Daily Update – 22 November 2021
ATO warning re director penalties
The ATO has reminded directors (and former directors) of companies that if the company does not meet its PAYG withholding, GST or SGC obligations, the ATO may recover these amounts from the director personally. It also reminds persons who are about to become a director of a company, to check for any such unpaid or unreported liabilities. This is because If you become a director and the company has such outstanding liabilities, you will become personally liable for a penalty equal to these amounts – subject to a 30 day period to attend to them or to appoint an administrator or to wind up the company.
Draft legislation released to modernise business communications
Treasury has released exposure draft legislation to modernise business communications by improving the technology neutrality of Treasury portfolio laws. It is proposed to provide greater flexibility for businesses, individuals and regulators when communicating with each other. The exposure draft comprises, among other things, proposed amendments that: expand the scope of the global regimes that allow documents to be signed and sent electronically in the Corporations Amendment Bill; allow notices published in newspapers to be published in any accessible and reasonably prominent manner across Treasury portfolio laws; and update payment provisions in Treasury legislation to ensure electronic payments can be made.
NSW Revenue: Website security and browser updates
NSW revenue has advised that it is making a number of changes to its website applications and infrastructure to improve security and performance. It states that you will need to upgrade your browser to one of the following versions (or higher): Chrome 38; Firefox 27; Internet Explorer 11 or Safari 7. It also states that using an older browser version will mean that you will no longer be able to see or use its online services, but that if you are already using an updated browser, then you will not need to do anything.
ATO draft instrument: military invalidity benefits and super payments
The ATO has released a draft instrument MS 2021/D3 which specifies a proposed alternative method for calculating the tax-free component and taxable component of a superannuation benefit paid to certain former ADF members during the 2021-22 financial year pursuant to s 307-125 of the ITAA 1997. The alternative method involves the tax components of the superannuation benefit being taken to bear the same proportion to the amount of the corresponding components of the superannuation income stream. It will apply to superannuation benefits paid under relevant Defence Force retirement and benefits legislative provisions.
Daily Update – 01 December 2021
TPB: New CPE policy from 1 July 2022
The Tax Practitioner’s Board (TPB) has released details of its continuing professional education (CPE) policy for tax and BAS agents that will commence from 1 July 2022. Some of the key changes from the current policy are: Tax agents should complete a minimum of 120 hours of CPE over a 3-year period (an increase from 90 hours over a 3-year period in the current policy); BAS agents should complete a minimum of 90 hours of CPE over a 3-year period (an increase from 45 hours over a 3-year period in the current policy); Both tax and BAS agents should complete a minimum of 20 hours of CPE each year (increased from 10 hours per year for tax agents and 5 hours per year for BAS agents in the current policy). Also, CPE records should be retained for a period of five years from the end of the CPE period. For full details see here.
ATO: Treatment of compensation from financial institutions
The ATO has advised that if you receive a compensation payment from a financial institution, the tax treatment of the payment will depend on what the compensation payment covers. It states that a person can personally receive compensation from a financial institution because they received advice from them that was found to be inappropriate or paid for advice that you did not receive. In this regard, the ATO states that the tax treatment of the compensation depends on what the compensation is being paid for and how the investor holds (or held) their investments. For further details see here.
TPB: Q&As released re “Knowing your obligations”
Following the Tax Practitioner’s Boards (TPB) recent webinar on Know your obligations, it has compiled a series of Q&As arising from the webinar. The Q&As cover a range of topics, including: compliance; professional indemnity insurance; registration; engagement letters; and supervision and control.
ATO Warning re impersonation scams
The ATO has again warned of scams – this time issuing examples of recent ATO impersonation scams. It advises that if you or your client thinks a phone call, SMS, voicemail or email claiming to be from the ATO is not genuine, do not reply to it. Instead, you should either phone the ATO on 1800 008 540, or go to its “Verify or report a scam” website page and report it.