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March 21, 2012
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Andrew Lovett

Question:

Fuel tax credits denied to sawmilling business

The Tribunal has affirmed the Tax Office decision to deny claims for fuel tax credits by a sawmilling business due to lack of records and dubious evidence from one of the taxpayers.
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Personal Tax
Business Insights
Tax Insights
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March 21, 2012
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Andrew Lovett

Question:

Question: child support

How does the Government calculate the amount I should contribute in Child Support?

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Q&A
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March 21, 2012
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Andrew Lovett
Lovetts

Question:

Question: travelling expenses

We are a motor vehicle dealership. If we were to fly a prospective buyer to the Sydney Motor Show for the day with one of our sales consultants, is GST applicable on the airfares, meals, taxis, etc? Or is it treated as non-deductible/non-GST expense? (i.e. an entertainment type expense).

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Q&A
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March 21, 2012
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Andrew Lovett
Lovetts

Question:

FBT - salary sacrifice

I have some questions relating to the provision of laptops to employees under a salary sacrifice arrangement. My questions are:1. Since laptops are FBT exempt, is the employer able to claim the GST on the purchase? 2. How would the purchase transaction be recorded? Should it be reflected as part of the salary deduction? 3. Would the cost of the laptop be reported on the employee’s year end payment summary?

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FBT
Q&A
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March 21, 2012
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Andrew Lovett
Lovetts

Question:

Question: superannuation guarantee

Employees of a local hotel are all casual. They work various hours during the week. Some are rostered to work on Saturdays and Sundays. Under their award, there is a penalty for Saturday and Sunday work of 150% which is the same as overtime.Should this penalty be dealt with as overtime (i.e. no super guarantee) or should it be deemed as a penalty and super paid on the amount?

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superannuation
Q&A
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March 21, 2012
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Andrew Lovett
Lovetts

Question:

FBT - minor benefits

The infrequent and minor benefits provided to employees are exempt from FBT. Are they tax deductible?

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FBT
Q&A
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March 21, 2012
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Andrew Lovett

Question:

March 2012 - A day in the tax life of ...

... previously on tax life ... The business had been on foot for over a year now and things were coming together with a long term financial plan. Sam’s 18 year old daughter Rachel had dropped her bombshell about wanting to take her boyfriend down to Melbourne with her when she went to University. Careful family negotiations were abating that problem.
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Tax Insights
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January 27, 2012
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Andrew Lovett

Question:

Trust TFN withholding tax and TFN reports

The Government and Tax Office have kindly provided yet another layer of bureaucracy for small businesses operating through trusts. Trustees are now obliged to withhold tax from distributions to beneficiaries if those beneficiaries have not provided their tax file number (TFN) and other personal details ...
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Business Insights
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January 27, 2012
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Andrew Lovett

Question:

Our View - providing a tax deduction for childcare, even if it is provided by a nanny, is a great idea

Chief Executive Women, an organisation of 200 female corporate highflyers including Ita Buttrose and Heather Ridout, called for the government Tax Forum … to review the opportunity and cost of tax deductibility of child care for Australia...
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Tax Insights
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January 27, 2012
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Andrew Lovett

Question:

Draft super ruling: borrowed funds to repair property

Super funds will now be able to use borrowed funds to repair a property purchased with a limited recourse borrowing arrangement. The Tax office has reversed its position on this in a draft ruling. Further, the super fund can use other monies (not borrowed) to ...
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Retirement Planning
Superannuation
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January 27, 2012
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Andrew Lovett

Question:

General and shortfall interest charges

The Tax Office interest charge for the October-December 2011 quarter have been released. GIC annual rate is 11.86% or ...
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Tax Insights
Business Insights
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January 27, 2012
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Andrew Lovett

Question:

Tax Office crackdown on tax debts

The lenient approach to debt collection taken by the Tax Office during the Global Financial Crisis has been discarded and replaced with a new hard-line. This follows a blowout in outstanding tax debts from 5% of revenue to 11% ($15 billion) last year. The new approach includes the early instigation of garnishee notices and windup proceedings ...
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Tax Insights
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January 27, 2012
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Andrew Lovett

Question:

New R&D laws: cash rebates for small businesses

New laws cleared Parliament in August. These provide a 45% refundable tax offset for businesses with group turnover less than $20 million undertaking research and development activities that meet the new eligibility criteria. A nonrefundable 40% offset is available for larger businesses including ...
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Business Insights
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January 27, 2012
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Andrew Lovett

Question:

Save Tax - main residence

The dwelling in which you live will be exempt from CGT if you own it. The term dwelling includes a flat, home unit, caravan, houseboat or other mobile home and includes the land on which it is built up to a maximum of 2 ha. If your spouse is living permanently separate and apart from you, you would each be entitled to ...
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Save Tax
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January 27, 2012
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Andrew Lovett

Question:

Tax Office continues chasing away foreign investment

In a new episode of the Tax Office/Myer float saga, the Federal Court granted orders for the Tax Office to serve a demand for $739 million on an Australian Director after the Tax Office made out a case that he was the local representative of a Dutch and Cayman Islands companies in the TPG group ...
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Tax Insights
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January 27, 2012
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Andrew Lovett

Question:

Clarks’ case: High Court refuses special leave for Tax Office appeal

We have previously reported on this case between Mr and Mrs Clark and the Tax Office. The High Court has refused to hear an appeal by the Tax Office. This case had previously been found in favour of the Clarks by ...
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Tax Insights
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January 27, 2012
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Andrew Lovett

Question:

Employee or contractor

The Tax Office have an employee/contractor decision-making tool on their website and are using it during the field visits to determine whether an arrangement is true contracting or actually an employment circumstance. They say they have detected false contracting arrangements in call centres, transport and logistics, retail, education ...
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Tax Insights
Business Insights
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January 27, 2012
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Andrew Lovett

Question:

Badges of business

A Tribunal ruling (previously reported in September 2011 taxInsight) found that the CEO of a services company was indeed conducting a business of share trading on a part-time basis. This decision allowed for claiming deductions because of the drop in value of shares during the global financial crisis and further clarified the factors to consider when assessing whether an activity is a business or mere academic pursuit or hobby ...
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Business Insights
Tax Insights

One idea, could help you save tax – let’s get creative.

Consulting Accountants  .  Taxation Specialists  . Business Improvement