Client Tax Newsletter-August-2018

They say that education comes with a cost, however ignorance can cost you more. Self education is certainly worthwhile considering, especially as there can be tax breaks for the right sort of training.

We explain how to catch up on GST credits that have slipped through the cracks. Know the time limits for BAS revisions if you want to to claim lost GST paid.

Did you now about the exclusion clause the ATO has up its sleeve to deny a claim for a business loss?  So if you are thinking about shifting some taxable profit over to your company to absorb a prior year loss, your plan could be foiled by Division 175.

SMSF trustees are generally family or friends, but that doesn’t mean there won’t be arguments along the way to greater wealth, so we take a look at how to best settle disputes. Another prompt for dispute is between deceased estate beneficiaries if a will doesn’t satisfy expectations, so we examine how this can (sometimes) be rectified.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

 

References:

For the circumstances in which self-education expenses are allowable as deductions to individuals under ITAA36 and ITAA97, see TR 98/9. For travel accommodation and meals, see TR 92/8. The court case mentioned by way of denying travel claims for self-education is Roads and Traffic Authority of NSW v FC of T 93 ATC 4508. See the ATO’s interpretative decision on this case here.

Varying a will through a deed of arrangement is generally CGT free where the requirements of Division 128 is satisfied. See section 128.20. Further guidance is found in TR 2006/14.

For ATO denial of a business tax loss deduction, see more details in ID 2010/48. As well as the general rules on loss deductions, consult the rules applying to company losses in Division 175. Also, here is an explanation of net exempt income.

For the new low and middle income tax offset (LMITO), see page 15 of the PDF explanatory memorandum of the act.