Articles

International tax: CFC tax rules explained

If you have interests in offshore companies you should be aware of the taxation rules relating to Controlled Foreign Companies (CFC) or Controlled Foreign Trusts Rules (CFT). 1.If an offshore entity is a CFC or CFT has an an Australian resident “controller”, the tainted income…
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Aussie crew member of overseas yacht? Australian resident for tax purposes?

A question that frequently arises is whether an Australian who is living and working on a yacht based in overseas waters is a non-resident and thus not liable to be taxed on wages received while working on the yacht.  Many yachties crewing overseas may consider…
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Are you an Australian working overseas? Your residency status will affect your liability to tax on foreign earned income

A recent case in the AAT concerned an individual working in Oman, who successfully claimed to be a non-resident of Australia, despite being domiciled in Australia (essentially Australian nationality).  The taxpayer therefore was not liable to pay tax on the foreign earned income. The case…
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Tax Lawyer Crime: Failure to Lodge Tax Returns

Did you know that the ATO can prosecute you for failing to lodge a tax return and, even worse, if you are convicted, you will have a criminal conviction. The first warning sign is the Tax Office issuing a Notice to Lodge outstanding tax returns. …
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Tax Fraud: can lead to prison

Tax fraud or evasion is treated very seriously by the courts.  There are close to 100 serious criminal tax offence matters currently before the courts for taxation offences including: Income tax fraud Using false invoices to claim deductions, GST refund fraud, excise fraud (alcohol and…
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SMSFs: Getting ready for audit

SMSF Audit requirements Each year your SMSF must be audited by an approved SMSF auditor before the SMSF Annual Return can be lodged. Before your auditor can form an opinion on the fund’s compliance and financials, they will need relevant supporting documents and information. It’s…
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Tax: employee or contractor?

It is critical you correctly classify a worker as either an ‘employee’ or a ‘contractor’.   If your worker is in fact an employee there are significant taxation and superannuation consequences.    So it is important to get it right. The essential difference is that employees work…
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SMSF: co-trustee not acting properly? Take action immediately

Superannuation legislation does not deal with the situation of one trustee behaving improperly in relation to their SMSF obligations and the other trustee complying. The complying trustee may seek court approval to remove the trustee who was responsible for the illegal early access.    This is…
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