Click here to download our November Newsletter: efa-tax-and-super-newsletter-november-2016

What’s covered:

If you have the unfortunate consequence of having a tax debt, there are certain steps that can be taken to help ease the pain. We look at the relief available.

Sometimes a valuation is necessary for tax purposes, but there are various ways to go about getting one. There are similarities also in getting deductions right — especially if these deductions are in relation to home office claims.

The ATO has spelled out the areas of SMSF compliance it will be focusing on for the 2016-17 income year. We run over the hot spots.

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

For further research:

Mention is made in the above article on the SMSF compliance focus for 2016-17 about the Practical Compliance Guide 2016/5. Click here for a copy, to find out more. For a definition of dividend stripping arrangements, see here. And for a description of personal income diversion arrangements, see here. Details about the ATO’s “early engagement and voluntary disclosure service” can be found here.

Market valuations for tax purposes guidance can be found here.

For the home office deductions article, taxation ruling TR 93/30 specifically discusses two categories of such expenditures: (i) heating/cooling and lighting expenses, and (ii) decline in value of depreciating assets (ie depreciation). The cents per hour running expenses deduction details can be found in PS LA 2001/6.

Regarding managing tax debt, the ATO’s automated hotline for repayments is 13 72 26 (if you wish to do it yourself).

For tax debts repayments, you can find the ATO’s payment plan calculator here. And practice statement PS LA 2011/12 contains guidance on the circumstances in which the ATO will remit GIC. For deductions of GIC and SIC payments, see here. And for more on the deductibility of interest incurred on moneys borrowed to pay income tax, see this ATO page.

Disclaimer: All information provided in this newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.