What were they thinking

Submitted by (@michael.flynn)

Absolute entitlement

If a beneficiary is absolutely entitled to a trust asset, they, rather than the trustee, are required to return any capital gain, or claim any capital loss from a CGT event that happens to the asset. A common example that illustrates the significance of this concept is that of a nominee who holds shares on behalf of a principal. If the principal directs the nominee to sell the shares, the principal returns the capital ...more »

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2 votes
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Can government fix it

Submitted by (@gtho351)

Superannuation Guarantee Ruling SGR 2009/2 - Update to OTE

There seems to be some outdated exclusions as to what is included as OTE 1. Make-up payments for Jury Service are not included in OTE for SG purposes, disadvantaging employees when they are compulsorily attending Jury service (Para 37. An employee may receive 'top-up payments', such as those made while serving on jury duty or with defence reserve forces, that make up some or all of the difference between any amount ...more »

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1 vote
1 up votes
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Can government fix it

Submitted by (@moderatorboardoftaxationsecretariat)

Excess Superannuation Tax

The Board has received the following suggestion during the course of its consultations. The current provisions around excess superannuation tax are bureaucratic and cumbersome especially for non-executive directors with the decision to include death and disability insurance in the superannuation contributions cap. Many persons will inevitably be in breach of the cap, especially those receiving multiple group certificates. ...more »

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Sweating the small stuff

Submitted by (@dsmerchanskyi)

SAPTO transfer to spouse: formula update

A formula in regulation 12(3)(b)(ii) in INCOME TAX ASSESSMENT (1936 ACT) REGULATION 2015 still contains figures $6,000 and 15% which appear to be references to old income tax rates and tax-free threshold. Subregulation 12(4)(a) contains a reference to $6,000. Based on this regulation, presently taxpayers with taxable incomes falling within the $18,200 tax-free threshold may not be able to transfer unused SAPTO to their ...more »

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4 votes
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Can government fix it

Submitted by (@thetaxinstitute)

Changes to the Non-concessional Contribution Caps

As a result of the May 2016 Budget announcement changing the non-concessional contributions (NCC) cap, some taxpayers did not put the previously allowed $540k into their SMSFs as a NCC by 30 June 2016. However, under the revised Government announcement in September 2016, some taxpayers would have been permitted to do so. If a taxpayer turned 65 between the two announcements, the taxpayer could no longer contribute the ...more »

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Submitted by (@fjohnmorgan)

Phoenix Labour Companies and Employee Benefits lost or defrauded

I submit my email chain with a potential client (whose identity I've anonymised until she's ready to be disclosed). I will suggest she send my email suggestions on how to tackle this perennial and cancerous practice to the Inspector General of Taxation as a means of setting action in train in the various quarters that might be productive. I suggest that the ATO, the IGoT, ASIC and the Federal Police and the Board of Taxation ...more »

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1 vote
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Tell it to the Tax Office

Submitted by (@corporate.tax.association)

FBT, GST and Uber travel.

The recent Federal Court case on the GST treatment of Ubers decided to adopt a common sense definition of taxi and thus have the same GST rules apply to taxi and Uber travel. However the FBT law defines a taxi as a "motor vehicle that is licensed to operate as a taxi". It would seem therefore on a literal reading of the FBT law, that the exemption given to certain taxi related travel given to employees does not apply ...more »

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5 votes
5 up votes
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Can government fix it

Submitted by (@nambiarp)

New Project Contribution/ levy

Would the board consider making recommendations to the government to introduce a voluntary tax levy (administered through the tax system) whereby the average Australian is offered an option to contribute towards a project ( could be a long term infrastructure project like high speed rail) and get a tax deduction for it. The revenue generated will go into a fund specific for that project. The average Australian will feel ...more »

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1 vote
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Submitted by (@robbie)

Main residence CGT special market value rule should be a choice

Section 118-192 of ITAA97 provides a special rule under which a main residence (if acquired after 20/8/96) is deemed to have been acquired at market value when it is first used to produce assessable income. Too many taxpayers don't get the valuation at the time (eg. because they thought they were going overseas for max 6 years so could use the absence choice, but ended up staying for 10 years) and there is no guidance ...more »

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2 votes
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Submitted by (@corporate.tax.association)

Review FBT compliance costs - please!

According to a Corporate Tax Association survey of its members, Fringe Benefits Tax (FBT) is a significant compliance burden on taxpayers and is in need of reform. Whilst there have been some compliance safe harbours developed for FBT log books, other areas need legislative reform to reduce the cost of compliance with little cost to the revenue. Some simple fixes would include: > Allowing for consolidation or grouping ...more »

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6 votes
6 up votes
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Too taxing: reducing red tape

Submitted by (@robbie)

Super contribution info availability for tax agents

Currently there seems to be no way for tax agents to access taxpayer superannuation contribution details that the ATO holds. The ATO applies this info in assessing Div293 tax but the tax agent cannot accurately estimate for a client what the Div293 liability will be because tax agents cannot access the info that the ATO holds about contributions made on behalf of a taxpayer for a financial year. The tax agent can guess ...more »

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4 votes
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Can government fix it

Submitted by (@agblack)

Reinstate an STS Cash Accounting Method

Small Business Entities should be allowed to account for income on a cash basis once again. Prior to the 30 June 2005 financial year, the STS Cash accounting requirement was a feature of the Simplified Tax System that allowed Small Business Entities to account for income and expenses on a cash basis. However prior to the 30 June 2007 financial year, entities that elected to utilise the STS were required to use ALL ...more »

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2 votes
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