5 minute tax updates: October 14 – 18

The tax agent and BAS agent portals are shutting soonGrandfathered commissions set to endASIC relief from financial adviser compliance scheme obligationsLodgment due date concessionsATO work in progress: Trust splittingTax outcomes from cross border related partiesExpansion of the RTP schedule to large private companiesGlencore transfer pricing case: ATO appealsASIC releases factsheet on establishing SMSFsOECD proposal on

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SMSFs – Non-arm’s length income

A superannuation fund pays the top marginal tax rate on “non-arm’s length income”.  This video discusses a case recently decided in the Administrative Appeals Tribunal that concerned whether a private company dividend received by a superannuation fund was non-arm’s length income.  The case is GYBW v Commissioner of Taxation.

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Tax Practitioners Board

The Tax Practitioner’s Board has released its annual report.  In this video John Jeffreys, Tax and Super Australia’s Tax Counsel, comments on the key issues in the report.  He also comments on the pressures on tax agents and his recommendation for the type of relationship that should exist between the Tax Practitioner’s Board and tax

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Working holiday makers

The Federal Court recently decided that a UK citizen was a resident of Australia and, although holding a working holiday visa, was not subject to the working holiday maker tax rates.  This is because the non-discrimination article of the Australian/United Kingdom Double Taxation Agreement applied to the taxpayer.

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STP proves time‐consuming, costly and onerous for micro employers

21 October 2019: Tax & Super Australia (TSA) says the ATO should strongly consider exempting micro employers from having to use single touch payroll (STP) after a survey of its members that found that STP has been costly, time-consuming and overly onerous for their smaller business and micro employer clients. Further, many members were unconvinced

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5 minute tax updates – Sept 23-27, 2019

SMSF status change if returns lateUse of cash to be restrictedOpt-out insurance change to SIS actSocial security payments offshore to require proof of lifeSG opt-out, NALI expands, LRBA share included in TSBEmployee share scheme concession access tightensLCT refunds; Interest on ATO super; Redundancy concession age aligns to pension ageAustralia-Israel DTA initiatedNo breach of SIS act

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Tax residency – Working holiday maker

The Federal Court recently decided a tax residency issue in relation to a working holiday maker that visited Australia from the USA.  The taxpayer argued that she was a resident of Australia.  The case demonstrates the difficulty that tax agents often have with deciding whether an individual is a tax resident of Australia.

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Foreign Residents: Main Residence Exemption, tax planning (part 2)

The Federal Government has reintroduced the legislation to deny foreign residents of Australia the main resident exemption.  In this 2nd video on this topic,  John Jeffreys discusses issues with the new law and planning techniques to help reduce capital gains tax made by foreign residents on the sale of their Australian main residences.

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Foreign residents — Main residence exemption (part 1)

The Federal Government has reintroduced the tax legislation that denies the main residence exemption for foreign residents of Australia.  This controversial legislation, if passed,  now contains some carve-outs when certain “life events” occur to the taxpayer or their family.  Also, the transitional provision that prevents the legislation operating has been extended to 30 June 2020.

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