Question:
Insolvent taxpayers owe $5.3 billion
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
The 2011 Tax Office Annual Report shows that tax debts owed by insolvent businesses and private individuals increased by 35% to $5.3 billion during that year.There were 1,055 wind-up notices issued which is nearly double the figure of 492 wind-ups during the previous year. Personal bankruptcies initiated by the Tax Office numbered 452 up 16% on the previous year.
The Tax Office does not report on the number of Director Penalty Notices issued and consequently these figures may seem understated. Where a Director receives one of those notices, she has a choice to either put the company into voluntary administration, pay the debt or seek a payment arrangement with the Tax Office or face personal liability for the debt. The statistics do not count voluntary administrations arising from a notice.
Smartcompany.com.au, 2 November 2011, Debt owed by ATO by insolvent entities soars 36% to $5.3 billion as tax man’s crackdown continues.