News
The ATO has warned taxpayers that it holds data on more than $100 billion held in offshore accounts and uses sophisticated analyses to identify the taxpayers with unreported foreign income. It is urging taxpayers to report any foreign income whether from investments, family members or overseas employment, no matter how small, and even if tax has been…
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The ATO has updated its list of what attracts its attention to include six items specifically related to FBT. These include: failing to report car fringe benefits, incorrectly applying exemptions for vehicles or incorrectly claiming reductions for these benefits mismatches between the amount reported as an employee contribution on an FBT return compared to the…
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The ATO will acquire information for the 2016-17, 2017-18 and 2018-19 financial years on vehicles that have been transferred or newly registered where the purchase price or market value is equal to or greater than $10,000. Data will be acquired from the eight state and territory motor vehicle registry authorities. It is estimated that records…
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The ATO has updated its guidance on depreciating assets for investment properties. If an individual purchased their rental property at or after 7.30pm on 9 May 2017, they may be impacted by the changes to legislation for depreciating assets. These changes apply from 1 July 2017. Individuals can no longer claim deductions for second-hand or…
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The ATO has recently expressed concerns about the increase in claims by taxpayers for certain work related expenses, including clothing and laundry expenses, and has advised that it is an area where it will be “increasing attention, scrutiny and education”. It has also reminded taxpayers that to be eligible for a deduction, clothing needs to…
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The ATO has released a list of behaviours and characteristics that may attract its attention in relation to privately owned and wealthy groups. It says the information has been provided as part of its commitment to transparency in working with privately owned and wealthy groups. Broadly, the following behaviours and characteristics may attract its attention:…
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There are a variety of tax concessions available to a taxpayer that is carrying on a business which satisfies the eligibility criteria to be a ‘Small Business Entity’ (‘SBE’) Broadly speaking, for the year ending 30 June 2017 a business taxpayer will be an SBE if its ‘aggregated turnover’ is less than $10,000,000. ‘Aggregated turnover’…
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The ATO will focus on deductions claimed for rental properties in popular Australian holiday destinations this tax time, having identified many incorrect claims for holiday homes by investors last year. Assistant Commissioner Kath Anderson has reminded holiday home owners that they can only claim tax deductions for expenses made during a period when the home…
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The ATO has reminded taxpayers that, from 1 July 2017, the current 18 per cent tax offset of up to $540 will be available for any individual, whether married or de facto, contributing to a recipient spouse whose income is up to $40,000. Currently, an individual can claim a tax offset up to a maximum…
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The ATO has alerted taxpayers against claiming the R&D tax incentive for ineligible software development activities. According to Taxpayer Alert TA 2017/5, the ATO and AusIndustry are reviewing arrangements of companies that are claiming the R&D tax incentive on software development projects where some or all of the expenditure incurred is on activities which are…
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