Ensuring your company is operating within the tax laws through effective tax risk management
A key aspect of corporate governance involves tax risk management.
Companies have to be comfortable that their tax decisions do not fall foul of the tax law and are not subject to adverse scrutiny by the tax authorities. RSM can help companies manage this exposure in a number of ways.
Our tax risk management services include:
representing the company in a tax audit or review, including negotiating with tax authorities to settle a dispute
preparing objections to unfavourable tax assessments
advising boards of directors on the risks associated with tax schemes to be entered into by the company
preparing reasonably arguable position papers to document the position taken in respect of the interpretation of a tax law
carrying out prudential reviews or 'health checks' on various tax areas to identify any tax risks or exposures
applying for rulings from the ATO to provide certainty on tax outcomes
By and large, the JobKeeper Payment scheme is a much-welcome lifeline for employees and employers alike, especially now that the payments have started to flow. However, from an employer’s point of view, they need to be aware that they may be forced to bear some of the costs of administering the scheme.
Calculating GST turnover for the JobKeeper Payment scheme – cash, accruals, or something else?
One of the critical aspects for an employer to consider and satisfy as part of the JobKeeper Payment Scheme is whether it has satisfied the decline in turnover test.
Land tax relief for landlords and tenants following the release of the Mandatory Code of Conduct
The National Cabinet recently signed off on the Mandatory Code of Conduct (“the Code”) for commercial landlords and tenants, which included a set of “good faith leasing principles”.
In recent days, the Federal Government has made updates to the JobKeeper payment Fact Sheet, providing clarity surrounding eligibility for certain individuals and consolidated groups, and extending the eligibility criteria for eligible charities.
Coronavirus (COVID-19) is a once in a 100-year event with a sudden and significant impact, prompting a financial crisis in markets and businesses across the world. The global nature of the crisis means that supply chains are disrupted, while revenue in many industries has collapsed.
On 20 December 2019, the Federal Court handed down its decision in the case of Commissioner of Taxation v Eichmann  FCA 2155. The case considered the meaning of an ‘active asset’ for the purposes of the small business capital gains tax (CGT) concessions.
Fringe Benefits Tax (FBT) arises when an employer provides a benefit to an employee (including Directors) in place of salary or wages and may include the provision of a benefit to an employee’s associate.
Farmers are set to lose tax deductions for vacant land – despite calls to Government to change the proposed legislation.
The Government provided assurances “…farmers will be fully protected from any unintended consequences of the bill”.
In late 2017, the Australian Federal Government introduced an annual vacancy fee to be levied on foreign owners of residential property, where the property is not occupied or generally available on the rental market for at least 6 months in a 12 month period.
Following the proposal for reduced tax rates for corporate entities in 2016, the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 (the Bill) was ultimately defeated in the Senate on 23 August 2018 by a vote of 36 to 30.
While the legislation is transitioning, some have been left confused about the application of reduced corporate tax rates and the details of eligibility criteria during this state of limbo. To provide some clarity, we take a closer look.
New guidelines for private use exemptions of eligible motor vehicles for Fringe Benefits Tax (FBT) - ATO says yes to making a quick stop to grab a coffee (as long as it doesn’t add more than 2kms to your trip to work and is infrequent) but no to heading to cricket practice after work.
R&D tax reforms, as announced in the 2018-19 Federal Budget, are steps closer to implementation with the Treasurer and Minister for Jobs and Innovation releasing draft legislation proposed to enact the changes.
The Federal Government has passed legislation that will require purchasers of new residential properties to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement. The measures were first announced in last year’s Federal Budget.
The legislation specifies:
It’s the third budget handed down by Treasurer Scott Morrison and for those of us in the innovation space, a whole lot to digest.
After poring over the detail, I’ve created a summary of notable items for your reading pleasure (disclaimer: it’s not all pleasant).
The Government announced in the 2017 Federal Budget that it would be making changes to the legislation regarding Rental Property Deductions under the guise of “reducing pressure on housing affordability”.
The Australian Taxation Office (“ATO”) have recently issued Taxation Ruling TR 2017/1 to provide guidance on the application of both section 8-1 and section 40-730 of the Income Tax Assessment Act 1997 (“ITAA1997”).
The Government has announced it will strengthen the anti-avoidance measures for multinationals recently legislated and previously announced in the 2015/16 Federal Budget by introducing the following additional measures:
Increase in small business entity turnover threshold from $2 million to $10 million;
Increase the unincorporated small business tax discount;
Amendment to Division 7A to allow self-correction for inadvertent breaches.
Since tax was first collected, a fundamental feature of tax law has been the unconditional secrecy surrounding taxpayer data. In Australia that position changed in June 2013 when Australia’s tax secrecy laws were amended, directing the ATO to publicly report certain large company tax data.
Some in the political media would have us believe Tax Reform 2016 is dead before it starts, and that because Australia currently faces a failure of political leadership – meaningful tax reform is difficult at the best of times, but at present, there simply is not the depth of character, or belief, in Canberra or the state capitals to push through the necessary chan
The Abbott Federal Liberal-National Party Coalition Government was elected in September 2013 on a platform of 'economic repair' which included promises to conduct two related white paper processes leading into the next federal election: a white paper on tax reform, and a white paper on the reform of Australia’s Federation.