tax

5 minute tax updates: November 11-15

Car parking fringe benefits ruling to be updatedNew draft determination on CGT cost base and assumed liabilityTax debts and deceased estate treatments to be reviewed by Inspector-General ATO extends assistance to drought affected regionsWill using more contractors mean future TPAR requirement?Client a trustee of closely held trust? Which rules apply?Employers can cop penalties and charges

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Date set for shut down of tax agent and BAS agent portals

The ATO has announced that the date for the shut down of the portals will be 29 November. Specifically at 11.30pm AEDT. The earlier than expected timing is, the ATO says, to clear the decks before implementing its “Activity Statement Financial Processing” project (ASFP), the name it has given to a system enhancement that aims

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To claim vehicle expenses, odometer records are not strictly “set-and-forget”

The rules for individuals making claims for vehicle expenses (which apply to both employees and non-employees) state that taxpayers are required to substantiate claims for a vehicle that is used for income producing purposes.  Clients should be reminded that unlike other work-related expenses, the $300 substantiation threshold does not apply to claims made for car

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ASIC concerns lead to robo-advice tools being shut down

A Sydney-based AFSL holder has agreed to close some of its digital advisory offerings after ASIC made approaches to it with concerns over the quality of advice distributed by the robo tools. The online robo tools concerned were providing automated financial product advice using algorithms and technology with no flesh-and-blood advisers involved. The areas of

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Omnibus tax integrity bill passes both Houses with amendments

There is a bill that has just been passed by both houses pf Parliament, the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019, that could be described as an omnibus bill — a quick look at its table of contents can confirm this. The bill met with amendments in the

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Deductions for pokies operator firmly rejected by High Court

A unanimous decision by the High Court has allowed an ATO appeal against a previous decision to allow a pokies operator in Victoria deductions for expenditure paid to acquire gaming machine entitlements. The respondent in the High Court case, the sole beneficiary of a trust operating the Daylesford Royal Hotel, had been successful in an

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Natural love and affection gets a debt make-over

The ATO withdrew its long-standing Interpretative Decision 2003/589 in February this year, which dealt with circumstances where a company can forgive a debt owed for reasons of “natural love and affection” and not trigger consequences under the commercial debt forgiveness rules. Little reason was given for the withdrawal of ATO ID 2003/589, other than declaring

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Unpaid “crypto” tax another big target for ATO revenue collection

For some time now, the ATO’s data matching arm has been collecting bulk records from Australian cryptocurrency designated service providers. It follows a growth in Australian taxpayer participation with bitcoin and other cryptocurrency assets over recent years, with estimations from the ATO that between 500,000 to one million local taxpayers (including SMSFs) have invested in

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5 minute tax updates: 30 Sept – 4 Oct

Every (yes, every) return to be ATO-scrutinisedLove and affection re-think with commercial debt forgivenessStatement of tax recordNo discretion to remit superannuation excess transfer balance taxResidential vacancy fee: Annual return help, foreign ownersRetirement income review: details revealed PAYGW for staff in foreign service equalised through new admin instrumentTax debt relief appeal based on “serious hardship” not

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