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Showing posts from August, 2018

Transfer Pricing Documentation and the Simplified Transfer Pricing Documentation Rules

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Transfer pricing continues to be a topical and challenging issue for taxpayers and revenue authorities in Australia and around the world.

The OECD’s base erosion and profit shifting (BEPS) project, and Australia’s implementation of many of its recommendations, highlight the importance of transfer pricing to the compliance and governance frameworks of affected taxpayers.

The Australian Taxation Office has released Practical Compliance Guideline PCG 2017/2 Simplified transfer pricing record keeping options in an attempt to help reduce the compliance burden on business.

Outlining transaction types or activities identified as ‘low risk’ for international related party dealings, this PCG specifies the criteria for taxpayers to self-assess their eligibility to use one or more of eight simplification options.

In September, The Tax Institute will stage the ‘Transfer Pricing Webinar Series’, off the back of our sold-out National Transfer Pricing Conference in Sydney earlier in the year.

Expert weighs in on what tax professionals need to thrive

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Annette Morgan reveals why thriving in tax is much more than crunching numbers and digitisation.

Annette Morgan, Tax Clinic Director and Curtin University lecturer, and CTA1 Foundations / CTA2AAdvanced lecturer at The Tax Institute, says she has loved tax from the moment she started studying as an 18-year-old.
Since then, she has worked at a few firms in Perth and engaged in professional work for Curtin University undergraduate programs, as well as lecturing face-to-face and online for The Tax Institute.
“I just really enjoy working with students and teaching tax, which I'm still very passionate about,” she explains.

Tax: not all about crunching numbers
“I think what students really need to know is that tax is about law and it’s not just all numbers,” she says.

Annette says that when professionals compile a tax return, they need to use legislation because that is the primary source document.

But there is more to what employers want.
“The way of the future is that one degree in comme…

What happened in tax in August?

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Written by TaxCounsel Pty Ltd
The following points highlight important federal tax developments that occurred during August 2018.
Each month, these developments are considered in more detail in the Taxing Issues column of Taxation in Australia, the Institute's member journal.
Residence: individuals
The initial report of a self-initiated review of the Board of Taxation on the income tax residency rules for individuals has been released.
SMSFs: red-tape reduction
A consultation paper has been released on the proposal to change the annual audit cycle for some SMSFs to a three-yearly cycle.
Draft legislation
Draft legislation has been released for the following initiatives: the extension of the definition of a “significant global entity”the removal of an exemption that allows offshore sellers not to count sales of hotel bookings in Australia towards their GST turnover thresholdtwo black economy measures; andtightening the rules on stapled structures and implementing the MIT affordable hous…

Fraud or evasion - 6th Annual Victorian Tax Forum

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The Commissioner has revised the practice statement that provides guidance to ATO staff considering fraud or evasion in the context of the unlimited time periods which allow the Commissioner to amend assessments (or to seek the payment of indirect tax which has been underpaid) due to fraud or evasion (PS LA 2008/6).

The practice statement outlines:


















what is fraud or evasion; the policy reasons for having an unlimited amendment period where there is fraud or evasion; the principles underpinning the ATO approach to fraud or evasion; and the procedures and work practices to be followed, including technical engagements and referrals, in considering fraud or evasion.  The practice statement is supplemented by the Fraud or evasion guideline (period of review). The principles and processes set out in these documents recognise that fraud and evasion are both serious matters, and never to be inferred lightly.

At October's 6th Annual Victorian Tax Forum in Melbourne, Melanie Baker, CTA, (Vic…

4 reasons why upskilling is the best thing for your tax career right now

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When a New Year begins, many of us are full of hope and aspirations. You made professional goals to set your career up for the future and lay the groundwork to become a leader or specialist in your field.

With the year almost over, you may feel that it’s too late to achieve your goals.
It’s definitely not too late. But how will you get back on track?
Here are 4 reasons why upskilling with Australia’s leading tax educator is the best thing you can do for your tax career right now:
1. Future-proofing
With the rise of digitisation, automation, as well as constant legislative and regulatory changes on the horizon for the tax profession, upskilling will set you up for the future.
More specifically, our education programs have been developed to provide you with a specific professional outcome. The Chartered Tax Adviser (CTA) designation can attract high-profile clients who want to invest in the industry’s best.
It also cultivates leadership abilities and sharp analytical skills – paving t…

Multiple Roles and Portfolio Careers - Women in Tax National Congress

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Leadership is changing and we all need to be ready.As the tax profession continues to diversify and digitise, great leadership will be key.
The ‘Women in Tax National Congress: Leadership in Modern Times’ in Sydney is a unique event for women aspiring to lead, learn and grow in our changing profession.
People focus, leader grooming, culture excellence, advocacy and portfolio careers are just some of the issues that need to be considered when we think about what great leadership looks like.
We spoke to Sue Williamson, CTA (EY) about her session ‘Multiple Roles and Portfolio Careers' and how events such as the Women in Tax National Congress can contribute to gender equality in the profession.
Sue said, “The profession will operate at its peak only when it accesses the benefit of diverse thinking in terms of diversity of gender, culture, workforce experience and general thought processes.Forums such as the Congress are an important step in moving the profession to properly embraci…

How CTA studies gave Ivonne “an edge” in her career

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Chifley Advisory’s Senior Accountant reveals how the CTA Program helped her “take the lead”.

Ivonne Muryadi graduated with a Bachelor of Commerce in Professional Accounting but worked for a law firm specialising in taxation debt during her studies.

After graduating, she joined Chifley Advisory starting from graduate position and progressing into her current role as a Senior Accountant at Chifley Advisory.

Conquering the complicated

“Tax is a complicated area and I am always intrigued by it,” says Ivonne.

“A good friend introduced me to The Tax Institute and I decided to enrol.

“The Tax Institute is known for providing up-to-date and practical tax education and training,” she explains.

She was also confident studying with The Tax Institute knowing that the module convenors are industry experts.

“In addition, our firm does not have an in-house tax advisor so undertaking this course definitely gave me an edge in my career,” she adds.

EducationGive your tax career the edge with the presti…

Corporate tax cuts and franking, start-ups and funding of growth - the 26th Noosa Tax Intensive

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Turning a client’s start-up into a success and getting it to the point where it is generating taxable income is a huge challenge, and many don’t even make it that far.

For those that do, they then need to prepare for the anomalous outcomes of the recent corporate tax cuts and the flow-on franking implications.

At the 26th Noosa Tax Intensive in November, Robyn Jacobson, CTA (TaxBanter) looks at a number of legislative amendments, some of which have just cleared Parliament, and the now far more complicated process of determining a company’s tax rate and its franking rate in the session ‘Navigating your way through the mist of the corporate tax cuts’.

Following Robyn’s session, Hannah Soh, CTA (Deloitte) expands on some of these issues in the workshop ‘Corporate tax cuts and franking, start-ups and funding of growth’.

We speak to Robyn and Hannah about what to expect in this post.

Robyn told us said “Policy changes, draft ATO rulings and unenacted measures have resulted in significa…

Resolving tax disputes through constructive engagement with the ATO

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Providing tax advice can be very rewarding but it also presents numerous challenges, particularly when dealing with new clients.

Clients come from a range of industries, have complex family circumstances and engage in various business transactions. Each new client brings with them their own unique set of challenges and tax advisers need to be ready and able to address these tax issues daily. 
As a trusted tax adviser, it is important to be on the forefront of the ever-changing landscape and be armed with the relevant and practical tools needed to help our clients.
At the upcoming ‘The Client Life Cycle: challenges and opportunities’ event in Perth, Jonathan Leek, CTA (Deloitte) and James Galati (Deloitte) present ‘Resolving tax disputes through constructive engagement with the ATO’.

We spoke to Jonathan about the importance of constructive engagement with the ATO and understanding taxpayer’s rights.


Jonathan said, “The complexity of tax law makes tax disputes inevitable, and reasona…

Dux graduate now an even “better tax practitioner”

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Find out why top performer and new dad Kong Mick Foo says “knowledge is power”.

ANZ Tax & Compliance Business Partner at Goodyear & Dunlop Tyres, Kong Mick Foo comes from a seasoned background in tax from Ernst & Young Malaysia as an external auditor, business and international tax advisor for over 8 years. After a one-and-a-half-year stint as an in-house Tax Manager at Mondelez Group, Kong migrated to Australia and joined Goodyear & Dunlop Tyres in mid-2015.

Kong is also the dux of The Tax Institute’s CommLaw2 Entities and Business Structures subject in 2018.

“In my role, I'm responsible for all indirect and direct tax matters for the ANZ business, and tax accounting ensuring proper accounting of tax expense, deferred taxes, local IFRS statutory tax reporting and US GAAP tax reporting,” he explains.

Getting the balance right

“Migrating from a different country essentially means that it is paramount that I understand the new legal environment I now work and live i…

7 must-have soft skills for tax practitioners

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As important lifelong learning or continuing professional development are for your future in tax, having the necessary soft skills too could be the difference between where you are now and flourishing in the next few stages of your career.

So what are those must-have soft skills? Find out if you tick all the boxes.

1. Written communication

Successful tax professionals communicate clearly and persuasively in writing for a variety of audiences.
The style used in writing to clients, peers, supervisors and regulators will vary, which makes understanding the ‘language’ of each audience integral. For example, a letter of advice to a client will be relatively formal, comprehensive and written in the context of the client’s specific business or financial issues. On the other hand, an email to a colleague is likely to be less formal and more succinct.
In all cases, however, a mastery of grammar, spelling and punctuation is essential. You can learn all of this quickly by astutely observing and…

5 skills top tax pros excel in

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The tax profession can be a stimulating, challenging, rewarding career choice for anyone with the right mindset and interests.

If you want to become a successful tax adviser, you’ll need to demonstrate an aptitude for study, a willingness to learn and to take initiative, and the capacity to solve technical problems.
No less important, however, are finely-tuned communication skills.
The ability to communicate involves digesting information and explaining solutions – in writing and in person. It also requires the capacity to write clearly, listen actively and speak persuasively.
Mastering communication is as important as mastering your technical education to begin and maintain a successful career in tax.
Here are five skills top tax professionals excel in:
1. Writing
Tax professionals deal with complex legislation and technical information daily. Successful ones communicate to clients and colleagues in a clear, concise manner.They write concise, yet comprehensive letters of advice and…