Latest News

Hot Issues
spacer
Sub-trusts ‘redundant’ under final Div 7A ruling
spacer
Tax Office homing in property deductions, SMSFs warned
spacer
ATO adds indebted sole traders to credit referrals
spacer
State and Federal Covid support --- Aug 2022
spacer
ATO casts net wide when it comes to taxable business income
spacer
Largest natural gas produces by country from 1970-2021
spacer
NALI ‘a special problem for SMSFs’
spacer
Tax time tips
spacer
Census 2021 Data
spacer
Single Touch Payroll: Phase 2 deferral reminder
spacer
Largest inflation rates by country in Oceania
spacer
Write a business plan
spacer
Be wary of trust disclaimers, ATO warns
spacer
Tax time guide offers path through 100A
spacer
Car allowance increase ‘welcome news’
spacer
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
spacer
ATO zeroes in on work expenses, crypto investments
spacer
Forget the Tim Tams in your WFH claim, say ‘fun police’
spacer
Inflation will force a third of businesses to raise prices
spacer
Year-end tax planning
spacer
World GDP Ranking (1960~2025)
spacer
100A ruling ‘turns tax avoidance logic on its head’
spacer
Company directors must register - all you need to know
spacer
Be alert for phoenix activity, businesses told
spacer
Equifax signs data agreement with ATO
spacer
E-invoicing will reduce emissions, says PwC
spacer
Largest cities in the world 1500 to 2100
spacer
Last chance to claim the loss carry-back
spacer
Changes to recovery loan scheme for small and medium enterprises
spacer
About the cash flow forecasting template
Article archive
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 2 of, 2015 archive
spacer
SMSFs may be missing out on allowable deductions
spacer
Change to Early Access Rules
spacer
Capital Gains Tax – which year?
spacer
Checklist for Employers Year-end
spacer
Year-end Tax Planning – Small Business
spacer
Year-end Tax Planning – Trusts
spacer
Reminders and Tax Strategies for SMSFs pre-year end
spacer
Year-end Tax Planning – Individuals
spacer
Overtime Payments May Eliminate Claims for Unfair Dismissal
spacer
Tips and traps for acquiring SMSF assets from related parties
spacer
ACCC issues scam warning
spacer
SME Dispute Resolution
spacer
Land Tax – Victoria
spacer
R&D incentives at risk
spacer
ATO adds ‘hot issue’ to its SMSF target list
spacer
Additional Super Contributions Not Appropriate for all
spacer
Issues arising from an underpaid pension
spacer
Salary and Superannuation after the death of an employee
spacer
IPA calls for zero pc tax rate
spacer
Australian Government - Budget 2015
spacer
Budget 2015 - some professional opinions
spacer
Looming end to SMSF Borrowings?
spacer
ATO warns SMSFs on franking credits scheme
spacer
Lump Sum Payments - Employer Reporting
spacer
Small business tax cuts 'not enough', says IPA
ATO warns SMSFs on franking credits scheme

 

The tax office has warned members of self-managed super funds against claiming franking credit benefits .......

..... by channelling dividends from shares in private companies through SMSFs.

             

The ATO last week issued taxpayer alert TA 2015/1 warning SMSF members against the practice.

According to the ATO, this occurs when a member of an SMSF with interests in a private company transfers their interests to an SMSF and then distributes retained profits and franking credits through the SMSF.

The SMSF then claims the franking credit tax offset, resulting in the tax paid by the company being refunded directly to the SMSF, which can then be distributed to the member tax-free.

“We are closely scrutinising SMSF members suspected of avoiding their tax responsibilities by channelling company profits through their SMSF,” ATO deputy commissioner Tim Dyce said.

As a result of this activity, the ATO will also consult on the application of relevant anti-avoidance provisions and consider a public ruling on such arrangements.

The ATO believes SMSF members approaching retirement age are more likely to get involved in these schemes because profits from shares are tax-exempt since they are treated as supporting the payment of pensions.

Regular taxpayers involved in similar arrangements should review their taxation affairs and consider seeking independent advice, the ATO also stressed.

“The ATO may undertake compliance activity seeking to apply the taxation and superannuation provisions, including anti-avoidance rules to such arrangements,” Mr Dyce said.

“We encourage SMSF members who think they may be involved in such arrangements to contact us and make a voluntary disclosure or seek a private ruling from us.

“In our actions, we will engage with affected SMSF trustees and members to develop pragmatic options to address the tax and superannuation consequences of the arrangement.”

 

 

Monday, 04 May 2015
Staff Reporter
www.accountantsdaily.com.au

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2022 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922. Site by Acctweb