Legislation has recently been introduced effective for income years commencing on or after 1 July 2014 (the 30 June 2015 tax year for 30 June taxpayers) which amend the thin capitalisation rules such that: the maximum statutory debt limit (safe harbour debt limit) has been reduced from 3:1 to 1.5:1 (on a debt-to-equity basis) for
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We refer to our Client Alert No 24, the link to which is shown below, in which we discussed the ATO’s views on dividend washing. http://www.blazeacumen.com.au/client-alerts/client-alerts-issue-24.html The ATO has made a further statement regarding dividend washing which can be found at the following link: https://www.ato.gov.au/Media-centre/Articles/ATO-targets-dividend-washing/ The ATO has now indicated that from mid-August 2014, it
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What is SuperStream? SuperStream is a major government reform aimed at improving the efficiency of the “back office” of superannuation. The main purpose of SuperStream is to ensure employer contributions are paid in a consistent, timely and efficient manner to a member’s account. It requires contributions to be made electronically with linked data and payments.
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As another financial year comes to a close taxpayers should be mindful that the law requires you to keep all documentation which relates to your capital gains tax assets for at least five years after their disposal. The ATO regularly conducts audits, including business record keeping audits and substantiation audits, over a wide range of
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Download the Tax Bulletin – Federal Budget Summary 2014 The Federal Budget for 2014/15 was handed down by the Treasurer, Mr Joe Hockey, at 7.30 pm (AEST) on 13 May 2014. Highlights The key tax and superannuation highlights from the Budget are summarised below. A detailed Chartered Accountants summary can be found at the link
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On 30 April 2014 the Commissioner of Taxation issued Tax Determination TD 2014/10, a copy of which can be found at the following link, http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD201410/NAT/ATO/00001 which advises that the general anti-avoidance provision contained in Part IVA of the Income Tax Assessment Act 1936 may apply to “dividend washing schemes”. Broadly, the ATO has expressed the view that
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On 27 March 2014 the Commissioner of Taxation announced an Offshore Voluntary Disclosure Initiative entitled “Project DO IT” whereby taxpayers are invited to voluntary disclose to the ATO any undisclosed foreign income or foreign capital gains or previously over claimed tax deductions in relation to foreign income. In its announcement the ATO comments that increased
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Legislation was introduced as part of SuperStream to standardise the way employers pay and report superannuation contributions. From 1 July 2014, employers with 20 or more employees will be required to use the Data and Payment Standard (the standard) when making superannuation contributions. The standard requires payment and data to be sent electronically. This will ensure
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Legislation has recently been introduced which may require taxpayers who currently pay PAYG instalments on a quarterly basis to pay them monthly. The legislation received Royal Assent on 29 June 2013 and comes into effect on 1 January 2014 at the earliest but has staggered introduction dates depending on the turnover of the particular entity
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From 1 July 2013, individual tax returns with an expected tax refund that are lodged using the electronic lodgement service (ELS) will be required to nominate an Australian bank account to receive the refund. The details required include Account name, BSB, and Account number. Joint bank accounts and trust accounts are also acceptable. (Refer link: http://www.ato.gov.au/General/Enquiry-hot-topics/In-detail/Tax-professionals/EFT-refund/).
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