Showing posts from September, 2018

Develop the skills specifically sought by employers in the tax profession

Gain access to practical tax education.

The Tax Institute’s preferred method of developing curriculum is to consult with employers on the skills they need in their firms.

By having a detailed understanding of what the end point (that is, the desired skill set) is, the course development can then “backfill” to ensure that graduates exit the course with those skills.

This method of curriculum development is known as “DACUM”.

DACUM is an acronym that stands for Developing a Curriculum. DACUM is a process that has been used for over 40 years to conduct job analysis in every field imaginable all over the world. It is primarily used to create and update training and education programs. 
It is unique in the sense that expert workers are used to determine curriculum, rather than having curriculum selected by instructors, college professors, or training managers. By making the workers the experts, DACUM narrows the gap between what is typically taught in classes and what workers actually n…

What happened in tax in September?

Written by TaxCounsel Pty Ltd
The following points highlight important federal tax developments that occurred during September 2018.
Each month, these developments are considered in more detail in the Taxing Issues column of Taxation in Australia, the Institute's member journal.
Base rate entity legislation

The amending Bill that redefines the base rate entity concept that applies for the purpose of determining a company’s entitlement to the lower (27.5%) company tax rate was passed by parliament on 23 August 2018.
DGR reform

On 22 August 2018, the then Minister for Revenue and Financial Services released a consultation paper on the proposed design for key components of the government’s package of deductible gift recipient reforms.
Vesting of a trust

The Commissioner has issued a final ruling which explains his views about the immediate income tax consequences of a trust vesting.

Professional Development:Women in Tax National Congress: Leadership in Modern Times. Join us in Sydney, 21…

Preparation, scoping and agility are essential - The ATO’s in-house facilitation

The ATO’s in-house facilitation aims to provide rapid resolution of disputes with the assistance of experienced ATO personnel working as independent facilitators.

The ATO’s independent facilitators are neither judge nor arbitrator and cannot decide a matter. Their role is limited to helping the parties find a pathway to an outcome.
In this article, originally featured in Taxation in Australia, the Institute's member journal, Chris Wallis, CTA, (Victorian Bar) notes that as the ATO’s in-house facilitation model matures, and awareness of its accessibility increases, practitioners need to be aware of: the duty to make clients aware that facilitation is a valid option;the opportunities that facilitationpresents; andthe traps for the unwary. Chris also takes part in the panel session 'ATO’s In-House Facilitation', alongside Lillian Howes, at October's Tasmanian State Convention, facilitated by Paul Conde, CTA.
In his article, Chris examines the ATO’s in-house facilitation p…

How to keep your top tax talent

Tax leaders - don’t lose your stars. Here’s how to keep them.
All leaders know that a great team with a diverse range of talents is a solid blueprint to hit business objectives. But having highly talented people isn’t enough to keep hitting those objectives. The days of training staff once-a-year is over. With the current pace of change, employers need to develop staff in critical roles on a real-time basis and ensure that a sustainable pipeline of talent is available to fill key roles over time.
According to LinkedIn’s 2018 Workplace Learning Report, which surveyed approximately 4,000 professionals around the world, 90% of executives agree that learning and development (L&D) is a necessary benefit to a company.
But filling a talent pipeline isn’t the only benefit of training. 94% of employees say that they would stay at a company longer if it invested in their career development.
The report found that softening the impact of automation through training for soft skills, getting …

Life cycle of a renewables energy project

Australia is increasingly seeing a move from traditional energy sources such as coal and gas fired power stations to renewable energy like solar and wind farms.

Renewable energy projects are proving to be quite unique from a stamp duty perspective and can produce unintended outcomes if not managed carefully. As he notes “What seems to be apparent from renewable developments is that each has their own unique commercial, legal and land tenure characteristics.”
At the 18th Annual States’ Taxation Conference in July, EY’s Steven Paterson presented the session ‘Life cycle of a renewables energy project’. His accompanying paper is excerpted in this post.

Steven notes in the paper that renewables energy projects are “a good example of the lack of harmony between the stamp duty legislation of the different jurisdictions in the modern world, which is something that stamp duty practitioners have had to manage for decades”.

He sees this uniqueness stemming from a number of factors, including:

Practical Issues with Division 7A

Division 7A is a risky and complex tax issue for private companies to navigate.
At the NSW 11th Annual Tax Forum in May, Greg Travers, CTA, presented the session 'Practical Issues with Division 7A', where he provided an update on important Division 7A issues.

Greg looked at the ongoing use of corporate beneficiaries, managing the conclusion of sub-trust arrangements, how to approach resolving historical Division 7A issues, and the announced rewrite of key elements of Division 7A.

He also covered areas of focus for ATO audit activity, including interposed entity rules and the interaction with FBT, as well as recent cases, ATO rulings and guidance.

The paper he presented at the Forum is excerpted in this post.

Practical Issues with Division 7A: Introduction

Division 7A was introduced with effect from 4 December 1997 to replace s. 108. Division 7A was self-executing, overcoming one of the major deficiencies of s. 108.

In its original incarnation, Division 7A applied to payments, …

From battlefield to boardroom – lessons for emerging and current leaders

William Gooderson retired from the Royal Engineers aged 31 at the rank of Major after a career including active deployment in Afghanistan. 
Now at PwC, he is a regular presenter and coach on leadership skills.

At the upcoming 2018 Emerging Leaders Seminar in Brisbane, he will share his tips and insights into the leadership skills he developed through the course of his military service and explain how he has transitioned these same skills into his current role.

We speak to him about what to expect in this post.

William said “It may not seem obvious beyond the clichés, but there are a number of lessons that you can take from the frontline around leadership and relate them to the corporate environment. I’ll be explaining some of them in my keynote address.”

“There are traits of leadership that are applicable to everyday life. I’ll be covering some of them, as well as how to use personal experience to learn and develop in the art of leadership.”

Covering the Seven Traits of Leadership, William…

4 secrets to sailing through disruption in tax

Tax expert reveals his secrets to managing change and disruption.

Andy Milidoni, Partner at Johnson Winter & Slattery and CTA3 Advisory lecturer at The Tax Institute, has been practicing tax for almost 20 years across all aspects of revenue, law and trusts; including indirect and direct taxes, GST, stamp duty, land taxes, as well as income tax and international tax.

Legislation. Regulatory changes. Digital transformation. Globalisation.

It’s clear that tax is an evolving profession.

Andy reveals four secrets to managing that change and disruption.

1. Be on top of legislation
Let’s face it – the law is never static; it is always changing, being interpreted or redefined, as regulators strive, with varying degrees of success, to ensure that the law constantly reflects changes in society itself.

“First of all, you do need to be on top of recent developments; not only the legislative requirements, but also case law,” says Andy.

But having said that, he says that if you commit to a pro…

Women in Tax National Congress sneak peek: is great leadership a balancing act?

A preview of this year’s Women in Tax Congress National Congress.
One of the greatest challenges for both emerging and established leaders is juggling the stress and health issues that can arise during their leadership journey.
In an article by Business Insider, Australia’s Biggest Mental Health Check-In study used data from 3,500 employees across 41 organisations from a range of industries, and was conducted by mental health technology group Medibio.
Results show that one third of program participants were suffering from some form of mental illness, with 36% suffering from depression, 33% from anxiety, and 31% from stress.
“The manner in which we all live, work and interact has changed radically … to the detriment of our mental health,” says psychologist Peta Slocombe, the Check-in program Creator and Medibio senior vice president of Corporate Health.
“And yet organisational approaches to mental health have not kept pace.”
Slocombe adds that depression is estimated to cost Australia $12.6…

What tax leaders need to be serious about

Sarah Dewar, Associate at Cooper Grace Ward Lawyers, says she chose tax as a career, on a full-time basis, about three or four years ago.

“Prior to that, I'd been in commercial litigation, so I had a broad range of disputes that I worked with, and tax disputes were one of them,” she explains.

“As it just naturally happened, I really enjoyed the work that I was doing with tax disputes, and made it a full-time career choice.”

Sarah says that when she’s dealing with clients that have tax problems, she really enjoys getting involved in their businesses, learning about “what makes them tick, and what doesn't,” and “the changes that the tax laws have on people's businesses,” to provide the best advice.
Great leadership – in a nutshell
“I think there are a few things that a key leader in the tax profession needs to implement, and the first one, I think, is consistency,” says Sarah.

She says that tax leaders need to be consistently excelling at their specialty that they've ch…

Part IVA and Restructures

A number of tax measures have recently been introduced, or are in development, with the aim of removing the attractiveness of particular structures from a tax perspective, for example, the hybrid mismatch rules.

With the potential for harsh consequences, many taxpayers are now looking at altering their existing arrangements to limit their exposure.

At 2018’s National Resources Tax Conference, Andrew Broadfoot, QC (Victorian Bar) presents the session ‘Part IVA and Restructures’, looking at the impact of these measures, and how to assess and address the risks arising under Part IVA.

We spoke to him about some of the issues facing advisers in this post.

“There is very considerable uncertainty about how Part IVA may apply, or be sought to apply, in any given set of facts. This is particularly tricky where Part IVA potentially interacts with other anti-avoidance or integrity provisions.” he said.

“The interaction between Part IVA and restructures, where restructures are done to avoid adve…

Making sense of the menu of small business CGT concessions

The Federal Government announced proposed amendments limiting the application of the small business CGT concessions in the 2017-18 Budget.

Earlier this year, Exposure Draft legislation and explanatory material was released by the Government, with the Bill passed by the House and currently before the Senate.

These proposed measures would reduce access to the small business CGT concessions for taxpayers disposing of ownership interests in companies and trusts significantly.

For a client looking to restructure or considering an exit through a business or share sale, the compliance costs and complexities associated with determining eligibility for those concessions are already high and, if passed, the proposed amendments to Div 152 will undoubtedly add to the existing complexity – and with retrospective effect.

At the 26th Noosa Tax Intensive in November, Leanne Connor, CTA, (WGC Business Advisors) presents the session ‘Making sense of the menu of small business CGT concessions’, whe…