It was about 1990 when the ATO was asked about the tax deductibility of interest on a loan a business may have taken out to repay a tax debt. It was the third time, according to ATO records, that the matter was raised. Of the two previous requests for clarification, one was made as far...

When a legal expense is incurred in relation to the operation of a business to produce assessable income, it is generally allowable as a deduction. Exceptions are when the legal fee is capital, domestic or private in nature, if it is specifically excluded by another section of income tax legislation, or is incurred in earning...

$20,000 write off is only available for small business, unless… Everyone assumes that the $20,000 instant asset write-off is exclusive to eligible small businesses. However there is a hidden gem buried within the small business simplified depreciation provisions that in some circumstances can widen the application of this valuable deduction. It is possible, under certain...

A PDF copy of our Monthly Client Information Newsletter for September 2016 wallace-partners-client-information-newsletter-september-2016 The small business community welcomed the government’s $20,000 instant asset write-off initiative from the last federal budget, but there is an added bonus hidden in the legislation that could open up the valuable deduction to a wider tax-paying cohort than just small business...

ATO warns on franked distributions funded by raising capital to release franking credits The ATO is concerned about arrangements being exploited by some companies for the purpose of releasing franking credits or streaming dividends to shareholders. It says this may attract the operation of the anti-avoidance rule in section 177EA of the Income Tax Assessment...

17.7 million income tax returns lodged 89.2% of tax liabilities were paid on time 1,400 taxpayers (individuals and companies) were prosecuted for income tax matters 96 million transactions were available for pre-filling more than 650 million transactions were reported by third parties for data matching purposes 450,000 reviews and audits resulted in over $1.1 billion...

From sporting clubs or environmental groups to many charity associations, volunteers are an indispensible workforce and support network for many organisations. For most, if not all, having volunteers ready to lend a hand is pivotal in them being able to function or survive. Given that there are many hundreds of volunteers propping up all sorts...

For many people, their tax refund is treated like a mini lottery win. This tax time, consider putting your “gift” from the ATO to good use. Perhaps it’s the modern world we find ourselves in that taxpayers look at their tax refund like it’s a fortuitous windfall gain. But if you look at your refund...

Are you the trustee of an SMSF but also a travel aficionado? Nothing wrong with that; however trustees need to be aware that there can be negative consequences if you are out of the country for too long. If a trustee relocates overseas for an extended period, the residency status of the SMSF, its compliance...

Generally, if you rent out part or all of your home, the rent money you receive is  assessable. This means that you must declare your rental income in your income tax return, but you can also claim deductions for any associated expenses. However, be warned. If you rent put part of your home, such as...