ATO uses Data Matching to crack down on share income, capital gains

The ATO is once again extending its data matching program, this time focusing on share data. In a recent media release the ATO announced that it would start the task of checking if taxpayers were properly disclosing income and capital gains on sale of shares. This means data matching over 500 million records, dating back to 2014. Data is obtained … Read More

Directors now protected from insolvent trading

Is your company unable to pay its debts? Section 588G of the Corporations Act 2001 imposed a duty on a director to prevent a company from engaging in insolvent trading. If a director allowed their company to continue trading after it became insolvent and allowed their company to incur debts, then they became personally liable for those debts. A consequence … Read More

Another ATO crackdown

It seems the Australian Tax Office (ATO) are never happy with the amount of tax we pay. A recent ATO announcement may actually support this theory and is probably sufficient evidence to support their latest crackdown, where there will be an increased scrutiny of expenses claimed in individual income tax returns for the 2018 tax year. The ATO has just … Read More

More tax savings for small business

From 1 January, 2018 certain types of insurance for small business are no longer liable to stamp duty. To qualify as a small business, the entity must: Be carrying on a business, and Have aggregated turnover of less than $2 million The exception will apply to: Commercial vehicle insurance (being motor vehicle insurance for a vehicle used primarily for business … Read More

How long do I have to keep my tax records for?

By law, you must keep business and taxation records generally for five years from the later of when they are prepared, obtained or the transaction is completed. For those with very simple affairs you may be able to retain your records for only two years, however things are not necessarily that straightforward. Simple individual returns Individuals with simple tax affairs … Read More

Use of social media can open you up to a Tax Audit

Posting images and content online showing your latest holiday or purchase seemed like a good idea at the time! Just remember who might be looking at your social media as well. The ATO has always looked at different ways to data match what taxpayers declare in their tax returns against information available from other sources. In the past they have … Read More

Are you ready for the 1 July 2017 super changes?

Part 3: Interaction of the $1.6m pension transfer cap and death benefit payments In last month’s Part 2 of the super changes newsletter, “I have more than $1.6m in pension phase so what are my options?”, we discussed the $1.6m Transfer Balance Cap (“TBC”) and “Transfer Balance Account (“TBA”). Not only does this TBC affect members who are currently receiving … Read More

Helpful App to track your Deductions

The ATO now has an app which will be very helpful in tracking the deductions that you are able to claim against your tax. It is available from both the Apple and Android stores. The app is packed with lots of features as you will see below: For Individuals There is a tool called myDeductions to help track and record … Read More

February 2017 Newsletter

ATO TO REPORT BUSINESS TAX DEBTS TO CREDIT REPORTING BUREAUS From 1 July 2017 the ATO will be allowed to disclose tax debt information to Credit Reporting Bureaus. To avoid being impacted by these new measures you should read our full article. SMSF PROPERTIES – WHAT CAN AND CANNOT BE DONE TO THEM? Are you looking at buying a property, … Read More

ATO to Report Business Tax Debts to Credit Reporting Bureaus

From 1 July 2017 the ATO will be allowed to disclose tax debt information to Credit Reporting Bureaus. The new measure will only apply to businesses with an ABN that have a tax debt of more than $10,000 overdue by more than 90 days, where the taxpayer hasn’t effectively engaged with the ATO to manage the debt (eg by entering … Read More