Is Santa a tax cheat? – December 2014

Is Santa a tax cheat? – December 2014

A lighter look at the complexity of Australian taxation laws.

Dear Santa,

Thank you for the opportunity to provide tax advice for your operation. We’re pleased you have initiated this advice as the Australian Taxation Office (ATO) is looking closely at any business or individual that operates within Australia but has significant transactions or operations internationally. The fact that you run a global business that generates no profit but ‘gifts’ millions of toys each year produced by your offshore factory, have never lodged a tax return or paid tax in Australia, is likely to trigger an investigation. We have identified a number of issues as a starting point for further discussions. These are:

5 steps to a tax free Christmas – December 2014

5 steps to a tax free Christmas – December 2014

OK, we know tax is not the most exciting thing to think about in the lead up to Christmas. But these are the questions we get asked all the time, and if you are familiar with all the tricks and traps, you can save yourself and your business hundreds if not thousands of dollars.

1. Spontaneous, well thought through team gifts

The key to Christmas presents for your team is to keep the gift spontaneous, adhoc, and from a tax perspective, below $300 per person. $300 is the minor benefit threshold for Fringe Benefits Tax (FBT) so anything at or above this level will mean that your Christmas generosity will result in a gift to the Tax Office as well at a rate of 47%. To qualify as a minor benefit, the gifts also have to be ad hoc – no once a month gym membership payments or giving the one person multiple gift vouchers amounting to $300 or more.

Activity Statement Reminder – December 2014

Activity Statement Reminder – December 2014 As of this current financial year, the ATO has implemented a new policy regarding IAS and BAS forms. In an attempt to reduce the amount of paper forms distributed by mail, the ATO proposes to send you an email alert rather than mail you the paper form. If you haven’t received either a paper … Read More