Latest News

Hot Issues
spacer
GST fraudsters to face ‘full force of the law’: ATO
spacer
Social media scams dominate losses in 2024
spacer
Managing your business’s tax debts
spacer
Warning on ATO data matching “lifestyle” assets and your business
spacer
ATO issues alert on guarantee arrangements and Division 7A
spacer
E-Commerce Laws You Must Know To Run An Online Business
spacer
Resources and Tools to help our Clients build their future
spacer
Most Powerful Economies in Europe | 1960-2024
spacer
ATO reveals small business hit list to combat tax debt
spacer
What are the FBT implications of Employee Christmas Parties and Gifts?
spacer
Assess a business before you buy it
spacer
Christmas Parties and Taxi Fare/Rideshare – FBT implications.
spacer
Practitioners cautioned on ATO’s top target areas for GST
spacer
ATO to target growing businesses in latest compliance blitz
spacer
Our SG compliance results are here
spacer
Top 20 Most Watched Christmas Movies ever - pre covid
spacer
A Unique Advent Calendar
spacer
Businesses ghosting the ATO targeted in debt collection blitz
spacer
Claiming the tax-free threshold: getting it right
spacer
Aussies tired of ‘dodgy tax criminals’, warns ATO
spacer
Protect your small business by following these essential steps.
spacer
Super guarantee a focus area for ATO business debt collection
spacer
Controversial ‘Airbnb tax’ set to become law
spacer
Withholding for foreign residents: an ATO focus area
spacer
1 in 3 crypto owners confused about tax, study reveals
spacer
20 Years of Silicon Valley Trends: 2004 - 2024 Insights
spacer
ATO reveals common rental property errors from data-matching program
spacer
New SMSF expense rules: what you need to know
Article archive
spacer
Quarter 4 October - December 2024
spacer
Quarter 3 July - September 2024
spacer
Quarter 2 April - June 2024
spacer
Quarter 1 January - March 2024
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
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 2024 - All Rights Reserved | 333 Canterbury Road, Canterbury VIC 3126 | Tel: 03 9509 3911 Site by Acctweb