Thursday, 31 May 2012

Announcing the new Chartered Tax Adviser (CTA) designation

On Tuesday 29 May 2012, we announced the introduction of a global designation for tax professionals in Australia – Chartered Tax Adviser (CTA).

We made this historic announcement, with our international colleague Anthony Thomas from the Chartered Institute of Taxation in the UK, at Opera Point Marquee at Sydney’s Opera House in the presence of members of The Tax Institute.

Watch the video from the launch.


View all the launch photos on our Facebook Page.





How does this affect our members?
All our members who are eligible for the Chartered Tax Adviser status will gain credentials recognised in a number of international jurisdictions including the UK, Europe and Ireland. The new designation allows qualifying members to join a growing international network of Chartered Tax Advisers, providing international opportunities previously unattainable for Australian tax professionals.

You can find out more on our website.

Noel Rowland
Noel
Rowland
Noel Rowland is Chief Executive Officer of The Tax Institute.

The Tax Institute is Australia’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia.

Wednesday, 30 May 2012

Media release: Global doors opened for the first time to Australian tax professionals

International tax designation exclusive to The Tax Institute

Australian tax professionals have received a major boost to recognition on the global stage thanks to a unique internationally recognised designation secured by The Tax Institute.

In an Australian-first development, members of The Tax Institute have the opportunity to apply for Chartered Tax Adviser (CTA) status, allowing their credentials to be recognised in a number of international jurisdictions including the UK, Europe and Ireland.

According to Ken Schurgott, President of The Tax Institute, the Chartered Tax Adviser designation gives the Institute’s 13,000 members the opportunity to join a growing international network of Chartered Tax Advisers, providing international opportunities previously unattainable for Australian tax professionals.

Despite boasting some of the finest professional standards for tax professionals in the world, Australian practitioners have long been held back by the lack of an international designation. "Now this hurdle has been removed and we’re thrilled to offer this unique opportunity to our members," he said.

Until this year the Chartered Tax Adviser designation was held only by members of the UK’s prestigious Chartered Institute of Taxation, but it has been extended in a bid to recognise and promote the highest standards of tax advice internationally. The Tax Institute is only the third tax body to be granted the ability to designate its members as Chartered Tax Advisers.

Mr Schurgott said this new designation illustrates the esteem in which The Tax Institute’s programs and the reputation of its members is held internationally.

"This is a crucial development for Australian tax professionals as the Chartered Tax Adviser designation is considered a trusted sign for employers and taxpayers seeking expert tax advice."

"Our members will be set apart from their contemporaries as the pre-eminent tax experts in Australia and the world," said Mr Schurgott.

The Tax Institute is Australia’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia.

Please visit our website for media enquiries.

Monday, 28 May 2012

David Bradbury announces Div 7A review

At The Tax Institute’s recent 5th Annual Tax Forum, we were very pleased to have the Assistant Treasurer, the Hon David Bradbury MP, provide a keynote address to attendees. The Minister kicked-off his speech by acknowledging “a highly regarded Institute that's been supporting the tax profession and contributing to the community since 1943”.

The Minister also announced a post-implementation review by the Board of Taxation into the impact of tax laws on deemed dividend payments by private companies: Division 7A. The Tax Institute has congratulated the Government on this announcement.

The laws in Division 7A have been a bugbear for tax professionals since their inception 14 years ago. As members are only too aware, the recent actions by the ATO on unpaid present entitlements owed by trusts to private companies has created controversy and has only exacerbated the problems faced by tax professionals in trying to navigate this complex area of law. Trusts and private company groups rely heavily on internally generated funds as a source of finance, particularly in the SME market and the ATO’s actions have markedly increased the cost.

A Board of Taxation review examining the effectiveness of Division 7A is timely as the provisions now have considerable history behind them. The experience that the tax profession has had with these provisions will form invaluable input to this review. We will ensure that the scope of the review will be appropriately wide ranging and will allow extensive, open, public consultation on all aspects of Division 7A.

In other news, last week we saw the Government introduce a significant amount of tax legislation into the House of Representatives. The legislation seeks to implement many Budget announcements, such as the changes to MIT withholding rates and ETPs, to name just two. It also seeks to enact the previously announced retrospective changes to the consolidation rights to future income rules and the transfer pricing laws. The Tax Institute continues to be a loud voice in opposing retrospective changes such as these and we will be working hard to ensure that the Parliament provides further scrutiny to the changes. I will keep members posted.

Robert Jeremenko
Robert
Jeremenko
Robert Jeremenko is Senior Tax Counsel of The Tax Institute.

The Tax Institute is Australia’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia.

Tuesday, 22 May 2012

Empty promises on tax reform

The Government has shown a willingness to engage in exploring the possibility of tax reform. It was Treasurer Swan who commissioned the once in a generation, root and branch review of our tax system in 2008: the Henry Review.

But there are big differences between exploring, promising and delivering on tax reform. The recent loss carry-back measure is an example of a positive reform that resulted from some thorough analysis. However, the scrapping of the promised company tax cut means that business is rightly sceptical at the moment about the Government's bona fides with regards to following through and actually stumping up for tax reforms.

The next stage of the Business Tax Working Group process, with proper open consultation, is a sign that the examination of potential tax reforms will continue - this is a good thing that The Tax Institute will be extensively involved in.

Robert Jeremenko
Robert
Jeremenko
Robert Jeremenko is Senior Tax Counsel of The Tax Institute.

The Tax Institute is Australia’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia.

Tuesday, 15 May 2012

Let downs in budget lock up

Another Budget week has come and gone and so have some significant tax reform commitments of the Government.

It is extremely disappointing that the Federal Government has turned its back on simplifying tax time for millions of Australians. In the pursuit of short-term revenue considerations, it has abandoned the Budget proposal of only two years ago to allow a standard tax deduction for work-related expenses. The only conclusion we can draw from this is that the Government is not concerned about making it easier for people with simple tax affairs to complete their tax returns. This important tax simplification measure was a step towards fairer and simpler tax returns, but it will be no more.

In addition, Australian companies have been abandoned by the Government's decision to scrap the proposed company tax cut. The Henry Tax Review made it clear that a company tax rate in the order of 25% should be Australia's medium term target, so it is extremely disappointing that the Government has given up on achieving a modest cut to a 29% rate.

The announcement of the tax loss carry-back measure is a welcome development that will assist small companies struggling in these uncertain times. It is pleasing to see that the Government has not rushed to adopt possible tax savings measures identified by the business tax working group. As we have said for some time, these require further detailed public consultation before any decisions can be made.

Through our technical sub-committees we are working on the details of the many other tax measures in the Budget and will keep members informed as the changes take shape.

Some recent media:


Robert Jeremenko
Robert
Jeremenko
Robert Jeremenko is Senior Tax Counsel of The Tax Institute.

The Tax Institute is Australia’s leading professional association in tax. Its 13,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia.