Tax and Super Newsletter-June-2018

It’s not uncommon for taxpayers to be in dispute with the ATO from time to time, and although the Tax Commissioner may seem invincible, this is not always the case. We look at the best approach to better your outcome. Regarding objections to income tax assessments, see TR 2011/5.

Car claims will be getting the ATO blowtorch treatment this year, especially those 5000 km claims with no valid basis as if it’s a standard deduction (it’s not). We explain how to avoid mistakes. We also discuss work related travel expenses and when you can and can’t claim a deduction for certain trips between home and work.

At some stage, SMSF trustees will need to get their heads around the proportioning rule, so we run over the way this works. When calculating a super benefit, the tax-free component and taxable components of a member’s payment must be paid in the same proportion as the tax-free and taxable components of the member’s interest.

We explain the building and construction industry Taxable Payments Annual Report, which is soon to be expanded to courier and cleaning services. Although most of our clients operate in the creative sector, some still need to be mindful of this reporting of payments to contractors (e.g.,  for architectural work, set construction). For a full list of occupations and services covered by the Taxable Payments Annual Report, see this page. And for examples of buildings, structures, works, surfaces or sub-surfaces, see this page

We brush up on statute barred debts. When a debt can no longer be legally recovered by creditors there can be various tax implications. We look at the statute of limitations state by state.

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