Articles

ATO: Tax debt: Garnishee Orders

The ATO may issue a garnishee order if you fail to meet your tax debt payment obligations.  However you must be left with reasonable living expenses.  What are reasonable living expenses will be determined by the type of garnishee that has been issued. There are…
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Section 23AG – Exempt foreign service income

Under section 23AG of the Income Tax Assessment Act 1936 (ITAA) Foreign employment income is exempt from tax if all of the following applies: you are an Australian resident you are engaged in continuous foreign service as an employee for 91 days or more your foreign service is…
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CGT main residence exemption

  If you sell your home you are entitled to a CGT exemption known as the main residence exemption.  There are some restrictions on when you can claim the main residence exemption – one of these is where you for rent out your property while…
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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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