Tax Bites

Tax Bites are regular, short communications containing a snapshot of various common tax issues of interest to professional advisers. Here are some of our previous Tax Bites. Should you wish to subscribe to receive Tax Bites via e-mail, please click on the "Subscribe to Tax Bites" button to the right.

Other things to consider when there is a debt forgiveness without a distributable surplus

22nd September 2015

Where a private company has forgiven a loan to a shareholder, a deemed dividend arises under Division 7A, although the deemed dividend should be reduced to nil where there is no distributable sur... read more

Trusts and short vesting dates

18th August 2015

Some trusts have short vesting dates – for example where the settlor believed that beneficiaries should control their own destinies, particularly children when they reach a certain age. ... read more

Sale of shares to non-resident may be GST-free rather than input taxed

15th July 2015

Generally when shares in an Australian company are sold by an Australian entity, most people assume that the sale of shares is input taxed for GST purposes. While this is correct for sales ... read more

Trap re unpaid present entitlements and the small business maximum net asset value test

23rd June 2015

The Commissioner has released his draft ruling on unpaid present entitlements ("UPE") and the small business maximum net asset value test ("MNAV test") - and it's pretty g... read more
1 2 3 4 5 6 7 8 9 10 11 12 13 14

About Tax Bites

Tax Bites are general in nature and are not a substitute for specific advice. They are the opinion of Tax Advisory Specialists, and the ATO or the Courts may take a different view. They are not updated for changes in the law or the interpretation of the law since publication.

 

Request Advice

 

 

Latest Tax Bite

ATO’s Private Groups Justified Trust program

Tax Advisory Specialists recently attended a workshop with Deputy Commissioner Tim Dyce and Assistance Commissioner Gregory Dick on the ATO’s Private Groups Justified Trust program.
 
In broad terms, Justified Trust is an approach by the ATO to build and maintain community confidence that taxpayers are paying the right amount of tax.
 
The Justified Trust program is aimed towards large private groups, market leaders and groups of specific interest.  However, the principles of Justified Trust are also applied to medium sized and emerging private groups (including where net wealth is as little as $5 million).
 
So the ATO’s approach to Justified Trust will most likely apply in some way or another to your larger clients.
 
For justified trust to be established across a private group, the following four elements need to be met:
  1. Effective tax governance demonstrated;
  2. Risks flagged to market are not present or appropriately mitigated;
  3. Tax outcomes from new and significant transactions are explained; and
  4. Differences in accounting and tax results are explained.
Effective tax governance is a critical element.  It comprises the following principles:
  1. Accountable management & oversight;
  2. Recognise tax risks;
  3. Seek advice;
  4. Integrity in reporting;
  5. Professional and productive working relationship;
  6. Timely lodgement and payments; and
  7. Ethical and responsive behaviour.
It is worth thinking about how your private group clients would rate against the above criteria.
 
And if you need to seek specialist tax advice, remember we are here to help.

Share on
View Past Tax Bites Subscribe to Tax Bites
Want to know more?

If you would like to know more about how we can help you, please contact us via:

Number0414 965 653
Copyright © 2012 Tax Advisory Specialists Sutherland Shire Web Design