Showing posts from January, 2019

Stapled structures and foreign investor measures

On 20 September 2018, the Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018 was introduced into parliament to give effect to the government’s proposal to reform the tax treatment applicable to stapled structures and certain foreign investors.

This Bill reflects the culmination of a long process which began with the Australian Taxation Office seeking to address the use of staple structures with TA 2017/1 released in January 2017, and which may almost be resolved with legislative change.

This post excerpts the article 'Stapled structures and foreign investor measures', written by Stuart Landsberg, FTI, Christina Sahyoun and Angeline Young, (all PwC), which originally appeared in the December / January issue of Taxation in Australia, The Tax Institute's member journal.

The Treasurer announced that the Bill will assist the government to “better guarantee the essential services and vital infrastructure th…

Achieving harmony within estates – 2019 WA Estate & Succession Planning Intensive

With 2018 bringing about more legislative changes in key estate planning areas, than the past 30 years combined, estate and succession planning is high on practitioner’s radars.

This year’s WA Estate & Succession Planning Intensive touches on a number of hot topics. Here we will look at two of the ten sessions and speak with the presenters.

Opening the Intensive, Sally Bruce (Jackson McDonald) presents ‘Succession planning, how to achieve harmony between estate and non-estate assets’. A crucial factor when advising on an overall succession plan, Sally explains ‘my session will identify strategies for both estate and non-estate assets and how to achieve harmony between them. Trust succession will be covered in some detail and include a look at controlling positions, shareholder agreements, trust amendments, resettlement issues and associated tax and duty implications. My session will inform delegates about the myriad of issues which their clients need to consider when putting to…

Tax and Technology: Automation, the Digital Economy and Single Touch Payroll

In the ever-changing world of tax and technology, we are constantly facing pressures to increase efficiencies and do things smarter. But what does this mean in a practical sense for our firms.
What are some of the current practical issues that technology is solving, and what new ones is it creating? What demands and challenges does this pose and what is the impact on our clients… now and in the future?
At the 34th National Convention in March, Robyn Jacobson, CTA, (TaxBanter) and Colin Walker, (Australian Taxation Office) look at the issues facing advisers in their session ‘Tax and Technology: Automation, the Digital Economy and Single Touch Payroll’.
We spoke to Robyn about what to expect on the day.
“The ATO is currently focussed on how technology can improve their processes, as well as the experience that tax agents have when engaging with those processes. Colin and I will aim to give delegates an understanding of how the ATO is going about this, as well as what tax practitioner…

Restructuring and Division 7A

Division 7A has caused its own peculiar problems for existing clients or inherited clients. What is clearly and self-evidently an existing problem, such as, for example, an extant loan which has yet to be repaid in accordance with the terms as set out in section 109N so as to avoid the operation of Division 7A, is an issue that needs to be dealt with.
The usual approach in addressing such issues is to take a proactive approach by effecting corrective action, in the form of making catch-up payments and making application to the Commissioner under section 109RB as it presently stands. However, there can be circumstances where prospective transactions that are, in substance, of a restructuring nature and could have a beneficial outcome.

In his paper, presented in Perth at the 'Division 7A Day' and excerpted here, Arthur Athanasiou CTA (Life), explores some of those circumstances, but at this point emphasises that any form of restructuring could give rise to an identifiable tax b…

Stocktake on recent superannuation changes

In this article from the August issue of Taxation in Australia, excerpted here, Daniel Butler, CTA, argues that the rules related to superannuation should encourage long-term savings rather than being a mechanism for governments to extract further tax revenue to balance their annual expenditure needs.

Daniel is one of Australia’s leading SMSF lawyers, and one of the presenters at the upcoming Super Day in Melbourne, part of the 2019 National Superannuation Series, taking place around the country in March.

In the article, Daniel points out that we have recently experienced substantial superannuation changes during the period of 1 July 2017 to 30 June 2018, and as such, a brief “stocktake” of the changes introduced by the current Coalition Government is provided.

He points out that a number of these policies were adverse to many members of the Institute.

Former Prime Minister Malcolm Turnbull has said that the next federal election is to be held in 2019. As Labor may be elected, a brie…

Rae Ni Corraidh: teaching the practical application of taxation law

The tax expert on keeping abreast of the changing tax landscape, being approachable and lessons from outlandish case studies that are more common than you think.
With 25 years’ experience in tax and a lecturer of all core subjects over the last decadefor The Tax Institute’s structured education program, Rae Ni Corraidh got into tax by accident. She then realised she liked it and, in fact, was quite good at it.
Q. Tell us a bit about your career background.
After working at big four companies for ten years in a specialist role, I moved to mid-tier firms to develop a broader range of tax skills, where I worked for another ten years. I have been involved in teaching all the core structured education programs at The Tax Institute over the last decade. I’m now a tax adviser at the Knowledge Shop; an external advisory resource for firms that may not have their own tax expertise.
Q. Why did you choose a career in tax?
A. Tax is like a jigsaw puzzle where you don't have the picture – e…

Executive Director of tax on how to juggle work, life and study

Ilana Kramarov, Executive Director – Tax Consulting at Bell Partners, shares her approaches to work life balance and why she thinks “education is essential” in one’s career.
Ilana says gone are the days where work involves the standard of sitting in an office from 8.30am to 5pm.
“Flexibility needs to not only be the ability to work from home but the ability to work non-standard hours.  Provided one still accomplishes their role as required by the firm, having set hours should not be required,” she adds.
“In my experience as a working mother with a young child, flexibility in what hours are dedicated to work has been the key for how I juggle work and life balance,” she explains.
“Starting my work day slightly later works for me as I get to spend time with my son in the morning, then in the evenings after he has gone to bed I can do further work. 
One thing that’s certain in tax is change.Not only in the form of changes to legislation but also to the environment in which we operate and in…

In the face of constant change in the profession, education is a way to tackle challenges head-on

Julia Abdalla on why tax education is so important, thoughts on leadership and what she loves about being a member of The Tax Institute.
Julie Abdalla, Associate at Freshfields Bruckhaus Deringer, now on her way to a new adventure in the UK, says that in the face of constant change in the profession, education is a way to tackle challenges head-on.
“Tax is constantly changing, and it's very high on the agenda for politicians, for business, for individuals, for charities,” she says.
“Tax advisors still have a very important role to play, even with advances in technology,” she adds.

Julie says think we need to see the challenges as an opportunity for what can be done differently; it's about challenging the status quo. It's about adapting processes to take into account these new tools that are available.
Education is one way to get ahead of the game, so to speak.
“I personally think it's so important,” she says.
“I think there are many elements to the way you learn and to the…

Investing in the future

written by Matthew Pawson CTA (Life) *

I believe it is incumbent on those of us who are able, to provide opportunities for employment, training and mentoring for the next generation of practitioners, particularly in the complex world of tax.

In my own work as a lawyer, I am responsible for training and mentoring the graduate lawyers in our firm who are commencing their careers in the law.
Invest in training It is important to invest in the future of the profession by providing quality training opportunities. While university learning is important, there is no substitute for the valuable education, experience and skill that come from hands-on training in the workplace. The development of the essential technical and soft skills required to become an effective practitioner is facilitated best when coupled with the complimentary experience of making it count for a real client. Education:Success is not an accident. It's a choice. Choose tax education that gives you the answers to real life …