The ATO has been highlighting their concerns with related party loans in SMSF borrowing arrangements (LRBAs), and particularly whether they have been made on commercial terms.
The South Australian case of Brine v Carter [2015] SASC 205 is a warning to executors who wish to claim the deceased’s superannuation for themselves.
Employment agency contracts, for payroll tax purposes, can be much broader than traditional labour hire or employment agency arrangements. The recent decision in Qualweld Australia Pty Ltd v Chief Commissioner of State Revenue [2015] NSWCATAP 249 highlights how payments to genuine subcontractors can trigger payroll tax liabilities under the ‘employment agency’ provisions.
In December last year, the Financial Systems Inquiry recommended removing the ability of SMSF trustees to borrow to acquire assets using limited recourse borrowing arrangements.
There has been controversy over the impact of low or no interest related party loans to self-managed superannuation funds (SMSFs) since the release last year of the ATO’s view that these loans can result in non-arm’s length income for SMSFs.
Recent amendments to the Income Tax Assessment Act 1997 mean that many companies can offer more tax effective incentives to their employees under an employee share scheme (ESS).
Draft legislation (the Tax Laws Amendment (New Tax System for Managed Investment Schemes) Bill 2015) has been released to amend the public trading trust rules so they no longer apply to unit trusts where superannuation funds (including SMSFs) hold 20% or more of the issued units. These amendments will apply from the date the Act receives royal assent, but it appears that, once royal assent is obtained, the provisions will apply for the financial year commencing 1 July 2015.
It is common for the Commissioner of Taxation to issue a statutory demand against a company and express the debt as a single amount, being the total deficit debt stipulated on a Running Balance Account (RBA). No breakdown is provided in the statutory demand showing the actual composition of the debt as between primary taxation obligations.
Commencing 1 July 2015 there will be an increase in the national minimum wage. Employers will need to be aware of the increased costs.
Do you transport passengers in your car through Uber? Do you use a website or app to rent out rooms through Airbnb? Do you provide other services through the ‘sharing economy’?
Credit providers should review their processes and procedures to make sure credit information is managed in line with their obligations under the Privacy Act.
Does your business have processes in place to handle data breaches? Have you considered the consequences for your business if the personal information you hold is hacked, inadvertently disclosed or stolen?