Holiday home
Recently the ATO issued a media release in which they have committed a greater focus on the deductions claimed by individuals for holiday homes. This focus is centred on whether these properties are genuinely available for rent in the periods which are indicated by taxpayers.
Legal Expenses
A recent private ruling has highlighted instances where legal expenses are considered deductible under the general provisions of ITAA 1997 s 8-1. Under the provision, a deduction is allowed for legal expenses which are incurred in order to earn assessable income or in carrying on a business.
Tax Residency
The Full Federal Court of Australia has overturned a previous court ruling that effectively made an individual a tax resident of Australia in the 2011 income year. During that year, the individual in question was living in Bahrain and working in Saudi Arabia, however, had family and financial investments in Australia.
Foreign Bank Account Being Targeted By the ATOHistorically, if you have money in the foreign bank account, it was regarded as a safe haven. Now things are changing. This is the first time that the ATO has been given access to information on Swiss bank accounts, which is a noted tax haven.
More compliance risks for couriers and the commercial cleaning industry.Taxable Payments Annual Report will catch how much you earned during the year without your tax returns being lodged. To avoid a tax audit, keep the records of your income! Contractor payments matter now.
Tax Audit – The beginning of a nightmare.If you received a letter from the ATO with “Please explain” type or informing they are undertaking a “Tax Audit” for you and/or your business, what you need to do first is “being calm”. A panic mode does not help at all. Then do follow steps below in a timely manner.
small business tax concession
The small business entity turnover threshold will be increased from $2m to $10m from 1 July 2016. The increased threshold means businesses with an annual turnover of less than $10m will be able to access existing small business income tax concessions including:
Buying a property from a foreign resident? Then you may have to withhold the money before you pay to the seller.The new withholding applies to:
The ATO’s Position on Panama Papers – Time to consider a voluntary disclosure!Government officials from around the world have called on the OECD to convene a special project meeting to explore possibilities of co-operation and information sharing, identify tax compliance risks and agree on collaborative action, in light of the Panama Papers revelations.
