ATO tackles phoenix activities
Labour hire businesses are a focus of the government’s efforts to deter and disrupt illegal phoenix behaviour and black economy operators.
Important Dates and Reminders
GST and Selling Property
When you sell property, you may be carrying on an enterprise. If you are carrying on an enterprise, you will need an Australian business number (ABN) and register for GST – even for one-off transactions.
Tax debt credit rating link
New legislative powers will be given to the Australian Taxation Office (ATO) which will allow them to report large outstanding tax debts to credit reporting bureaus. This reporting may affect a business’s credit rating for current and future finance.
Unreported foreign income
The ATO has warned taxpayers that it holds data on over $100b held in offshore accounts and uses sophisticated analyses to identify 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 paid…
Small business $11.1b tax gap
The ATO has estimated that the 2015/16 income tax gap for the small business sector is approximately 12.5% or $11.1b, with over $7b (or over 64% of the total value of the gap) being attributed to black economy behaviour.
Trust income = personal services income
The AAT has held that the amounts paid by the clients of a taxpayer to a trust for professional services provided by the taxpayer and declared by the taxpayer as distributions from the trust and trust income, were ordinary income as well as personal services income of the taxpayer.
Div 7A loans: Interest rates
The benchmark interest rate for the 2019/20 income year for Div 7A purposes is 5.37% pa. This is relevant to private company loans made or deemed to have been made after 3 December 1997 and before 1 July 2019, and to trustee loans made after 11 December 2002 and before 1 July 2019.
ATO receives 230 tip-offs per day
The ATO has revealed that it has received a record-breaking 15,000 tip-offs to its Tax Integrity Centre in the first quarter of this financial year as the agency continues its focus on the black economy. The ATO plans to visit 10,000 businesses this year as part of its plan to deal with the black economy.…
SMSF: Roll over benefits at risk
From 1 October 2019, SMSFs with outstanding annual return lodgments are at risk of not receiving roll over benefits or employer super guarantee (SG) contribution payments for its members.
Cyber Safety
Cybercriminals are active during tax time and will try various ways to get their hands on your money or customer details. Stay alert at all times and remain one step ahead of cybercriminals. Here are some tips to keep your business safe online this tax time. Use multi-factor authentication where possible and don’t share your…