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Showing posts from 2018

What’s happening in M&A?

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M&A transactions force tax advisers to consider a variety of issues, many of which are frequently evolving.

The last year or so has exemplified the volume and fluidity of M&A tax issues to be considered, from the ATO’s ‘Justified Trust’ concept, the changes to central management and control (CMAC) following Bywater, the MAAL, the DPT, changes to the transfer pricing provisions, the Gordian Knot that is RCF IV, and the torrent of ATO guidance released recently.

At the 2018 Victorian Annual Tax Forum in October Enzo Coia, CTA, (Deloitte) presented the session ‘What’s Happening in M&A?’ where he discussed recent transactions and the themes associated with structuring, funding and financing acquisitions, dealing with sale proceeds, closing mechanisms, and ATO activity.

The paper he presented, co-written with James Gould (also of Deloitte), is excerpted in this post.

In order to provide a true ‘update’ of what is happening in M&A, Enzo and James considered recent tax de…

Powers of Attorney and SMSFs

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The use of a self-managed superannuation fund (SMSF) as a wealth retention and investment vehicle in Australia continues to grow. This is despite the increased complexity of the rules and legislation governing SMSFs.

The ageing of SMSF members (and thus trustees/directors of corporate trustees) gives rise to the need for consideration of the continuity of appropriate management of those SMSFs in the near future. This is particularly the case in the event that SMSF members suffer from legal incapacity.

At the 2018 Super Day in Adelaide, Nicole Santinon (Cowell Clarke), co-author of The Tax Institute’s SMSF Income Stream Guide, presented the session ‘Powers of attorney and SMSFs’.

Nicole’s session considered the use of Powers of Attorney (POA) in the context of the management of SMSFs, and covered issues including:
The ability for a member to grant a Power of Attorney and the role of an attorney as an SMSF trustee/director of SMSF trustee The ability of an attorney to deal with member/tr…

MD tackles the “too hard basket” in upcoming SA event

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Tax leader Andrea Michaels, CTA, talks incapacity issues, powers of attorney and growing problems in society.

Andrea is the Managing Director of NDA Law which she founded 4 years ago. On The Tax Institute’s Professional Development Committee, she is the chair of the Family Business Australia Adviser Subcommittee (SA), and sits on a number of boards across government, corporate and NFP.

She’s very passionate about inclusion and diversity in professional services.

And what’s more, she is also one of the speakers at this year’s SA Succession Planning Day.

“I work in tax and superannuation law, commercial law and estate planning,” she says.

“I first joined The Tax Institute in 1999, so next year will be my 20-year anniversary! I still have my first membership card,” she laughs.

But she’s seen the tax world change quite a bit throughout the years, and is looking forward to speaking at the Succession Planning Day.

Incapacity and the Powers of Attorney

“I’m speaking about incapacity issues …

Pintarich – a case that should never have been run!

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Written by Bob Deutsch, CTA
If ever there was a case that should not have been pursued, this was probably it.

To cut a very long story short, Mr Pintarich was in active discussions through his accountants with the ATO seeking to settle a long running dispute. The dispute involved the payment of income tax together with a significant amount of General Interest charge (GIC).

On Monday 8 December 2014, the ATO sent a letter to the taxpayer bearing the signature block of the first Deputy Commissioner. The letter was headed “Payment Arrangement for your Income Tax Account Debt”. The relevant part of the letter stated as follows:

“Thank you for your promise to pay your outstanding account. We agree to accept a lump sum payment of $839,115.43 on or by 30 January 2015.
This payout figure is inclusive of an estimated GIC amount calculated to 30 January 2015. Amounts of GIC are tax deductible in the year in which they are incurred. If you have any difficulties in making this payment by the a…

Top 5 personality traits employers look for (and how to make sure you have them.)

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You may be wondering how to secure your next promotion or get the advantage over the competition on your interview. Research by employer branding firm, Universum, who annually surveys over 400,000 students and professionals worldwide on jobs-related issues, provides a clue by sharing the top five personality traits employers are looking for in job candidates.

Not surprisingly, professionalism (86%), high-energy (78%), and confidence (61%) make the top three. When it comes to these traits, first impressions count. You can tell from the first 30 seconds of meeting someone if they are a confident, energetic professional.

As important as first impressions are, employers like to see proof that your awesome traits will come to life on the job or under pressure. Confidence is a key part of this, but the question is how can we gain and keep it?

Luckily, confidence can be learned, practiced and mastered, just like any other skill. And having it will positively impact your professionalism an…

Dux graduate on how transitioning careers helped her climb the ranks

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Hannah Edwards reveals how study helped her change careers and progress quickly in her firm.

There is a myriad of reasons why people change careers. Companies downsize. Career development prospects peter out. Managers change. But for many, it is simply the decision to find a career that they are truly passionate about.
In an article by Forbes, it states by age 35, about 25% of employees would have worked in five jobs. Most employees choose new companies with the view to find a better fit for their career development. Professional services, government, non-profit, education, media and entertainment industries had the most job hoppers within five years of university graduation.
Originally from the UK, Hannah had nine years' predominantly audit experience before she felt it was time for a change.She gained her Chartered Accountant qualification whilst working at a small accounting practice in Manchester before moving to Australia.

“I worked as an auditor in Darwin for a year, then in Br…

The hybrid mismatch rules: impact on foreign investors

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The hybrid mismatch legislation contained in Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Bill 2018 received royal assent on 24 August 2018.

In this article, taken from the upcoming November issue of Taxation in Australia, Wendy Hartanti, Hendrik Hilgenfeld, and Victor Pak (all PricewaterhouseCoopers), look at some of the key issues.
These new rules will apply to income years starting on or after 1 January 2019. However, other than where an importing payment is made under a structured arrangement, the imported mismatch rule will only apply to income years starting on or after 1 January 2020.

This article focuses on certain aspects of the application of the hybrid mismatch rules on inbound investments. The hybrid mismatch rules intend to eliminate hybrid mismatches that arise from the differences in the tax treatment of an entity or financial instrument in two or more jurisdictions by disallowing a deduction or including an amount in assessable income. The rules al…

Goodwill and business assets

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Goodwill is an accounting, business, and legal term, and the meaning for each can differ.

It is intangible, and difficult to define.

In Bender’s Australian Stamp Duties, author Dr Philip Bender attempts to do just that, looking at the definition of goodwill, how it is valued, and setting out some case law examples relating to goodwill, providing a summary of the facts in each, and the finding.

The following excerpt is taken from the section ‘Business assets’ of Chapter 2 ‘Liability for duty’, ofBender’s Australian Stamp Duties.

Goodwill and business assets

Historically, “goodwill” was regarded as property for stamp duty purposes. Even for those jurisdictions where duty is not imposed on business assets (or only on a limited category of business assets), it is still important to determine what constitutes goodwill and what is the value of that goodwill. This is because, in the sale of a business, there may be other dutiable property.

Accordingly, determining the existence and value …