July 2014 Tax Talk – Business Accountants Cairns

By 1 July, 2014News
Read The July Tax Talk 2014 Here

In this issue of Tax Talk, we cover:

Business Viability Assessment Tool is now live. A tool produced by the ATO that allows tax agents and current businesses establish whether or not a business is feasible.

Work-Related Deductions are a focus point of the ATO. They have warned they will be giving particular attention to a specific set of work-related expense claims.

A New ATO Campaign has been established to make taxpayers wary of potential tax-related scams, which have been on the rise as of recent. These scams usually proliferate through email.

ATO Debt Collection is currently in review by the Inspector General of Taxation, thanks to the level of uncollected taxes rising sharply, most of which is owed by small business.

Project DO IT has been enjoying success with several disclosures lodged, and strong indication that many others will disclose their own offshore income.

SuperStream will begin July 1st, under which employers will be required to make super contributions on behalf of employees via electronic payments. All superannuation funds will also need to be capable of receiving electronic payments.

New Penalties will be available for the ATO to dish out to non-compliant SMSF trustees, increasing appropriateness and fairness of cases. Previous penalties will remain options, while several other forms of penalisation will be implemented.

Uncommercial Borrowing Arrangements may now be be subject to high tax rates, with all income derived being taxed up to 45% including various forms of capital gain. This is specifically in relation to SMSF income.

Using Dividend Franking Credit can significantly reduce the amount of tax payable on SMSF funds.