Showing posts from November, 2017

When is a company 'carrying on a business'?

written by Stephanie Caredes CTA *

Once upon a time, it was clear what the tax rate was that applied to a company. There was only one rate that could apply and that was it. Along came the two-tiered corporate tax rate system in the 2016 income year, the idea being that small business companies should get a lower tax rate of 28.5% instead of the usual 30%.

That was all very well until the plan changed again and it was decided that small business companies should get a rate of 27.5%, with the eligibility turnover planned to increase progressively until all companies, whatever their size, could access the lower rate.

With this change came the introduction of a new term, a ‘base rate entity’, into the Income Tax Rates Act 1986 (Cth) (Rates Act) which is used to determine which companies can access the lower company tax rate of 27.5%. At the time of writing, the term ‘base rate entity’ is defined in the law as:

Section 23AA Meaning of base rate entity

An entity is a base rate entity for a ye…

The Hon. Anna Bligh AC & Karen Payne to review changes in financial services – 2018 Financial Services Taxation Conference

For the past 15 years, leaders from across the financial services sector have kicked off each new year at The Tax Institute’s Financial Services Taxation Conference. The 2018 event in February will prove to be no different, with prominent figures setting the agenda and grappling with the big issues.

The program will feature a keynote address from The Hon. Anna Bligh AC, Chief Executive Officer of the Australian Bankers’ Association and former Premier of Queensland.
Anna will review the legislative and administrative changes proposed or enacted in 2017. From the diverted profits tax to hybrid mismatch rules, she will assess the impact these measures have had on the sector and more broadly. She will also look at the Turnbull government’s bank levy and proposals such as the Corporate Collective Investment Vehicle regime, the introduction of a mandatory disclosure regime, and issues related to transparency.
In addition, Anna will present her view on the effective taxation reforms that co…

Latest free technical paper - 'Transfer balance cap and CGT relief'

Each month, members of The Tax Institute can access a complimentary, recently-published technical paper that provides up-to-date information on a relevant issue for tax professionals.

The most recent paper is Practical solutions to the new super regime – transfer balance cap and CGT relief by Jemma Sanderson CTA.

Jemma is a Director at Cooper Partners Financial Services, heading up their SMSF specialist services. She provides strategic advice on SMSFs, estate planning and wealth management to clients, as well as technical support to accounting, legal and financial planning groups.

Jemma has over 17 years’ experience in developing complex strategies for high net worth clients. She is a regular presenter on superannuation and SMSFs for The Tax Institute and other professional bodies across Australia. She is also the author of the popular SMSF Guide published by The Tax Institute, currently in its 8th edition, and is the author and convenor of The Tax Institute’s Graduate Diploma of App…

Trusts: ATO Tax Avoidance Taskforce perspective – 2017 SA Trusts Day

Despite relative legislative stability in recent times, trusts practitioners are still often challenged by the complexities inherent in the application of rigid taxation laws against trusts.

The continued focus of the ATO and its Tax Avoidance Taskforce means advisers must be diligent, vigilant and aware of potentially risky areas that the ATO is looking at.

We spoke with Simon Haines FTI, a Senior Tax Counsel (Assistant Commissioner) in the ATO’s Tax Counsel Network, about the ATO’s approach and his upcoming session at the SA Trusts Day on 1 December 2017.

Simon told us that “the Taskforce continues to investigate risky arrangements involving the use of trusts for tax avoidance and evasion. This work started after the 2013–14 Budget with the Trusts Taskforce, and is now continuing under the operational umbrella of the Tax Avoidance Taskforce – Trusts.

"To support this work, we’re looking to provide the tax profession (and wider community) with up-to-date information about some …

GST coming for your online cart – Australia’s proposed tax changes to low-value imports

Written by Geoff Mann, Partner & Elke Bremner, Senior Associate – Ashurst*

Stock up on your Nike running shoes, your Kate Spade handbags and your Stephen King novels now as, come 1 July 2018, you may be paying an additional 10%.

As part of the 2016/17 Federal Budget the Treasurer, The Hon Scott Morrison, announced that the Goods and Services Tax (GST) will be extended to low-value goods imported by consumers. The announcement followed the Government's 2015/16 Federal Budget measure of broadening the GST base to impose GST on acquisitions of intangible supplies and digital products where the recipient of the supply is an Australian-based consumer.  
Under the current law, no GST is payable on the purchase of goods from a non-resident online retailer unless the value of those goods exceeds A$1,000. Where the value exceeds A$1,000, the customer will be required to pay the GST on the purchase to the Australian Border Force before the package will be released for delivery. Under th…

Member profile – Rosemary Campbell

Rosemary Campbell CTA is Director of Taxation and Business Services with Merit Partners, Chartered Accountants, in Darwin. She has over 29 years’ experience providing advice on federal and state taxation, as well as financial and business matters.

We spoke with Rosemary about her career and her life.

Member’s name Rosemary Campbell CTA

Company Merit Partners Pty Ltd

State Northern Territory

Member since 1992

Areas of specialty Income tax advice to SMEs, CGT concessions and succession planning.

How did you end up in tax? My career started in Townsville with my first job as a graduate accountant.

A subsequent move to Darwin and employment with a 'Big 4' firm saw the need to specialise for career advancement.

I’ve never regretted the move to specialise in tax, as it is constantly changing and continues to provide challenges. It's satisfying to know that you have helped a client navigate the complexities of tax advice so they are able to make an informed decision as to the be…