BSI Accounting in Sydney, Australia | Tax preparation service

BSI Accounting

Locality: Sydney, Australia

Address: Lev 9, 123 Pitt Street 2000 Sydney, NSW, Australia

Website: http://www.arkaccounting.com.au

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25.01.2022 Christmas party 2018 #BSI

25.01.2022 Commission lawyers want to ban cold-call insurance sales Banning cold-call sales on insurance products, scrapping sales commissions, and prohibiting add-on insurance at car yards these are just some of the regulatory changes proposed by the royal commissions top lawyers to stamp out misconduct. A new document containing the policy-related issues arising from the insurance round of the royal commission has been published this week, opening the door to a shake-up of insuranc...e laws and regulations. The submission, prepared by counsel assisting the commission, raised the prospect of an outright ban on selling insurance through outbound call centres, Fairfax Media reported. Should the direct sale of insurance via outbound telephone calls be banned? If not, is the current regulatory regime governing the direct sale of insurance via outbound telephone calls adequate to avoid consumer detriment? the submission said. Outbound calls account for the majority of the sales of a number of life-insurance distributors, including the embattled ASX-listed Freedom Insurance, but ASIC has been highly critical of the aggressive sales tactics often used by the businesses to sell insurance via unsolicited phone calls, the report said. The submission also proposed a ban on the sale of add-on insurance by motor dealers, which the corporate regulator slammed as expensive and often useless. The commission lawyers also questioned the insurance companies treatment of claimants with mental-health conditions, after the inquiry heard that people making mental-health claims were more likely to be surveilled by their insurer. Should life insurers be prevented from engaging in surveillance of an insured who has a diagnosed mental-health condition or who is making a claim based on a mental-health condition? the submission said. Another key issue raised relates to the banning of conflicted remuneration from general and life insurance, as the commission continues to unveil problematic incentives offered to financial-sector workers. The submission additionally questioned whether there was any reason to exempt the insurance industry from unfair contract terms, and whether ASIC should regulate insurance-claims handling, which is currently only policed by the industry. The Insurance Council of Australia and the Financial Services Council, which represents life insurance companies, are yet to comment on the questions, Fairfax said. Editor: Mina Martin

24.01.2022 40 aspiring women entrepreneurs and leaders at a BSI Sponsored event Women in Business an initiative of Peter May, CEO Sydney CBD Chamber of Commerce and Jani...ne Lay-Flurrie CEO of 100mums. Lots of takeaways and tips from an engaging session from Scott Henderson and Kala Philip on building resilience in women - physical, mental and emotional ! See more

23.01.2022 Superannuation guarantee amnesty introduced The Government has introduced legislation to complement the superannuation guarantee (SG) integrity package already before Parliament by introducing a one off, twelve month amnesty for historical underpayment of SG. The Bill incentivises employers to come forward and "do the right thing by their employees" by paying any unpaid superannuation in full, as well as the high rate of nominal interest (but without the penalties for late ...payment that are normally paid to the Government by such employers). Employers that do not take advantage of the amnesty will face higher penalties when they are subsequently caught in general, a minimum 50% on top of the SG Charge they owe. In addition, throughout the amnesty period the ATO will still continue its usual enforcement activity against employers for those historical obligations they dont own up to voluntarily. The amnesty will run for twelve months from 24 May 2018.

22.01.2022 New superannuation rates and thresholds released The ATO has published the key superannuation rates and thresholds for the 2018/19 income year... - The Non-Concessional Contributions cap will remain at $100,000 (although transitional arrangements may apply), and the Concessional Contributions cap will remain at $25,000. - The CGT cap amount will be $1,480,000. - The Division 293 tax threshold will be $250,000. - The maximum super contribution base for superannuation guarantee purposes will be $54,030 per quarter. - The maximum superannuation co-contribution entitlement for the 2018/19 income year will remain at $500 (with the lower income threshold increasing to $37,697 and the higher income threshold increasing to $52,697). The superannuation benefit caps for the 2018/19 income year include: - a low rate cap amount of $205,000; - an untaxed plan cap amount of $1,480,000; - a general transfer balance cap of $1.6m; - a defined benefit income cap of $100,000; - an ETP cap amount for life benefit termination payments and death benefit termination payments of $205,000; and - the tax-free part of genuine redundancy payments and early retirement scheme payments comprising a base limit of $10,399 and for each complete year of service an additional $5,200.

22.01.2022 Have your say on ABN reform The Australian Business Number (ABN) is a key business identifier used by business, government and the community. However, the Black Economy Taskforce found that the ABN system is also used by black economy operators to provide a false sense of legitimacy to their business. The Australian Government is looking at the best way to strengthen and modernise the ABN system, and wants your feedback.... You can make comments and suggestions through a consultation process being run by Department of Treasury. The consultation paper will discuss possible changes to the ABN system including adjusting ABN entitlement rules, imposing conditions on ABN holders, and introducing a renewal process including a renewal fee. The closing date for making a submission is 31 August 2018. This is your opportunity to consider improvements to the ABN system, which will better support ABN data and the growing use of ABNs across a wide range of purposes. Next step: Provide feedback on https://treasury.gov.au/consultation/c2018-t311320/ consultation paper.

20.01.2022 ATO scrutinising car claims this tax time The ATO has announced that it will be closely examining claims for work-related car expenses this tax time as part of a broader focus on work related expenses. Assistant Commissioner Kath Anderson said: ... We are particularly concerned about taxpayers claiming for things they are not entitled to, like private trips, trips they didnt make, and car expenses that their employer paid for or reimbursed. This is no doubt because over 3.75 million people made a work-related car expense claim in 2016/17 (totalling around $8.8 billion), and, each year, around 870,000 people claim the maximum amount under the cents-per-kilometre method. Ms Anderson said that the ATOs ability to identify claims that are unusual has improved due to enhancements in technology and data analytics: Our models are especially useful in identifying people claiming things like home to work travel or trips not required as part of your job . . . simply travelling from home to work is not enough to qualify, no matter how far you live from your workplace. Ms Anderson said there are three golden rules for taxpayers to remember to get it right. One you have to have spent the money yourself and cant have been reimbursed, two the claim must be directly related to earning your income, and three you need a record to prove it. Case studies False logbook: A traffic supervisor claimed over $11,000 for work related car expenses, and provided a logbook to substantiate his claim. However, upon investigation the ATO discovered that the logbook wasnt printed until the following year the taxpayer admitted the logbook was fraudulent and it was ruled invalid. Even though the logbook was invalid, the taxpayer was able to provide other evidence to show that he had travelled at least 5,000 kilometres for work-related purposes, so the ATO used the cents per kilometre method to calculate the taxpayers deduction (but his claim was reduced from over $11,000 to under $4,000). Claiming for home to work travel: A Laboratory Technician claimed $3,300 for work-related car expenses, using the cents per kilometre method for 5,000 kilometres. However, he advised that his employer did not require him to use his car for work; this claim was based on him needing to get to work. The ATO advised the taxpayer that home to work travel is a private expense and is not an allowable deduction his claim was reduced to nil and the ATO applied a penalty for failure to take reasonable care. Credit: NTAA

20.01.2022 Special delivery from our friends at NASC Spirits!! Just in time for Friday drink . Many thanks to Miem, Javier and the team at NASC. Cheers.

20.01.2022 ATO data matching program Visa Holders The ATO will acquire information on holders of a Visa from the Department of Immigration and... Border Protection for the 2017/18, 2018/19 and 2019/20 financial years. It is estimated that records of 20 million individuals will be obtained over the course of the three year period. These records will be electronically matched with ATO data holdings to identify noncompliance with obligations under taxation and superannuation laws, as well as (for example) support compliance activities under Australias foreign investment rules.

19.01.2022 Taxpayer can't explain where she got the money to pay her expenses The Administrative Appeals Tribunal has upheld amended assessments issued by the ATO to a... beauty technician, based on the high volume of money passing through the taxpayer's various accounts when compared with the modest income she had included in her tax returns. For example, in the 2015 income year, the taxpayer had declared income of $61,842, but the ATOs analysis of her bank accounts, records of international money transfers, and casino data suggested she had spent $107,328. The Tribunal noted that, in cases like this, the ATO is effectively making an "informed guess" as to the taxpayers income, but, provided there is a rational basis for the estimate, the ATOs assessment will stand, unless the taxpayer can: - demonstrate the assessment was excessive; and - establish what the correct (or more nearly correct) figure is. After hearing from the taxpayer and witnesses at the hearing, and after reviewing the documents, the Tribunal was not persuaded that the taxpayer had demonstrated that the Commissioners assessments were 'excessive'. In particular, the taxpayers explanation regarding her income and expenditure was not supported by the objective facts in the hearing, being: - the 'churn' through her bank accounts; - the absence of contemporaneous records beyond the bank accounts (for example, she was always paid in cash without receiving pay slips); and - the deficiency in corroborating evidence from other witnesses. In addition to upholding the amended assessments, the Tribunal was also satisfied that the ATO's 75% administrative penalty on top of the tax payable was properly imposed.

17.01.2022 Join us tomorrow, we have Daniel Noble and Chris Gray talking about fractional property investing

17.01.2022 Is your business a hobby? If you sell products or services without intending to make a profit, your activity may be a hobby rather than a business. Its likely youre not in business if your activities are:... - irregular - not aimed at making a profit - small in size and scale - not carried out in an organised manner - conducted in your spare time - mostly for your own satisfaction. If your activities are a hobby, you cant claim GST credits on your purchases and should cancel your GST registration. You can only potentially claim GST credits for items you purchase that help you conduct a business. If youve made any GST claims for your hobby, we can help you amend your past activity statements. A business or a hobby? A hobby is a pastime or leisure activity conducted in your spare time for recreation or pleasure Benefits of being a hobby - Personal enjoyment and satisfaction. - You can gift or sell your work for the cost of materials. - You can do it in your own time or when people contact you. - You dont have the reporting obligations of a business. What is a business? Youre in business, if your activity, as a whole, is commercial with an aim to make a profit. Benefits of being in business - You can apply for an Australian Business Number (ABN) to use in your business transactions. Youll need to use the ABN entitlement tool to check your entitlement before applying. - You can register a .com.au website once you have an ABN. - Youll have access to government information, services and concessions for business. - You can establish a business identity when selling to customers and other businesses. - You can claim tax deductions for business expenses against your taxable income. - It may give you the flexibility to manage your time and work your own hours. How do I know if its a business or a hobby? Its important to understand the differences between a hobby and a business for tax, insurance and legal purposes. Key questions to consider: - Is the activity being undertaken for commercial reasons? - Is your main intention, purpose or prospect to make a profit? - Do you regularly and repeatedly undertake your activity? - Is your activity planned, organised and carried out in a businesslike manner? If you answered yes to most of these questions, youre likely to be running a business, although it depends on your individual circumstances. The ATO website provides further questions, information and examples to help you understand the differences between a hobby and a business. To get an answer specific to your circumstances, you can: - talk to a legal, accountant or business adviser in your area who can help you decide whether youre running a business or a hobby. - get a private ruling from the ATO, which will provide an answer that protects you from penalties and interest.

17.01.2022 Boosting cash flow for employers: Small and medium-sized businesses and not-for-profit entities, with an aggregated annual turnover of less than $50 million (usually based on their prior years turnover) that employ people, may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000), based on their PAYG withholding obligations, in the following two stages: (a) Stage 1 paymentCommencing from the lodgment of activity statements f...rom 28 April 2020,eligible employers that withhold PAYG tax on their employees salary and wages will receive a tax-free payment equal to 100% of the amount withheld, up to a maximum of $50,000. Eligible employers that pay salary and wages will receive a minimum (tax-free) payment of $10,000, even if they are not required to withhold PAYG tax. The tax-free payment will broadly be calculated and paid by the ATO as an automatic credit to an employer, upon the lodgment of activity statements from 28 April 2020, with any resulting refund being paid to the employer.This means that: quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020and June 2020; and monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgments. However, the payment for the March 2020 activity statement will be calculated as being three times the actual amount withheld. Note that, the minimum payment of $10,000 will be applied to an entitys first activity statement lodgment (whether for the month of March or the March quarter) from 28 April 2020. (b) Stage 2 paymentFor employers that continue to be active, an additional (tax-free) payment will be available in respect of the June to October 2020 period, basically as follows: Quarterly lodgerswill be eligible to receive the additional payment for the quarters ending June 2020 and September 2020, with each payment beingequal to 50% of their total initial (or Stage 1) payment(up to a maximum of $50,000). Monthly lodgers will be eligible to receive the additional payment for the June 2020, July 2020, August 2020 and September 2020 activity statement lodgements, with each additional payment being equal to a quarter of their total initial (or Stage 1) payment (up to a maximum of $50,000). The ATO will automatically calculate and pay the additional (tax-free) payment as a credit to an employer upon the lodgment of their activity statements from July 2020, with any resulting refund being paid to the employer. #Stimuluspackage #arkaccounting #bsiaccounting #M0497009800

16.01.2022 Government announces coronavirus stimulus package The government has announced a range of measures to support the economy, business and employment in the face of the coronavirus health crisis. The measures include the below. Cash Flow Boost for employers employers with an aggregated annual turnover of under $50 million (based on prior year turnover) will receive a payment of $2000 to $25,000 from the government to help with cash flow. Eligible businesses will receive a paym...Continue reading

16.01.2022 Team day BSI Accounting drinks

15.01.2022 SG Amnesty still pending: The proposed superannuation guarantee (SG) amnesty is a one-off, 12-month opportunity to self-correct past non-compliance (i.e., from 24 May 2018 to 23 May 2019). It will apply to previously undeclared SG shortfalls for any period from 1 July 1992 up to 31 March 2018. ... The carrot currently on the table is that employers who voluntarily disclose previously undeclared SG shortfalls during the amnesty (i.e., importantly, before the commencement of an ATO audit) will: - not be liable for the administration component and penalties that may otherwise apply to late SG payments, and - be able to claim a deduction for catch-up payments made during the relevant 12-month period. This means that employers will still be required to pay all employee entitlements, including any unpaid SG amounts owed to employees and the nominal interest, as well as any associated general interest charge. Employers who are not up-to-date with their SG payment obligations and who do not come forward during the proposed SG amnesty have been put on notice by the ATO that they may face higher penalties in the future. While the SG amnesty is being actively promoted by the ATO, it is important to be aware that the proposed concessions currently on the table are not guaranteed until the relevant legislation becomes law. Editor: NTAA

15.01.2022 Illegal early release of super ATO recently issued a media release warning the public about promoters encouraging people to illegally access their super early. Illegal schemes will cost members a lot more than the super they access, and may get them into trouble.... As a self-managed super fund (SMSF) trustee, you must ensure that the member has met a condition of release before you release any funds. There are severe consequences for you and your fund if you access your super before you are legally entitled to do so. These could include: - the disqualification of trustees - the fund being made non-complying - an imposition of administrative penalties - prosecution. If any of your members have been involved in a scheme, contact ATO immediately on 13 10 20.

15.01.2022 What the super housing measures mean for SMSFs The ATO has reminded members of SMSFs that they will be able to use their voluntary super contributions to assist with buying their first home, or to make a contribution into their super from the proceeds of the sale of their main residence (under changes passed by Parliament in December 2017). The First Home Super Saver Scheme... The First Home Super Saver (FHSS) Scheme allows SMSF members to save faster for a first home by using the concessional tax treatment available within super. From 1 July 2018, SMSF members can apply to release certain voluntary concessional and non-concessional contributions made from 1 July 2017, along with associated earnings to help buy their first home. Editor: There are various conditions that need to be met in order to take advantage of this measure contact our office if you would like to know more. The downsizing measure SMSF members who are 65 or over and exchange a contract for sale of their main residence on or after 1 July 2018 may be eligible to make a downsizer contribution of up to $300,000 into their super. This downsizer contribution wont count towards their contributions caps or total super balance test in the year its made. However, it will count towards the transfer balance cap and be taken into account for determining eligibility for the age pension. SMSFs must ensure the members contribution has satisfied all relevant conditions and completed the downsizer contribution form before accepting a downsizing contribution.

13.01.2022 Inactive ABNs will be cancelled by the ATO The ATO has recently advised that, in an effort to maintain accurate data, the Australian Business Register (or ABR) periodically checks its records... for Australian Business Numbers (ABNs) and automatically cancels those that appear inactive. Ultimately, a taxpayers ABN may be cancelled if they: - have told the ATO they stopped their business activity; - declared no business income in the last two years; or - have not lodged a BAS or an income tax return in more than two years. To avoid cancellation, the ATO has reminded taxpayers that they need to bring their lodgments up to date, and have reminded sole traders that, regardless of their income, they need to lodge the individual tax return with the supplementary section, as well as the business and professional items schedule.

13.01.2022 Big changes proposed to eligibility for the CGT SBCs The Treasurer has released draft legislation containing new "integrity improvements" to the... CGT small business concessions (SBCs) (i.e., including the 15-year exemption, the retirement exemption, the 50% active asset reduction and the small business roll-over). Due to the governments "continued support for genuine small business taxpayers", it proposes making amendments so that the CGT SBCs can only be accessed in relation to assets used in a small business or ownership interests in a small business. Predominantly, the amendments include additional basic conditions that must be satisfied for a taxpayer to apply the CGT SBCs to a capital gain arising in relation to a share in a company or an interest in a trust (i.e., a unit in a unit trust). This integrity rule is designed to prevent taxpayers from accessing these concessions for assets which are unrelated to their small business, such as where taxpayers arrange their affairs so that their ownership interests in larger businesses do not count towards the tests for determining eligibility for the concessions. Under the proposed amendments, the measure would be backdated to apply from 1 July 2017. This will particularly be the case where such interests are held in an asset-owning entity (i.e., which holds and/or leases business assets across to a separate, yet related, business entity). It is to be hoped that the more draconian aspects of these measures may be scaled back, but due to the retrospective nature of the proposed amendments (i.e., from 1 July 2017), caution is warranted with respect to the SBCs in relation to the disposal of shares or units. Editor: NTAA

11.01.2022 SMSFs and one-stop property shops ASIC has completed their review into the quality of advice in setting up and running a self-managed superannuation fund (SMSF). A key concern of ASICs reportExternal Link was in relation to the establishment of SMSFs for property investments using one-stop shop models. One-stop shop models tend to promote the purchase of geared residential property through an SMSF, arranged by groups of related real estate agents, developers, mortgage brok...ers, accountants and financial advisers. The one-stop shop model creates inherent conflicts of interest that may affect the advice given to a client to set up an SMSF. For example, some of these businesses take advantage of customers with limited or no knowledge of SMSFs or super and have the potential to cause major financial detriment to an individuals financial savings, including: - being given inappropriate or misleading advice to set up an SMSF which may result in members being financially worse off - the advice provider may not adequately consider or explain the obligations of being an SMSF trustee - members may be encouraged into a property purchase at an inflated value, or unaware of undisclosed high commissions. ATO strongly encourage individuals to seek independent professional advice from a licensed adviser before establishing an SMSF and before undertaking any new investment in an SMSF. Where a mistake occurs, SMSF trustees are also encouraged to consider making a voluntary disclosure using the SMSF early engagement and voluntary disclosure service. In these instances ATO will work with trustees to help get their SMSF or super back on track where possible.

11.01.2022 Sydney tax agent banned over cash flow boost rort The Tax Practitioners Board has now terminated the company registration of TLL Tax Pty Ltd and imposed a two-year banning period. An investigation by the regulator found that TLL Tax had lodged a business activity statement on behalf of a client without their knowledge or consent.... The BAS contained false turnover amounts that could not be substantiated, leading the client to become falsely eligible for the cash flow boost payment, which TLL Tax dishonestly applied for. Over $20,000 of the cash flow boost and unjustified GST refunds were subsequently paid into a bank account held by TLL Tax’s sole director, Liying Tong. This payment was retained by the agent and transferred to another account and was not passed on to the client. The TPB also found that TLL Tax had lodged multiple income tax returns and BAS on behalf of a separate client who was no longer trading, without the client’s knowledge or authorisation. The tax refunds were then paid to Ms Tong’s bank account. Despite being confronted by the client, Ms Tong subsequently lodged unauthorised amendments to the client’s tax returns and BAS. She then made an unsolicited offer to purchase the client’s business, which the client declined, and then followed up by offering to apply for COVID-19-related stimulus funds in return for a commission, despite knowing the client was ineligible to receive the stimulus benefits as it had not been trading for a number of years. The TPB also found that Ms Tong has attempted to dissuade the client from reporting the misconduct to the ATO by suggesting she had claimed deductions for them without supporting documentation and that dobbing her in would result in an audit of the client’s affairs. Ms Tong was also found to have provided her myGovID credentials to her staff, providing them with an opportunity to make changes to taxpayers’ accounts and lodge returns without any authorisation, supervision and control. TPB chair Ian Klug said the misconduct of TLL Tax and Ms Tong was of grave concern to the regulator. To fraudulently claim COVID-19 stimulus payments affects the entire Australian community and takes advantage of the pandemic situation we are all living under, Mr Klug said. Ms Liying Tong was in a position of trust, operating in an uncertain environment, and she abused that trust. The termination comes after both the ATO and the TPB warned that it would take firm and swift action against taxpayers and tax agents who attempt to defraud the government’s COVID-19 stimulus measures. Credit: Jotham Lian

10.01.2022 Crowdfunding donations to help drought-affected farmers The ATO is currently offering various support measures to individuals and businesses from drought-affected communities to help with managing their tax and super obligations or who are struggling with their mental health.... It has also recently provided a summary of the potential tax impact of making donations to, or raising funds via a crowdfunding platform for drought relief (as outlined below). For taxpayers wishing to make a contribution to a drought relief fund, it is important to be aware of the tax implications associated with making such donations. For example, donations of $2 or more to an organisation that is a deductible gift recipient will be tax deductible. To check to see if a particular appeal is a registered charity, the ATO has advised that taxpayers should use the ABN lookup function on the Australian Business Register website before donating. For those looking to raise funds through crowdfunding platforms to assist their farming business, payments received from the crowdfunding platforms may be assessable income, depending upon how the funds are used. For example: - Where the funds are used for emergency relief (i.e., such as food and clothing), then the amounts are not assessable. - Where the funds are spent on deductible expenses (i.e., such as purchasing feed for livestock), the amount is assessable income, but will be offset by the relevant deductions obtained, ensuing there is no net taxable outcome. Editor: NTAA

10.01.2022 SCOTTOBERFEST!!! Happy Birthday Scott

10.01.2022 Foreign income If youve derived income from overseas, you will need to declare it.

08.01.2022 Increased scrutiny of home office claims Last year, 6.7 million taxpayers claimed a record $7.9 billion in deductions for other work-related expenses, which includes home office expenses. Reportedly, due to a high number of mistakes, errors and questionable claims for home office expenses, the ATO has recently advised that it will be increasing attention, scrutiny and education on these claims this tax time. ... In particular, the ATO has flagged their concerns relating to taxpayers who are claiming: - expenses they never paid for; - expenses that their employer has reimbursed them for; - private expenses; and - expenses with no supporting records. Whilst additional costs incurred as a direct result of working from home can be claimed, care must be taken not to claim private expenses as well. The ATO has indicated that one of the biggest issues they face is people claiming the entire amount of expenses (e.g., their internet or mobile phone), rather than just the extra portion relating to work. Provided the taxpayer is able to demonstrate that they have incurred additional costs of running expenses (e.g., electricity for heating, cooling and lighting), then these are generally deductible. In contrast, employees are generally not able to claim any portion of occupancy-related expenses (e.g., rent, mortgage repayments, property insurance, land taxes and rates). Taxpayers are warned that the ATO may contact their employers to verify expenses claimed for working from home. In addition, the ATO expects to disallow a lot of claims where the taxpayer has not kept adequate records to prove that they have legitimately incurred the relevant expense and that the expense was related to their work. As with the claiming of deductions in general, supporting records must be kept when claiming work-from-home expenses, which may include receipts, diary entries and itemised phone bills. Importantly, only the additional work-related portion of the relevant expense is deductible. Advancement in technology has allowed the ATO to deploy sophisticated systems and analytics to spot claims that do not add up and claims that are out of the ordinary compared to others in similar occupations, earning similar income. Finally, the ATO has reminded taxpayers of the three golden rules to follow when claiming work-from-home deductions, being: - the taxpayer must have spent the money themselves and have not been reimbursed; - it must be directly related to earning the taxpayers income, not a personal expense; and - the taxpayer must have a record to prove the expense.

07.01.2022 Taxpayer cant explain where she got the money to pay her expenses The Administrative Appeals Tribunal has upheld amended assessments issued by the ATO to a... beauty technician, based on the high volume of money passing through the taxpayers various accounts when compared with the modest income she had included in her tax returns. For example, in the 2015 income year, the taxpayer had declared income of $61,842, but the ATOs analysis of her bank accounts, records of international money transfers, and casino data suggested she had spent $107,328. The Tribunal noted that, in cases like this, the ATO is effectively making an "informed guess" as to the taxpayers income, but, provided there is a rational basis for the estimate, the ATOs assessment will stand, unless the taxpayer can: - demonstrate the assessment was excessive; and - establish what the correct (or more nearly correct) figure is. After hearing from the taxpayer and witnesses at the hearing, and after reviewing the documents, the Tribunal was not persuaded that the taxpayer had demonstrated that the Commissioners assessments were excessive. In particular, the taxpayers explanation regarding her income and expenditure was not supported by the objective facts in the hearing, being: - the churn through her bank accounts; - the absence of contemporaneous records beyond the bank accounts (for example, she was always paid in cash without receiving pay slips); and - the deficiency in corroborating evidence from other witnesses. In addition to upholding the amended assessments, the Tribunal was also satisfied that the ATOs 75% administrative penalty on top of the tax payable was properly imposed.

07.01.2022 Always a great day when we come together as a group and celebrate our achievements and the wonderful culture each of our businesses share and find purposeful ! The 2019 BSI Group Lunch Harbour Cruise. #BSILearning #BSIPeople #BSIWealth #BSI #BSIInnovation

07.01.2022 Had a blast!! Thank you CT Adventure Escape Rooms for the challenge.

07.01.2022 Labor, lets face the facts on fairness, women and franking Bill Shortens Address to the Victorian Labor Conference, Melbourne, 27 May 2018 We will not allow the Government to lecture us when they argue that tax loopholes for the wealthy are actually a secret socialist mechanism to redistribute income to the least well off in this country. ...Continue reading

06.01.2022 https://youtu.be/mE8ieoe5ZY0

05.01.2022 Regulations confirm no SG obligation on JobKeeper payments where work is not performed The federal government has registered the Superannuation Guarantee (Administration) Amendment (Jobkeeper) Payment Regulations 2020. These regulations ensure that amounts of salary or wages that do not relate to the performance of work and are only paid to an employee to satisfy the wage condition for getting the JobKeeper payment are prescribed by the Regulations as excluded salary or wages.... The effect is that these amounts are excluded from the calculations of an employers superannuation guarantee shortfall and the minimum compulsory superannuation contribution an employer is required to make in respect of an employee to avoid a superannuation guarantee charge liability. Likewise, the Regulations recognise that an employer is only entitled to a JobKeeper payment for its employees if the business has suffered a substantial decline in turnover. In these circumstances, it is appropriate to require employers to only make minimum superannuation contributions in respect of amounts that are required to be paid to an employee for the performance of work. Employers would not be required to make contributions in relation to additional amounts paid to satisfy the wage condition (for example, the amount by which $1,500 exceeds an employees normal pay). If you are concerned about the calculation of compulsory superannuation for any employees supported by JobKeeper, please contact our office.

05.01.2022 The Financial Services Council (FSC) has criticised the premise the Labor Party has used from a government expenditure perspective to justify its proposed policy of banning imputation credit refunds for certain retirees in its submission to the House of Representatives Standing Committee on Economics inquiry on the matter. Some participants in this debate argue that refunds are a subsidy or make the tax system non-neutral. The FSC does not agree with this view, FSC economic...s and tax senior policy manager Michael Potter told the committee. Franking credit refunds to super funds and individuals are not specifically listed as a tax expenditure in Treasurys annual tax expenditure statement. This suggests franking credit refunds are not a subsidy, tax concession or loophole. Potter also argued the refunding of imputation credits ensured parity and fairness for all Australian taxpayers. Refunds ensure everyone pays the same total tax at their own tax rate even when theyre at a zero tax rate. Here by total tax rate we mean the sum of personal and company tax, he said. Changes to refunds would mean that some investors, specifically those with lower tax rates, would pay a higher total tax on some investments, specifically shares, which creates an uneven or non-neutral playing field. The FSC also put forward that members of large super funds would also feel the effects of this proposed policy, not just those belonging to SMSFs. Others participating in this debate to discuss this issue said the members of large super funds are largely or completely unaffected by any change to franking credit refunds, Potter said. However, the official figures and our own survey results show this view is not correct. In fact, there could potentially be millions of Australians benefiting from franking credit refunds through membership of large super funds. According to Potter, the FSC survey of 14 large super funds receiving franking credit refunds involving 331,000 member accounts gave a better indication of which superannuants were benefiting from the current policy. Many of the surveyed funds had low average balances, indicating that refunds were likely benefiting numerous people who are not wealthy, he said. Editor:Darin Tyson-Chan

03.01.2022 #roughweek #tgif #friyay

02.01.2022 Scammers impersonate ATO phone numbers The ATO is warning that scammers have adopted Robocall technology to target taxpayers across... the country. Assistant Commissioner Gavin Siebert said: Scammers are sending pre-recorded messages in record numbers and are manipulating caller identification so that your phone displays a legitimate ATO phone number despite coming from an overseas scammer. If the scammers do make contact, they will request payment of a tax debt usually through unusual methods like bitcoin, gift cards and vouchers. Legitimate ways to pay your tax debt are listed on our website. The scammers will threaten you with immediate arrest, attempt to keep you on the line until payment is made and may become rude or aggressive. The technique of displaying misleading phone numbers is known as spoofing and is commonly used by scammers in an attempt to make their interactions with taxpayers appear legitimate.