effect for most taxpayers (those with a substituted accounting period may have a different date of…
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The ATO’s voluntary disclosure initiative for undeclared offshore assets and income, Project DO IT, is a one-off opportunity for Australian residents to disclose undeclared income derived overseas without being subject to highly punitive penalties. Those participating in Project DO IT will only pay outstanding income tax on undeclared income and related interest over the past…
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The ATO says it is increasing its focus on rental property deductions. It says common errors made by rental property owners include: claiming rental deductions for properties not genuinely available for rent; incorrectly claiming deductions for properties only available for rent part of the year such as a holiday home; incorrectly claiming structural improvement costs…
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