Now and then, taxpayers may find themselves in a situation where they simply have no records to back up a tax claim. There can be many reasons for this, such as losing documents when moving home (either paper or electronic), or technology failures that end up with the same result (or at worst even destroy...

There is a taxation ruling (in draft form at the moment) that spells out when a rental or commercial property owner may be able to claim a deduction relating to expenditure incurred by activities undertaken to deal with pollution issues and other environmental protection purposes. The ruling, TR 2019/D3, does not define “pollution”, which therefore...

The ATO has plans in place that it can put into operation to relieve certain employers from reporting all the fringe benefits they provide to staff. The measure however is only triggered where it can be shown that employees’ personal safety is at risk or under threat. Note that the term “security concerns” in relation...

It can sometimes be the case that spouses can have different main residences at the same time. When this occurs, special CGT rules apply to in effect provide only one CGT main residence exemption over this period. However, important decisions and choices may need to be made to optimise the tax outcome in this case...

How transfer pricing actually works – and why it’s abused Multinational tax avoidance is proving to be a sore point for Australians. You’ve heard about the big players – Facebook, Google, Apple – and there is speculation they might be engaging in dodgy transfer pricing practices. What is transfer pricing? When two companies that are...

Barbecue stopper: Weird taxes If the tax system seems unfathomable sometimes, keep in mind that throughout human history there has been a plethora of “strange” rules and regulations in regards to tax that citizens of various jurisdictions, and time periods, have had to cope with. The hipster haters Henry 8th, who had a beard, is...

The ATO is reminding rental property owners that each year it sees some fairly common mistakes being made with tax claims, and the outcomes that result, in regard to investment properties. It has therefore released a list of the top 10 stumbles, and how best to avoid them. Apportioning expenses and income for co-owned properties...

Inheriting a home or a legal interest in one could be the largest windfall gain that many Australians ever experience. From a tax law perspective, when someone dies a capital gain or loss does not apply when a property passes: to the deceased person’s beneficiary to the deceased person’s executor or other legal personal representative...

If a child is under the age of 18, and they earn income on their savings account, remember that the ATO considers that the person who “owns” the interest depends on who uses the funds of that account (no matter what type of account it is or the name of the account holder). You need...

The ATO seems to be always looking over the shoulder of property developers to make sure they are complying with their tax obligations. The considerations facing the ATO are many and varied, but can include topics such as whether an agreement to develop and sell land is a “mere realisation” or a disposal either in...