ATO alerts tax agents in relation to overdue client lodgments
The ATO has advised that on 23 February 2011, it began sending letters titled “Lodgment alert for your clients’ overdue documents” to most tax agents, highlighting clients (other than large businesses and super funds) with overdue lodgment obligations. Each letter lists the companies, trusts, partnerships and individual clients with either of the following: overdue income tax ...more
Tax experts challenge ATO on unpaid trust distributions; ATO agrees to test case
Four of Australia’s leading professional tax and accounting bodies (The Institute of Chartered Accountants in Australia, National Institute of Accountants, Taxation Institute of Australia and Taxpayers Australia), representing over 100,000 accountants and tax advisers, have united to call for sweeping reforms of the antiquated laws governing the taxation of trusts. The professional bodies believe the ...more
It's here! ATO releases final Practice Statement on Div 7A and UPE
On 14 October 2010, the ATO released its keenly awaited Practice Statement on Div 7A and trust entitlements, PS LA 2010/4. It is effective from 14 October 2010 and is lengthy, running to 218 paragraphs. The Commissioner said it provides practical ways on how to follow Taxation Ruling TR 2010/3, issued 2 June 2010. That ...more
Div 7A loans and trust entitlements – Taxation Ruling TR 2010/3
This Ruling, released on 2 June 2010, sets out the Commissioner’s views on when a private company with an unpaid present entitlement (UPE) from an associated trust is considered to have made a loan to the trust for Div 7A purposes. Broadly, the Ruling provides that the company will be considered to have made a ...more
Tax Office 2009-10 tax return forms, schedules and accompanying guides
The Tax Office has released the following tax return forms, schedules and accompanying guides: Business industry codes 2009-10 Capital allowances schedule 2009-10 CGT schedule 2009-10 Company tax return 2009-10 Consolidated groups losses schedule 2009-10 Consolidated groups losses schedule instructions 2009-10 Dividends and interest schedule 2009-10 Family trust election, revocation or variation 2009-10 Franking account tax ...more
The Bamford case: initial reactions from the tax industry
On 30 March 2010, the High Court unanimously dismissed the appeals by both the Commissioner and the taxpayers in Bamford & Ors v Commissioner of Taxation. It confirmed that it is correct to apply the “proportionate view” where the net income of a trust for tax purposes exceeds its accounting income. The Court also upheld ...more
New draft taxation ruling TR 2009D8 affecting Division 7A interests/
Some issues of concern re ATO Draft Ruling on Div 7A and UPE – by Tony Greco, Senior Tax Adviser, NIA The ATO’s release in late December 2009 of Draft Taxation Ruling TR 2009/D8 concerning Div 7A and the treatment of unpaid entitlements of a corporate beneficiary of a trust has certainly generated much interest. ...more
ATO to send letters to beneficiaries claiming deductions against trust distributions
During January and February 2010, the ATO says it is sending letters to selected taxpayers who are beneficiaries claiming deductions against distributions from discretionary trusts. Some tax agent clients may receive these letters. The letters include an outline of the Tax Office’s position about claiming these deductions and ask taxpayers to review their claims. The ...more
Tax guidance regarding employee share trusts
The Tax Office has released Taxation Determination TD 2009/3 to provide guidance on whether an employee who receives an option to acquire shares from an employee share trust becomes the holder of a ‘legal or beneficial interest’ in the company.
CGT issues for beneficiaries – asset disposal
What are the CGT consequences when an individual passes away leaving a life interest in the income of his estate was granted to his wife with his two children as equal remainder men beneficiaries, and the wife then dies?
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