On Wed 28.8.2019, the ATO issued Draft Taxation Determination TD 2019/D5 on what expenses are taken into account in determining whether a company meets the requirements of an early stage innovation company (ESIC). See below for further detail about the draft determination. FJM 28.8.19 [Tax Month – August 2019]
In this case, all the income derived from a consultant’s skills, but split between the consultant and his wife, via a third party trust arrangement, was assessable to the consultant, as his ‘ordinary income’ and as ‘personal services income’. See below for further detail about the case and a link to the report. FJM 28.8.19…
On appeal, the Full Federal Court has upheld (by majority) that a decision that a taxpayer was not entitled to a full foreign income tax offset (FITO) for US tax paid on the sale of investments, as only half the capital gain had been included in his assessable income although there was an ancillary DTA…
ASIC banned a NSW Mortgage broker from providing financial services – as a result of applying for 60 SMSF loans in the wrong name. The ban was for 3 years but the AAT reduced that to 18 months. See below for further details about the wrongdoing and the result. FJM 28.8.19 [Tax Month – August…
The Full Federal Court has dismissed an appeal against a decision confirming an ATO application for summary judgment in respect of a director penalty notice (DPN) liability of almost $160,000. There is an important lesson to be learnt here about whether the company should pay (rather than the director pay the DPN amount) and if…
The Government introduced the Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019 on 4 July 2019, to effect amendments that would require insurance, in superannuation funds, be provided on an opt-in basis for: (i) account balances less than $6,000; and (ii) members under 25 years old – commencing on on or after 1 October 2019. See related Tax Technical article…
The Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019 was introduced on 4 July 2019 (and at the time of writing, had not progressed past that point). It proposes to require insurance within superannuation be provided on an opt-in basis for: (i) account balances less than $6,000; and (ii) members under 25 years old. On Tuesday 23.7.19, the…
The Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2019 was introduced in the House of Reps on Wed 24.7.2019 (and, at the time of writing, had not progressed pass first reading stage). It re-introduces measures in the similarly named 2018 Bill (which lapsed when Federal Parliament was prorogued for the Federal election). See…
The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019 – Schedule 7, will ensure that that the amount of salary an individual sacrifices to employer superannuation contributions, does not reduce the earnings base on which SGC contributions are calculated and that the employer sacrifice contributions can’t be used to satisfy…
On 19 August 2019, the Federal Treasurer: Josh Frydenberg issued a press release setting out his Government’s ‘road map’ for introducing and passing legislation recommended by Commissioner Ken Hayne, in his Final Report into his commission to investigate wrong doing in the Financial Services Industry (commonly known as the Banking Royal Commission). See below for…