Current news from our news service

Hot Issues
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Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
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Year-end tax planning
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Home Office & end of 2021 tax year
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ATO extends STP finalisation due date
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Super transfer balance cap increase from 1 July 2021
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ATO extends Division 7A COVID-19 relief
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Tax implications - more than one job
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Tax mix to rely more heavily on income tax as the Treasurer ducks austerity
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10% Super Guarantee from 1st July 2021
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End of year financial strategies
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Closely held payees: STP options for small employers
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Videos to help understand accounting topics.
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ATO Small Business Newsroom - May / June
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New insolvency rules commence
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ATO sheds light on crypto compliance focus
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Post Federal budget reflections
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Federal Budget 2021 - Overview
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Building a more secure and resilient Australia
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Federal Budget 2021 - Health
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ATO signals crackdown on 4 ineligible work-from-home claims
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Taxpayers urged to keep work-from-home records
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Businesses feeling ‘adverse’ impacts of COVID-safe measures: ABS
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New insolvency rules commence
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ATO promises not to ‘destroy’ businesses as it resumes debt collection
Article archive
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Quarter 2 April - June 2021
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Quarter 4 October - December 2018
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Quarter 4 October - December 2017
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Quarter 4 October - December 2016
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Quarter 1 January - March 2016
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Quarter 4 October - December 2015
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Quarter 3 July - September 2015
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Quarter 2 April - June 2015
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Quarter 1 January - March 2015
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Quarter 4 October - December 2014
Quarter 1 of, 2015 archive
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ATO states estimates are acceptable
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Hockey considers super access for first time home buyers
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Reportable Fringe Benefit Amount - Employer Reporting
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Simple Mistake on Share Transfer
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ATO highlights billions in forgotten super
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In a bankruptcy what does a trustee do?
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Bankruptcies, what are they?
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SMSF trustees unprepared for new collectibles rules
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We wish all our clients a Merry Christmas, a Happy New Year and a restful holiday
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Employee Christmas Parties and Gifts – Any FBT?
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Breaking down the latest ATO determination on TRIS
Simple Mistake on Share Transfer

 

A taxpayer who thought he was making a simple and standard family transaction was caught for Capital Gains Tax.

       

A taxpayer, who owned some public company shares, asked the share registry to register the shares in joint names (with the spouse).  The change became obvious to the tax office when the dividends decreased the following year and the taxpayer tried to justify the transfer on the basis that the spouse really owned them jointly from the beginning.

Unfortunately, there was no real substance to the proposition and no hard evidence.  Accordingly, there was a disposal for Capital Gains Tax purposes and a small profit on the increase between the cost and the market value at the time of the transfer.

The taxpayer may have had a motive of saving tax by splitting future dividends, but made a basic mistake by not asking the tax adviser.

The safest assumption to make is that all transfers (of shares/property) need to be declared for Capital Gains tax purposes.

The next step is to calculate if there is a profit or loss and finally whether there may be exemptions (e.g. main residence, small business concessions).

 

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