Monthly Archives: August 2011

Frankly my dear I’m confused

It was welcome when it came and now it’s got everyone hot and bothered. I am referring to the corporation law amendment that allowed dividends to be paid if the balance sheet test was satisfied, no need that dividends can only be ‘out of profits’. Section 254 T of the Corporations Act provided that no … Continue reading Frankly my dear I’m confused

Trust investments- ATO says capital and not revenue

The concessions available in the case of capital gains tax, such as the discount, have been a significant factor encouraging taxpayers opting to treat gains as capital and not revenue. But now the Tax Office is getting tougher. First it happened in the case of private equity firms claiming CGT treatment for ‘carried interest’ (see … Continue reading Trust investments- ATO says capital and not revenue

 Taxes never felt better- Warren Buffet has the dough to match

As highlighted in my blog on missing millionaires in the U.S, the books of the Government in the U.S have never been more dismal. Tax revenue has been consistently declining and the government has just managed to raise its debt ceiling. Warren Buffet’s piece in the New York Times takes aim at the U.S Congress … Continue reading  Taxes never felt better- Warren Buffet has the dough to match

Tax adviser liability – Nodding client is no excuse

The High Court in New Zealand in Jones v WHK Sherwin Chan & Walshe HC Wellington [2011] NZHC has awarded $4.29m against a taxpayer’s former accountants (SCW) for failing to advise on the implications of the CFC rules when restructuring the business of their client. See Bob Jones wins $ 4m over bad tax advice. … Continue reading Tax adviser liability – Nodding client is no excuse

Wrong side of deductible business losses – assessable income

The deductibility of losses is inextricably linked to the question whether the taxpayer is carrying a business. Factors contributing to ‘carrying on of a business’ have been the subject of many a decision whenever tax is disputed. The basis of decisions can be confusing and sometimes contradictory, especially when the GFC plays a part: Smith … Continue reading Wrong side of deductible business losses – assessable income

Triple to double A: Declining tax revenues, missing millionaires and incognito companies

In the wake of the debt crisis and the smashing of the triple AAA rating in the U.S, interesting but disturbing statistics have been released by the IRS. Income in the U.S dropped by 15.2 % in 2009 and not enough tax is being collected. Adding to the woes, the spiraling debt has reignited the … Continue reading Triple to double A: Declining tax revenues, missing millionaires and incognito companies

Online tax collection- Amazon & Visa    

With online retail surging ahead and leaving behind our credit card limits it is no wonder the tax authorities are looking far and wide for tax collectors. According to a report the internet economy in Australia was worth about $50 billion adobe indesign cs5 download in 2010, 3.6 per cent of gross domestic product, and was forecast to … Continue reading Online tax collection- Amazon & Visa