Parliament has just passed legislation that requires local banks, on an annual basis, to provide detailed information to the Tax Office who will then automatically share that information with the relevant foreign tax authority where an Australian bank account is held by a foreigner or a company, trust or other entity that is controlled by a foreigner. The purpose of the new legislation is a global crackdown on people holding funds offshore and not declaring income to their home country tax authority. It is a multi-way, reciprocal arrangement with many national governments planning on gathering and cross-sharing information under the […]read news read article read question view tips
Foreign companies investing in Australia will have new obligations to co-operate with the Tax Office, and if they don’t keep the tax man happy they could face prosecution, fines and potentially be forced to divest the asset, according to Treasurer Morrison’s media release on 22 February. Significant foreign investment into Australia requires approval by the Foreign Investment Review Board (FIRB) and approvals can have conditions applied. The investor is required to comply with those conditions or face sanctions. The approval requirements depend on a number of factors including: Whether the investor is a foreign Government; The type of investment (agricultural, […]read news read article read question view tips
Foreign agricultural land owners must notify the Tax Office if they hold agricultural land, acquire new agricultural land or dispose of agricultural land. The new registration requirement came into force from July 2015 and all existing holdings must be registered by 29 February 2016. The requirement applies to all “foreign persons” and includes an Australian citizen living permanently overseas that may be considered a foreign person as they are not ordinarily residing in Australia. Foreign persons also includes foreign companies and trustees. Where there are multiple owners of an agricultural land holding, each foreign owner has an obligation to register. […]read news read article read question view tips
Question: I have just bought a house that I intend to rent out to a tenant. Before I do that, there are repairs needed including carpentry repairs to the deck at the back of the house, painting, replacement of the carpet and replacement of the dishwasher. Can I get a deduction for these repairs? Answer: Unfortunately, no you can’t get an immediate deduction for those items. However, you can claim depreciation for the new carpet and new dishwasher and you can claim the capital works allowance for carpentry repairs to the deck and also the painting. Explanation: As you have just bought the property, […]read news read article read question view tips
Question: Last year, we moved out of our home to relocate and signed an agency agreement and got the real estate agent to find tenants and set up a rental arrangement for the house. There are some repairs that really should be done to the house including carpentry repairs to the deck at the back of the house, replacement of the dishwasher, replacement of the carpet and painting of the exterior of the house. Can I get a deduction for the money spent on those items? Answer: For the money spent on carpentry repairs to the back deck and painting, you can get an immediate […]read news read article read question view tips
Under the US Foreign Account Tax Compliance Act (known as FATCA) Australian banks have provided details of over 30,000 customer accounts worth over $5 billion to the US Internal Revenue Service (IRS – the US equivalent of our Tax Office). These are accounts of US citizens and tax residents with Australian bank accounts. There is a wave of transparency measures being implemented world-wide. By 2017 close to 100 countries will be sharing non-resident data under the OECD Common Reporting Standard. The Australian Tax Office will receive data from the IRS about Australians with financial accounts in the US and will […]read news read article read question view tips
Log on to ASIC’s website – www.asic.gov.au and you can obtain information about how to make a complaint or report misconduct. This is divided into different categories, many of which must be dealt with by other organisations. But those matters which are within its responsibilities include troubles with investments, companies which have gone into liquidation or administration, shares, insider trading and operation of companies. It also carries regulatory responsibility for company auditors and financial planners. It has a very broad set of responsibilities. Will your complaint or problem be dealt with expeditiously? Probably not. The word around the traps is that ASIC doesn’t have the manpower to […]read news read article read question view tips
A recent Federal Court decision has made it abundantly clear that franking credits must be allocated to beneficiaries in the same proportion as the relevant dividends. The trustee of the Thomas Investment Trust had resolved to distribute the net income in proportions to an individual and a company. In a second resolution it resolved to distribute the franking credits in different proportions. The trustee then sought and obtained directions from the Supreme Court of Queensland that franking credits were to be dealt with by the trustee and could be distributed to beneficiaries in accord with those trustee resolutions. However in a later hearing the superior […]read news read article read question view tips
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