On a trust return, when a death benefit employment termination payment (ETP) and/or a superannuation lump sum is paid to a client’s deceased estate: do not record these amounts as distributed to beneficiaries of the trust; include the assessable amounts at item 54 Statement of distribution at ‘Income to which no beneficiary is presently entitled’.…
The ATO is considering its position on the recent transactions of some public companies involving franked distributions (by way of special dividends or otherwise) which are funded by equity raisings. We have some concerns about these types of arrangements and a taxpayer alert will be available soon. [ATO website] [LTN 73, 20/4/15]
The ATO has released details of its approach to wealthy individuals and their private groups. The ATO says it was taking a “prevention-before-correction approach and ramping up face-to-face engagement with key taxpayers”. Acting Second Commissioner Michael Cranston said most wealthy individuals and their private groups do the right thing; however, some choose to avoid tax,…
Overview – This Taxpayer Alert describes arrangements where a private company with accumulated profits channels franked dividends to a self-managed superannuation fund (SMSF) instead of to the company’s original shareholders. As a result, the original shareholders escape tax on the dividends and the original shareholders or individuals associated with the original shareholders benefit as members…
The ATO, on Fri 17.4.2015, issued ATO ID 2015/9 (Superannuation Guarantee Scheme: attributed personal services income). The ID deals with the following question: Does attributed personal services income attract superannuation guarantee (SG) obligations on the part of the relevant personal services entity? The ID says no, except for actual salary or wages that are paid…
Treasury has published on its website the information released under FOI in relation to the Red Book (a brief prepared by Treasury for the returned Labor Government). Treasury says the Government is starting its 2nd term with an economy that is “performing strongly and approaching full employment”, but warns that it is not delivering in…
The ATO, on Wed 22.4.2015, issued the following Class Ruling and Product Ruling: CR 2015/28: Exchange of shares in Fiducian Portfolio Services Limited for shares in Fiducian Group Limited; and PR 2015/5: TFS Sandalwood Project 2015. [LTN 75, 22/4/15]
The ATO has released Product Ruling PR 2015/3 Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2018 — Flexi Professional. The ruling applies prospectively from 1 April 2015. [IT, 1/4/15]
The ATO has issued the following class rulings: Class ruling CR 2015/24 Income tax: Calliden Group Limited Scheme of Arrangement and Special Dividend. The ruling applies from 1 July 2014 to 30 June 2015, and Class ruling CR 2015/25 Income tax: Calliden Group Limited Scheme of Arrangement — Special Dividend — Participants of the…
This Determination, issued on Wed 22.4.2015, states that the fact a company has issued a debt interest to a listed property trust within the same stapled property group will not of itself be sufficient to form a conclusion under para 974-80(1)(d) of the ITAA 1997 that there is a scheme, or a series of schemes,…