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taxInsight - 2011/01 – September

2011/01 – September from taxInsight

Could China’s tight money crash Australian mines?

The Chinese Government has significantly tightened monetary policy this year leaving China’s private sector, state–owned business sector, iron ore traders, massive low–income housing scheme and railways all short of cash. If China hits the brakes too hard, will it damage Australia’s exports of coal and iron ore with flow-on effects to the mining sector’s investment …

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Is it a bird, is it plane, no … it’s SuperStream

In March 2010 the Government released a proposal called SuperStream to introduce an industry wide electronic data and payment transfer system for superannuation funds but excluded self-managed super funds from the scheme. A super fund professionals’ association has now called for self-managed super funds to be included …

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New fix for super cap breaches

The Government has released a consultation paper proposing that where someone breaches their concessional contributions cap by up to $10,000 and for the first time, they can have the excess refunded to them and pay …

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Tribunal ruling: part-time share-trading business

A case before the Tribunal was been ruled against the Tax Office finding that the taxpayer did in-fact conduct a share-trading business during the 2008 financial year … despite the taxpayer having a full-time position as a CEO, not selling many shares in that year, not having a …

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Non-resident despite knowing of eventual return to Australia

The Tribunal has found against the Tax Office which contended an engineering contractor was an Australian tax resident between 1997 and 2002 despite working in the Czech Republic, Turkey, South Africa, USA, Germany, Thailand and China and making his home in the Philippines. He left Australia in 1997 and did not include his foreign income in his Australian income tax returns for those years because …

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German agreement to tax undisclosed Swiss bank accounts

Subject to executive and legislative sign off, the Swiss and German Governments have agreed on a deal to impose tax on undisclosed Swiss bank accounts held by Germans. A similar deal between Switzerland and the UK is pending …

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Tax Office holds up 49,000 tax returns

During August, the Tax Office said that it had stopped over 49,000 tax returns which, in total, claimed around $190 million of refunds because they believe that there were overstated claims or that the return was potentially fraudulent …

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Finalise trust distribution minutes by 30 June

A change to the Tax Act purportedly to allow streaming of capital gains and franked dividends became law at the end of June this year. The practical implication of the new law is that trust distribution minutes …

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Benchmark interest rate

The Tax Office has released a determination announcing the benchmark interest rate for Division 7A loans to be …

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Luxury car limit

The Tax Office has released a determination announcing the luxury car limit of $57,466 for the 2012 year which …

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ASIC company fees lifted

Each year the Australian Securities and Investments Commissions (ASIC) reviews and indexes their charges for various services in regulating companies. Here are some fee changes for the 2012 financial year …

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Key tax events for 2011 shareholdings

The Tax Office has published a document titled Key events for Australia shareholders 2010 – 11 which contains links to class rulings about demergers, share buy-backs, creation of new …

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Reverse mortgage protection

A draft bill was released in August giving better protection for seniors taking on reverse mortgage loans and capping the bank’s recovery amount to the true market value of the property mortgaged.

Where someone has retired they may be asset rich and income …

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Statutory tax advice privilege

The Rule of Law Institute of Australia has called for the Accountant’s Concession to be replaced with a form of tax advice privilege between the accountant and client to be made into law. The Accountant’s Concession provides guidelines to Tax Officers to protect confidentiality of certain tax advice correspondence between accountants and their …

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