taxInsight - 2011/03 – November

2011/03 – November from taxInsight

Our View – More thoughts on China’s economy and its effect on Australia

Commentators are suggesting an eventual decrease in demand for raw materials over coming years. Will this see a correction to the two speed economy?  In September taxInsight we discussed some possible challenges in China’s economy and a report in the Australian Financial Review about a possible impact on the Australian mining industry in the event of a significant tightening of …

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Save Tax – CGT 15 year exemption

A full exemption from CGT applies to the disposal of a small business asset held continuously for 15 years. You must be at least 55 years and intend to retire or else be incapacitated; you must pass the $6m net asset test or the $2m aggregated …

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Tax on new housing at 44%

The Housing Industry Association says that taxes comprise 44% (or $268,000) of the cost of new housing in New South Wales and 30% of the cost of new housing in Brisbane and Melbourne.  Taxes on new housing include stamp duty, infrastructure charges from local councils and …

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Bruton Holdings: Court rebuffs Tax Office on costs

The Full Bench of the High Court has overturned hard-ball tactics on costs by the Tax Office in a case known as Bruton Holdings.  There are provisions in the Corporations Act that allow a corporate trustee to be reimbursed for its expenses from …

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Grow Business – boost sales with the psychology of colour

Colours have immediate effects on our thoughts, feelings and actions. Carefully select combinations of colours elicit the desired thoughts and actions;  black for authority, white for purity, and the “safety” of bright light; grey is for …

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More red tape for self-managed super funds

The Government plans to increase regulation of self-managed super funds detailed in its Stronger Super announcement in September.  It has announced support for a long list of changes including giving the Tax Office power to issue administrative penalties payable from the …

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Plan Succession – family business equity – bloodlines

If equity in the family business should only flow in bloodlines (spouses of family members may not own equity), you can implement a compulsory buy/sell agreement where the spouse …

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The ridiculous cost of our tax system

Wow! Jessica Irvine of the Sydney Morning Herald estimates the cost of complying with our tax system at 2.1% of our Gross Domestic Product (or equates that to 12% of the tax revenue collected). On that basis and noting that for the year ended June 2011, the Australian Bureau of Statistics measures our GDP at $1.39 trillion, the cost of tax compliance in Australia is $29 billion …

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More businesses collapse as ATO applies the pressure

In the three months to 30 September, creditor-initiated Court liquidations were up by nearly 34% and receivership appointments up by 13%. Very high numbers of director-initiated corporate insolvencies were also the result of …

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Director penalty regime to be extended

If a company doesn’t remit PAYG Withholding, those who were directors of the company at the time of the failure can be personally liable for a penalty equal to the unremitted PAYG. The Tax Office must first serve a Director’s Penalty Notice (DPN) …

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Protect Assets – main residence in spouse’s name

Operating a business exposes the owner to risks including statutory penalties, business debts and common law damages. Holding assets in the name of a spouse…

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Government imposes retrospective Director Penalties

Breaching the convention not to process retrospective legislation changes that are damaging to tax payers, the Government has legislation before parliament to change the date of issue of Director Penalty Notice…

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Reportable tax position: Dob yourself in

For 2011/12, large companies might be selected by the Tax Office to complete a Reportable Tax Position Schedule where they must disclose their most contestable and material tax circumstances…

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Generate Cash Flow – cheque’s in the mail

It’s the classic excuse for a delayed payment from one of your customers: The cheque is in the post!

You can respond immediately by asking…

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