The ATO has advised that it is writing to businesses in the building and construction industry who have not lodged their 2013-14 Taxable payments annual report. It said the letter will generally be sent to businesses and will remind them that the report is now overdue. Taxable payments annual reports were due by 21 July. The…
With just under a month to go until Project DO IT closes on 19 December 2014, the Tax Office has provided some further guidance on dealing with offshore structures to qualify for the benefits available under Project DO IT. One of the key eligibility conditions requires a taxpayer to ensure that their offshore structure is brought within…
According to the ATO and its latest statistics, almost 2,500 businesses in the Geelong (Vic) region and over 700 businesses in the Wagga Wagga (NSW) region, may be deliberately hiding income to gain an unfair advantage over their competitors. ATO Senior Assistant Commissioner Michael Hardy said the ATO has identified these businesses as potentially being involved in…
The ATO on Tue 18.11.2014, issued a gazette notice advising that it will acquire details of entities share registries for the period 20 September 1985 to 30 June 2016 from the following sources: Link Market Services Limited; Computershare Limited; Australian Securities Exchange Limited; Boardroom Pty Ltd; Advanced Share Registry Services Pty Ltd; and Security Transfer Registrars Pty Ltd. The…
In a recent address to the Tax Bar Association, the Tax Commissioner said the ATO was taking “a fresh look” at its compliance approaches. Given that the vast majority of taxpayers willingly comply with their obligations, Mr Jordan said it was logical that the ATO should focus more on encouragement and support rather than deterrence and…
The Tax Office has reassured taxpayers that disclosing under Project DO IT will not give them a “red flag”. Project DO IT offers benefits to taxpayers who bring their undeclared offshore income and assets back into Australia’s tax system by 19 December 2014. The ATO said feedback had raised taxpayer concerns that if they disclose they will…
Under Div 7A of the ITAA 1936, certain amounts paid, lent or forgiven by a private company to shareholders or their associates may be treated as being a deemed dividend for tax purposes, subject to some exclusions. However, the Commissioner has a discretion to disregard this outcome if the deemed dividend arises as a result of an honest…
On 31 October 2014, the ATO released ATO ID 2014/32 – Is a term deposit a qualifying forex account? [FJM note: “No”. A term deposit is not a qualifying forex account for the purposes of Division 775 of the ITAA 1997. A ‘qualifying forex account’ means an account that is denominated in a particular foreign currency and…
The ATO on Wed 26.11.2014, released the following Class Rulings: CR 2014/94: FBT: employers of employees who take out a health insurance policy under a Health Link Consultants Employee Health Plan; CR 2014/95: Lend Lease Corporation Limited Capital Reallocation; and CR 2014/96: Multiplex Development and Opportunity Fund – Return of capital. The ATO also issued…
The ATO on Wed 19.11.2014, issued the following Class Rulings: CR 2014/92: Expiry of sub-leases: RQYS Nominees Pty Limited as trustee for the RQYS New Marina Trust; and CR 2014/93: Research and development: membership funding for the Australian Coal Association Research Program. The ATO also issued an Addendum to PR 2008/11 (AIL Almond Grower Project…