ATO

The PLS is looming larger on the horizon

The ATO’s new practitioner lodgment service (PLS) is replacing its incumbent electronic lodgment service (ELS) as the primary lodgment channel (which will be “turned off” at the end of March 2017). Lodgments made using PLS will need to be made with standard business reporting (SBR)-enabled software packages. The PLS is looming larger on the horizon

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Home office deductions: What substantiation will the ATO accept?

Home office expense claims are subject to the same general substantiation requirements as other deductions – that is, records must be kept for five years. But in practice, full compliance with the substantiation rules may be difficult. It may be simple to keep a receipt for a printer purchased for a home business, but not

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ATO lets the cat out of the bag on what attracts its attention

There are certain behaviours, characteristics and tax issues that the ATO admits will attract its attention. ATO lets cat out of bag on what attracts its attention But as it is more interested to see taxpayers get things right rather than the bother, and expense, of chasing down every misdemeanour, the ATO has spelled out

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What your clients need to know if they ask for a private ruling

That the ATO has taken the tax practitioner sector’s feedback about private rulings seriously is to be commended, however just in case clients hear about the initiative and think this translates to “open slather”, there are still some sober facts that taxpayers need to be reminded of when it comes to applying for rulings from

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Modernising the ATO’s existing public rulings

The ATO has produced a large number of public rulings over many years. Although most are current, many have not been updated in a very long time. To address this situation it has announced a program of modernisation of its database of rulings under its new “advice under development” program. This initiative allows practitioners to

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ATO improves and streamlines private ruling applications

During one of its regular reviews of private advice, the ATO says it discovered that tax practitioners have tended to spend a lot of time drafting proposed rulings, which ATO staff then subsequently revise and/or amend. Responding to practitioner feedback, the ATO has decided to ramp up its efforts to streamline the process. It says

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5 tips to get home office deductions right

Your client might be sick of the daily commute, or want more flexibility of hours – or it could be that they have a talent or skill that they trust will translate into a fulfilling career in their own business. Or it could just be that the idea of working from home seems to offer

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Top 5 Division 7A watch-outs

The top 5 Division 7A watch-outs are as follows. 1/ Transaction caught by Division 7A Division 7A will arise if transactions fall into the following three categories, for a shareholder or shareholder’s associate: certain loans from a private company, certain payments from a private company, and forgiveness of a debt owed to a private company.

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ATO not doing the best on revenue collection, says national auditor

The Australian National Audit Office (ANAO) has released a report which indicates that while the ATO may have indicated that hundreds of millions of dollars in tax revenue was being taken in, the actual amount may have been overstated. The new report by the ANAO found that the ATO had on at least one occasion over a

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