Two-tiered company tax rates: corporate beneficiaries should not ‘trust’ they get it right

Two-tiered company tax rates: corporate beneficiaries should not ‘trust’ they get it right

With seven sitting days left in the current financial year, the Tax Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 (the Bill), that proposes to deny the lower 27.5% corporate tax rate to corporate tax entities with less than $25 million of turnover that derive predominantly (80% or more) passive income has not been debated by the Parliament since 12 February 2018. This Bill, if passed and assented to, will apply from 1 July 2017. That is, for the current income year.

Sladen Snippet - Individuals’ financial affairs at risk of being reported to foreign jurisdictions by the ATO

Sladen Snippet - Individuals’ financial affairs at risk of being reported to foreign jurisdictions by the ATO

Australia is obligated under Automatic Exchange of Information (AEOI) regimes to automatically exchange financial account information with foreign jurisdictions.

Sladen Snippet - New (financial) year, new property requirements

Sladen Snippet - New (financial) year, new property requirements

As has been standard fare for the property industry over the last few years, a new financial year will bring in a number of changes to the development and sales process. It is important that developers are aware of these changes, and begin taking steps to comply with the new requirements in order to avoid any delays or other adverse implications once the amendments take effect.

Sladen Snippet - Minimum wage increase of 3.5 per cent as of 1 July 2018

Sladen Snippet - Minimum wage increase of 3.5 per cent as of 1 July 2018

Today, the Expert Panel for annual wage reviews (Panel) of the Fair Work Commission (Commission) has held that it is appropriate to increase the modern award minimum wages by 3.5 per cent. The national minimum wage (NMW) will now be $719.20 per week (that is, $18.93 per hour). The determinations and order giving effect to the Panel’s decision will come into operation on 1 July 2018.

Welcome amendments to the ATO’s processes in forming a fraud and evasion opinion

Welcome amendments to the ATO’s processes in forming a fraud and evasion opinion

On 17 May 2018, the ATO updated its practice statement (PS LA 2008/6) providing for a more robust and comprehensive process before the Commissioner can form an opinion there has been fraud or evasion.  Where the Commissioner forms an opinion there has been fraud or evasion by a taxpayer in a particular income year, he then has an unlimited amendment period in which to raise an amended assessment outside of the usual 2 or 4-year time limits.

Check your mail and ensure your mailing address is up to date! Don’t risk criminal offences with the ATO.

Check your mail and ensure your mailing address is up to date! Don’t risk criminal offences with the ATO.

A taxpayer has been charged with offences after losing a Victorian Court of Appeal case in which the taxpayer argued that the Australian Taxation Office (ATO) could not prove service of a final notice requiring him to lodge four outstanding income tax returns by a specified date.

Sladen snippet – Extension of NALI to non-arm’s length expenses measure before parliament

Sladen snippet – Extension of NALI to non-arm’s length expenses measure before parliament

The Government has released a bill to extend the application of the non-arm’s length income (NALI) rules to income and capital gains gained or produced under arrangements involving non-arm’s length expenditure. The genesis of this measure was non-commercial limited recourse borrowing arrangement (LRBA) loans but the proposed legislation applies to all arrangements where there is non-arm’s length expenditure or costs and also to arrangements where assets are acquired for under market value consideration.

Event: Notifiable Data Breaches Act 2017 and its implication on Privacy Governance

Event: Notifiable Data Breaches Act 2017 and its implication on Privacy Governance

Sladen Legal Principal Lawyer - Cyberlaw, Helaine Leggat MAICD, will present the upcoming Australian Institute of Company Directors webinar -  'Notifiable Data Breaches Act 2017 and its implication on Privacy Governance' - on Wednesday 18th July at 12 noon.

Lessons from Stojic: it is better to under promise and over deliver when negotiating payment arrangements with the ATO

Lessons from Stojic: it is better to under promise and over deliver when negotiating payment arrangements with the ATO

The Commissioner of Taxation (Commissioner) has power pursuant to section 255-15(1) of Schedule 1 of the Taxation Administration Act 1953 to permit a taxpayer to pay its tax-related liability by instalments in accordance with a payment arrangement. The recent Federal Court decision of Stojic v Deputy Commissioner of Taxation [2018] FCA 483 (Stojic) dismissed an application by the sole director and shareholder of a company to review a decision by the Commissioner to decline to exercise that power illustrates two major points.