TRAINING TOPICS
The topics are listed in alphabetical order.
All seminars run for one hour unless specified otherwise.
ASPECTS OF FINANCING BUSINESS ACTIVITIES
- Interest deductions
- Borrowing costs
- Mortgage discharge expenses
- Hire purchase
- Plant and equipment lease
- Commercial bills
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AUDITS AND PENALTIES
- The Commissioner’s powers of access – sections 263 and 264
- ATO’s Guidelines on access
- Informal access
- What penalties can the ATO impose
- The reasonable care test
- The reasonably arguable test
- Remission of tax shortfall penalties
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CALCULATING TAXABLE INCOME OF A SMALL BUSINESS
– STS
– Prepayments
– Non-commercial losses
– Debt/equity rules
– Division 7A
– CGT concessions
– PSI rules
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CGT BASICS
- Overview
- CGT events
- Procedure to follow
- Working out the net capital gain or loss
- CGT discount
- General exemptions
- Cost base
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CGT AND THE MAIN RESIDENCE
- Introduction
- Moving into a dwelling
- Changing main residences
- Absences
- Building, repairing or renovating a building
- Death of owner
- Destruction of building
- Using the dwelling for income-producing purposes
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CGT SMALL BUSINESS CONCESSIONS
- The four available concessions
- Order of exemptions
- How to qualify for the small business concessions
- The 15 year exemption
- The 50% active asset exemption
- Small business retirement concession
- Small business rollover
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CONCESSIONS FOR PRIMARY PRODUCERS
- Special rules re income and deductions
- Uniform capital allowance concessions
- The benefit of income averaging
- PAYG concessions
- STS concessions
- Non-commercial loss concessions
- Farm management deposits scheme
- GST concessions
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FBT DEVELOPMENTS AND SALARY PACKAGING
- What is Salary Packaging
- Impact of FBT on salary packaging
- Benefits to put in an effective salary package
- Exempt fringe benefits
- Concessional fringe benefits
- Meal entertainment fringe benefits
- Expense payment fringe benefits
- Car fringe benefits
- FBT and GST
- Employers with concessional treatment
- Fringe benefits reported on group certificate
- FBT developments
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GETTING GIFT DEDUCTIBLE STATUS
The requirements:
- Fall within a general category set out in the income tax law
- Be in Australia
- Be endorsed by the ATO
- Apply for DGR endorsement
- Have an ABN; and
- Maintain a gift fund
- Issue appropriate receipts; and
- Self-review
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GETTING MONEY OUT OF A COMPANY
- Repayment of loans
- Share buybacks
- Retirement payments
- Liquidations; and
- Demergers
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GST BASICS
- Taxable supplies
- GST free supplies
- Input taxed supplies
- Creditable acquisitions
- Cash v accruals
- Monthly v quarterly
- Tax invoices
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GST ON SALE OF A BUSINESS
- Introduction
- Sell the individual assets of the business
- Sell the business as a going concern
- Sell the interest in the entity that holds the business
- Sale of farm businesses
- Some issues re selling a franchise
- GST timing issues
- Cessation of registration
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INCOME TAX AND GST ISSUES ON ACQUIRING AND DISPOSING OF ASSETS (2 hours)
– Calculation and timing of capital gains and losses
– 12 month holding rule for CGT 50% discount
– Small business CGT concessions
– Division 43 clawback
– GST calculation and timing
– Depreciation balancing charges
– STS rules re acquisition and disposal of assets
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INDIVIDUAL’S TAXABLE INCOME
- Travel and travel allowances
- Home office expenses
- Non-commercial losses
- Averaging
- Rebates
- Negative gearing
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INTRODUCTION TO THE TAXATION SYSTEM (1 –3 hours)
- Two Income Tax Assessment Acts
- Assessable income
- Allowable deductions
- Tax returns
- Overview of different types of entities
- Individuals and Sole traders
- Partnerships
- Trusts
- Companies
- Depreciation
- Overview of GST
- Overview of CGT
- Overview of FBT
- Overview of PAYG Withholding
- Overview of PAYG Instalments
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ISSUES CONCERNING THE DEDUCTIBILITY OF INTEREST
- When is interest deductible – the use and purpose tests
- Borrowings by partnerships, companies and trusts following the Roberts and Smith case
- Borrowings where the business has ceased or the asset has been sold
- The deductibility of interest incurred prior to income being earned
- Line of credit and redraw facilities.
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ISSUES AFFECTING PRIVATE COMPANIES
- Interest expenditure and deductibility and the consequences of the Roberts and Smith case for private companies
- Carried forward losses
- Investment income and the holding of assets
- Payments, loans, and forgiveness of loans – Division 7A
- Salaries and directors fees – section 109
- Liquidators distributions
- Debt/equity rules
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LEGISLATIVE PROCESSES
- Legislation – Bills and Regulations
- Rulings – public and private
- Objections – timing and structure
- Appeals – timing and process
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LOANS – TAX ASPECTS
- What is a loan
- At call loans to private companies
- Division 7A – Subdivision EA
- Limited recourse loans
- Deductibility of interest
- Line of credit and redraw facilities
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MONTHLY TAX AND GST UPDATES
Latest topical Tax and GST developments including:
- Legislation
- Cases
- Announcements; and
- Rulings and Determinations
Presented according to topics.
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NON-COMMERCIAL LOSSES
- Tests for operation of the rules
- Carrying on a business
- Assessable income test
- Real property test
- Other assets test
- Profits test
- Special circumstances
- Primary producers
- Artists
- Application of Division 35
- Application of the Division 35 tests to partnerships
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PART IVA – THE CURRENT POSITION
- The elements of Part IVA
- Has a scheme been entered into?
- Has a tax benefit been obtained?
- Was there a sole or dominant purpose of obtaining a tax benefit?
- What happens when Part IVA applies
- Special stripping of company profits rules
- Franking credit schemes
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PAYG WITHHOLDING AND PAYG INSTALMENTS
- Withholding events
- Rates of withholding
- Registration of PAYG withholders
- Payer reporting obligations
- Methods for calculating and paying PAYG instalments
- Special rules
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PERSONAL SERVICES INCOME RULES
- What is personal services income
- What is a personal services business
- The deductions allowed and disallowed under the PSI regime
- The attribution of income under the PSI regime
- PAYG withholding
- Part IVA
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PRIVATE COMPANIES - DIVISION 7A
- Consequences of Division 7A applying
- Overview of Division 7A
- Application of Division 7A
- Payments, loans and debt forgiveness that are not treated as dividends
- Amalgamated loans
- Payments and loans through interposed entities
- Sections 109XA-XC
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SERVICE ENTITIES
- What is a service entity?
- Why do people set up service entities?
- Can Part IVA apply to the establishment of service entities?
- What is the ATO’s position on service entities
- What can be included in the service agreement and how much can it be marked up?
- What is necessary to withstand ATO scrutiny?
- Administration companies
- Practice companies
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SIMPLIFIED IMPUTATION SYSTEM AND THE DIVIDEND STREAMING RULES
- Franking a distribution
- Restrictions re franking
- The maximum franking credit rule
- The benchmark rule
- Franking period
- What information must a corporate tax entity give to its members when it makes a franked distribution and when?
- Form of the distribution statement
- Recording on tax paid basis
- Franking deficit tax
- Single gross-up and credit rule
- Rewritten anti-streaming rules
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SIMPLIFIED TAX SYSTEM
- Introduction to the STS
- Joining the STS
- Participation in the STS
- Accounting for income and deductions under the STS
- Treatment of depreciating assets
- Treatment of trading stock
- Treatment of prepayments
- Advantages and disadvantages of joining the STS
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TAX ASPECTS OF BUYING AND SELLING A BUSINESS
- Purchase the shares or the business
- Allocating value to the assets
- The availability of any CGT concessions
- Timing of the capital gain
- GST issues
- Selling individual assets
- Selling as a going concern
- Selling the interest in the entity that holds the business
- GST timing issues
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TAX ASPECTS OF USE OF MOTOR VEHICLES
- Deductible travel
- Claiming motor vehicle expenses
- Novated leases
- Hire purchase
- Lease of a motor vehicle
- Luxury cars
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TAXATION OF COMPANIES
- Write-off of establishment costs
- GST and Pre-establishment costs of a company
- Issue of shares
- Determining taxable income of a company
- Payment of company tax
- Carryforward of company losses
- Capital gains and losses
- Research and development concessions
- Imputation system
- Debt/Equity rules
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TAXATION OF EXPATRIATES AND INPATRIATES
- Residence
- Source
- Expatriates who remain residents of Australia
- Expatriates who assume non-resident status
- Inpatriates who become residents of Australia
- Inpatriates who remain non-residents
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TAXATION OF INVESTMENTS
- Shares
- The imputation system explained
- Income tax and GST consequences of buying and selling shares
- Rental properties
- Capital gains tax issues
- Depreciation claims
- Division 43 and clawback on sale
- GST issues
- Negative gearing explained
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TAXATION OF PARTNERSHIPS
- What is a partnership
- Partnerships v Joint Ventures
- Determining the net income/loss of a partnership
- Determining the partner’s shares of the partnership net income/loss
- Dividends received by a partnership
- PAYG instalment income of a partner
- Partnerships and GST
- Partnerships and CGT
- Change in trading stock
- Change in ownership of depreciable assets
- Small business CGT concessions and partnerships
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TAXATION OF TRUSTS
- General rules
- Appointor
- Where net income and trust income are not the same
- Treatment of tax preferred income on distribution
- CGT event E4
- Use of trusts
- Family trust election
- Getting a tax “deduction” for donations to churches and sporting clubs etc
- Special hybrid trusts
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THE TRUST LOSS RULES AND FAMILY TRUSTS
- Definitions of the Different Types of Trusts
- Tests for Deductibility of Losses
- Family trusts
- Interposed entity elections
- Family trust distributions tax
- The income injection test
- The Pattern of Distributions Test
- Other tests to limit deductibility of losses
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TAX EFFECTIVE DIVORCE
- Transfer of capital assets with and without rollover relief
- Transfer of depreciable assets with and without rollover relief
- Transfer of trading stock
- Transfer of shares or units
- Transfer of assets out of family companies and trusts
- Beware Division 7A
- GST on transfers
- Maintenance payments.
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TRAVEL AND TRAVEL ALLOWANCES, ENTERTAINMENT, AND HOME OFFICE EXPENSES
- The tax treatment of different types of travelling expenses
- The treatment of travel allowances
- Entertainment expenses
- Home office expenses
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UNIFORM CAPITAL ALLOWANCE REGIME
- Core provisions
- Rules re holding a depreciating asset
- Rules re effective life
- Rules re cost of an asset
- Balancing adjustments
- Pooling
- Deductions for certain blackhole expenditures
- Plant costing $300 or less
- Interaction with CGT
- Provisions for primary producers
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YEAR END PLANNING
- Introduction
- Reducing assessable income
- Trading Stock
- Capital gains
- Division 7A
- Fringe benefits tax
- Increasing allowable deductions
- Bad debts
- Depreciation and capital write-offs
- Simplified Tax System
- Losses
- Interest deductions
- Debt forgiveness
- Increasing rebates and credits
- Franking credits
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