Small business litigation funding: improvements recommended
A recent Inspector-General of Taxation and Taxation Ombudsman (IGTO) has recommended improvements to the small business litigation funding program. The report by the IGTO was mainly based on 2 completed dispute investigations, with a further 3 investigations currently underway. The original intention of the funding program was to mitigate the disadvantage that small business taxpayers …
Financial Stability Review – October 2023
The Financial Stability Review provides the Bank’s assessment of the current condition of the financial system and potential risks to financial stability. It is issued half-yearly. Source: https://www.rba.gov.au/publications/fsr/2023/oct/
Aggregated turnover: Commissioner discretion
The ATO has recently released a Taxation Determination to provide guidance on two specific issues of control in relation to the aggregated turnover test and when the Commissioner of Taxation can exercise discretion. The aggregated turnover threshold for being a small business entity was originally less than $2m; however, that threshold was increased to less …
Compliance actions available to the ATO: SMSFs
The ATO has been ramping up compliance activity in response to an increasing number of SMSFs which have been identified as not complying with superannuation obligations. A quick refresher for trustees on how the ATO deals with SMSF non-compliance and the range of compliance action available to the ATO may assist trustees to act proactively …
ATO shifting to firmer debt collection
The Commissioner has flagged a return to firmer debt collection actions after seeing a trend of profitable businesses that have the capacity to pay their tax debts but are actively choosing not to. It warns business taxpayers not to treat ATO liabilities like a free loan, and reiterates that businesses are only temporary custodians of …
AirAsia Partnership Success
After an extended hiatus, it was an absolute joy to step back into REDQ! ✈️ A big shoutout to the dedicated finance and legal team at AirAsia for their warm reception and enlightening us on the airline’s visionary growth plans for the future. We have been standing shoulder to shoulder with the AirAsia Group as …
Small business bonus deduction: technology investment
Small businesses may be able to get a bonus 20% deduction for any business expenses and depreciating assets used improve their digital operations. This includes digital enabling items such as computer software and hardware, digital media and marketing, e-commerce related goods or services, and systems or monitoring services related to cyber security. The bonus deduction …
ATO SMSF focus areas for 2023
In a recent speech, Justin Micale, ATO Assistant Commissioner of Self Managed Super Funds Risk and Strategy area outlined the risks on ATO’s radar in the SMSF space and provided some insights on approaches the ATO is using to address those risks. While most of these are returning favourites such as identity fraud, investment scams …
ATO alert: diverting profits to SMSFs
The ATO has issued an alert, warning taxpayers against entering arrangements where special purpose vehicles (SPVs) are used to divert profits of property development projects to SMSFs. Specifically, it is reviewing arrangements where one or more SMSFs have or acquire direct or indirect ownership of SPVs that undertake a property development project and due to …