When will the Commissioner consider an unpaid UPE to be a loan?
When will the Commissioner consider an unpaid present entitlement to be a loan by a corporate beneficiary to the trust?
|
What must be done by June 30?
The questions on the lips of most tax agents are the following:
- what do we need to do by 30 June?
- do we need to get trust deeds amended?
- will our existing unpaid present entitlements to corporate beneficiaries become loans?
- can we keep using bucket companies?
|
Improvements to RBA’s and Interest on Overpayments
The Government will rewrite the tax law's running balance account provisions to provide the flexibility to manage tax debts and entitlements more efficiently and in a way that is more useful for taxpayers.
|
Commonwealth Budget 2010-11
The Commonwealth Budget for the financial year 2010-11 was released on 11 May 2010. Key features include:
- Raising the effective tax-free threshold
- 50% discount on up to $1,000 of interest income
- Standard deduction
- Resource Super Profits Tax from 1 July 2012
- Company tax rate cuts
- Instant asset write off for small businesses
- Increasing the super guarantee
- Changes to contributions tax
|
Australia's Future Tax System Review
The Government released the Australia's Future Tax System Review (the Henry Review) on Sunday 2 May 2010. The Review is available to download on the Treasury website. The Government's initial response is available on the Future Tax website.
|
Overhaul of Financial Advice
The Government announced reforms to financial advice designed to tackle conflicts of interest that have threatened the quality of financial advice that has been provided to Australian investors, and the mis-selling of financial products that culminated in high profile corporate collapses such as Storm Financial, Opes Prime, and Westpoint.
|
Minister says Financial Planners do offer what amounts to tax advice
Following consultation with the community and industry across Australia, the Assistant Treasurer, Senator Nick Sherry, has announced further details of the coverage of the tax agent services regime to:
- in-house" advisors;
- custodians; and
- holders of Australian Financial Services licenses (AFSL) providing financial planning services.
|
High Court in Bamford approves proportionate approach and the primacy of the trust deed in determining income of the trust estate
What is the issue?
What construction is to be given to:
- the expression "that share" in s 97(1) in circumstances where the entitlement of beneficiaries is not to fixed proportions of the income of the trust estate but, as to some beneficiaries, to specific amounts and, as to another beneficiary, to the residue?
- the phrase "that share" in par (a)(i) of s 97(1), which links the preceding identification of present entitlement to "a share" of the income of the trust estate to the defined expression "the net income of the trust estate"?
|
The ATO on the impact of UPE's and their treatment
What is the issue?
The draft Ruling identifies when the Commissioner will take a corporate beneficiary with a UPE as having made a loan to a trust.
|
When is stolen money a deduction?
What is the issue?
Was the money, that the taxpayer transferred to Hong Kong and which was misappropriated, the money that was included in the Taxpayer’s assessable income?
|
Agreements for management rights of accommodation need reconsideration
What is the issue?
Were any of four categories of supplies, made in relation to the operation of accommodation, taxable supplies:
- South Steyne’s supply of 83 Hotel rooms to the Management entity by way of a lease (the “Grant Category”)?
- South Steyne’s sale of the 83 Hotel rooms to MBI (the “Sale Category”)?
- The sale of the Hotel Rooms to MBI subject to the continuation of the leases of those rooms to the Management entity (the “Continuation Category”)?
- The Management entity’s supply of accommodation in Hotel room 403 to Emily Young as a guest (the “Accommodation Category”).
|
Special leave in Bamford – Harmony in the High Court
What is the issue?
Special Leave Application granted.
|
Were the outgoings in relation to a course of study productive of income?
What is the issue?
Were the outgoings incurred in relation to a course of study:
- incurred at a point too soon?
- productive of income?
|
Capital Allowances: tax break - asset not part of a set
Issue
Are the computer and printer that are used together in the taxpayer's business 'a set of assets' for the purpose of subparagraph 41-10(4)(b)(i) of the Income Tax Assessment Act 1997 (ITAA 1997)?
|
Capital Allowances: tax break - expenditure in respect of the construction
Issue
Is the capital expenditure incurred by the taxpayer after it has committed to the construction of its assets 'expenditure in respect of the construction' of the assets for the purposes of subsection 41-25(3A) of the Income Tax Assessment Act 1997 (ITAA 1997)?
|
Legislation to facilitate transition to the New Tax Agent Services Regime passed by Parliament
The Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill contains the provisions that will facilitate a transition from the old to the new regime.
|
New National Tax Practitioners Board announced
The national board will replace the existing state-based boards from 2010. The board members are Mr Dale Boucher PSM (Chair), Mr Matthew Addison, Ms Cynthia Coleman, Professor Gordon Cooper AM, Mr Roger Cotton, Mr Chris Doogan AM, Mr Michael Evans, Mr George Fox, Ms Miriam Holmes, Professor Dale Pinto & Mr Russell Smith.
|
The ATO approach to distributions of trust income after Bamford
What is the issue?
What approach will the ATO take to certain trust issues involving Division 6 pending resolution of the Bamford litigation?
|
|
The Assistant Treasurer, Senator Nick Sherry, released the post-consultation details of the 2009-10 Budget measure to tighten the non-commercial loan rules.
|
Exposure Draft Tax Agent Services Regulations Released
The Exposure Draft Regulations and explanatory material outline in detail what will be required from tax agents under the new regime.
|
Is a partnership an entity for the purposes of the small business CGT concessions?
What is the issue?
Is a partnership an ‘entity’ within the meaning of that term as used in s 152-15(a)(ii) (as it operated during the 2003 year of income?
|
Interest deductibility on capitalising hybrid or discretionary trusts?
What is the issue?
Is interest on a loan fully deductible under section 8-1 if the borrower settles the on trust to benefit the borrower and others?
|
Was the SMSF able to retain its status after in house asset breaches?
What is the issue?
Was the SMSF able to retain its status as a regulated after in house asset breaches?
|
