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
The Victorian Government introduced the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Bill 2021 that, among other amendments, will impose a significant new tax on unrealised gains arising from the rezoning of land in Victoria.
Are you an Australian resident for income tax purposes?
The Australian Taxation Office (ATO) is concerned as foreign income and capital gains continue to be incorrectly classified as gifts or loans in a bid to avert or evade tax.
With the increased use of private companies to hold wealth or operate businesses, parties in family law property settlements are more and more likely to find themselves in unchartered territory when dividing the net asset pool.
Extracting cash or assets from private companies can trigger significant and unexpected tax issues.
The Australian Taxation Office (ATO) has released a draft Practical Compliance Guideline on Intangible Arrangements (PCG 2021/D4) in which it details its compliance approach and the risk assessment framework it plans to employ when considering the risk profile of intangible arrangements (IAs) operating between interna
With many farmers returning home from the break and land prices booming throughout much of the WA Wheatbelt, the inevitable question will come from a client or two, “how much tax will I pay if I happen to sell the farm?” A fair question, but with the number of variations in landholding structures, it’s a question that
The federal government has registered the JobMaker Hiring Credit rules (‘JobMaker’).
Complex but targeted to create employment opportunities, the rules provide some clarity for employers seeking to claim under the scheme.
As Victoria gradually emerges from lockdown and the economy is on the verge of coming out of a recession, it’s a clear sign that things are heading in the right direction, but we’re not out of the woods yet.
The Australian Federal Budget was handed down on 6 October 2020, and outlined various economic stimulus measures with the intent to support Australia’s economic recovery through the COVID-19 pandemic and beyond.
The Technology and Innovation team at RSM share practical GST insights from within the developing Australian Space Industry.
Goods and services tax (GST) in Space - is the supply of new and developing technology taxable?
The COVID-19 Pandemic has presented great challenges across the globe and will continue to do so for the foreseeable future as governments tread a fine line between the very real public health concerns and trying to jumpstart faltering economies.
With all the changes the Australian government announced around the JobKeeper extension (JobKeeper 2.0 and 2.1), there has been some confusion around the Government changing the employee eligibility date from 1 March 2020 to 1 July 2020.
In response to the significant impact of coronavirus restrictions on business owners in Victoria, and likely impacts to follow in NSW, Treasury has announced further changes to the JobKeeper V2.0 proposals originally announced in July.
In last year’s State Budget, the Queensland Government unexpectedly announced an immediate 2% surcharge on the Queensland land tax liabilities of foreign companies and trustees of foreign trusts (collectively, “foreign owners”).
With speculation rife over the future of the JobKeeper scheme, we explore what has worked with the scheme, what hasn’t and possible changes to the scheme that may be considered when the Treasurer releases his economic update and the results of the Treasury review into the scheme.
Established in July 2016, the ATO's Top 1,000 Tax Performance Program is in its fourth year of establishing greater assurance that large public and multinational taxpayer groups are paying their ‘fair share of tax’.
The ATO has released long-awaited guidance on Division 7A minimum yearly loan repayments and COVID-19.
However, given the late release of the guidance and the onerous requirements to be satisfied in the application form it is arguably too little, too late.
The foundations of a sound tax system are built on the notions of efficiency, equity and simplicity. Put simply, this means that the tax system should minimise distortion, apply fairly, and be clear and concise in its application.
In an effort to promote further investment by Australian business, the Federal Government has announced an extension of the instant asset write off to 31 December 2020.
Legislation is expected to be introduced shortly.
In times of crisis, it is normal to overlook certain aspects of life as health and safety become a focus. As is with the common cliché, the reality is that taxes are still a prevailing issue for everyone despite the challenges they may be facing.
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:
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.