Friday 6 Dec 2019
*

Latest Accounting News
Hot Issues
Our Advent calendar for 2019
Tax Office sounds warning on 8 types of super schemes
Don’t forget sharing economy income
Impress your friends with your knowledge!!
Salary sacrificing and the superannuation guarantee
Why so much super “stuff” this year?
Reverse Mortgage?
How the gig economy could create hidden tax issues for contractors and employers
15,000 tip-offs as ATO black economy hotline rings hot
What happens when interest rates hit the floor?
Director Penalty Notices (DPN)
Synchronised global economic slowdown
STP to be increasingly monitored
6 new accounting related videos
GDP by country since 1800
Information needed to be the BBQ expert.
Employee or independent contractor: What happens when it goes wrong?
Single Touch Payroll (STP) reporting irregularities: ATO contacting businesses
Employee entitlements, ‘wage theft’ and Fair Work: Why it’s time to be proactive
How's Australia really doing - the real figures?
Pension deeming rates cut from 1 July 2019
Audit warning sounded as ATO clamps down on dodgy claims
New ATO data-matching program – overseas movement data and HELP debt
ATO black economy strike force heads to Brisbane
Access to more resources and tools than most websites.
Tax Return Mistakes
SMSF advice appetite strong, says ASIC
Taxpayers confused by Scott Morrison’s $1,080 tax refund
Common STP set-up mistakes - ATO
Proposal to hold directors liable for GST set to pierce corporate veil
September 2019 - vital statistics for Australia
Tax Commissioner wants to turn black economy to ‘lighter shade of grey’
Articles archive
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 2 April - June 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 April - June 2005
Quarter 2 April - June 2004
Quarter 1 January - March 2004
Quarter 4 October - December 2003
Quarter 3 July - September 2003
Quarter 4 October - December 2001
Quarter 3 of 2014
Articles
Taxing times for self-managed super funds
Definition of dependant 'evolving'
What are Reportable Employer Superannuation Contributions?
Self-managed Super Funds
Recent court case has 'implications' for SMSFs
3 tax time checklists
Extra Tax on Superannuation Contribution - Last Year
New penalty regime prompts ATO review
Recent court case has 'implications' for SMSFs

 

The outcome of a recent court case offers a “timely reminder” to SMSFs that own units in related trusts, according to AMP SMSF’s Peter Burgess.


Speaking to SMSF Adviser, Mr Burgess noted the Pope v FC of T case involved a family trust that owed some distributions to a taxpayer, but the trust was unable to pay the distributions.



       


 


The taxpayer wrote off the amount that was owed, Mr Burgess said, and then tried to claim the amount written off as a tax deduction.


The deduction was denied because the tax department said it was a loan rather than an unpaid present entitlement.


“This was not an SMSF case … but I think it’s a timely reminder to SMSFs that own units in related trusts. They need to ensure the SMSF is receiving distributions owed to the SMSF in a timely manner,” Mr Burgess said.


The definition of "loan" in the SIS Act is “very broad” and includes any form of financial accommodation.


“So it’s open to the ATO commissioner, where there are unpaid distribution for an extended period of time, to call that a loan,” Mr Burgess said.


This has implications for SMSFs that may invest in related trusts which comply with regulation 13.22C, with one of the requirements of those trusts being they cannot have any borrowings, he said.


“So this would result in those units being classified as the in-house assets of the SMSF, which can lead to breach situations and a $10,200 admin penalty under the new penalty regime,” Mr Burgess said.


“The other issue here is once the related trust has breached the requirement of SIS regulation 13.22C, it can never be a 13.22C trust again, meaning the trust would need to be unwound,” he added.


Written by Katarina Taurian
Monday, 11 August 2014
smsfadviseronline.com.au




21st-August-2014
        
89 Boronia Road Boronia Vic 3155 Phone: (03) 9762 5400 Fax: (03) 9761 1327