knp Colouring for the Leukaemia Foundation

knp Directors and staff will be showing off a new colour on Thursday, 11 March, in support of the Leukaemia Foundation's World's Greatest Shave.

If you wish to support their efforts please logon & donate:

World's Greatest Shave - knp Solutions Team

Stay tuned for our April edition to see all the crazy colours.




A Word From knp's Tax Manager

TR 2009/D8 ARTICLE

 

 

On 16 December 2009, the ATO released a draft Taxation Ruling (“TR 2009/D8”) which contains the Commissioner’s view on the circumstances in which a private company with an unpaid present entitlement (“UPE”) to an amount from an associated trust, where the funds representing the UPE remain intermingled with funds of the trust, may be taken to have made a loan to that trust within the provisions of Division 7A.

 

Background

It is not uncommon in many family structures to have a company as a beneficiary of a trust and the trust makes the company beneficiary presently entitled to the income, but the money stays within the trust for generally commercial purposes – creating a UPE.

 

The draft Ruling considers whether such a UPE can be taken to be a loan made by the private company to that trust within the meaning of Division 7A, in which case, unless a complying Division 7A loan agreement is put in place, the trust will be deemed to have received a dividend under Division 7A.

 

The Commissioner’s view

The Commissioner’s now argues that the definition of “loan” in Division 7A is very wide and includes the provision of ‘financial accommodation’.

 

knp Newsdesk

R & D Tax Offset Abuse

The Tax Office has issued a Taxpayer Alert warning taxpayers to be cautious of investment schemes that abuse the research and development (R&D) tax offset.

Deductions and Refinancing Home Loans

The Tax Office has also issued a Taxpayer Alert in which it alerts taxpayers about sham arrangements being promoted as ‘mortgage management plans’.

Uncommercial Offshore Superannuation Trusts

The Tax Office has also issued a Taxpayer Alert warning taxpayers that it is closely scrutinising offshore trust structures that masquerade as superannuation funds used by taxpayers in an attempt to avoid tax on money that is shifted into Australia.

Superannuation Funds and Illegal Early Release

New steps to prevent the rollover of funds to self-managed superannuation funds (SMSFs) created for the purpose of illegal early release of benefits have been implemented by the Tax Office.

Excess Contributions Tax: Commissioner's Discretion

The Tax Office has provided guidance on whether or not the Commissioner will exercise his discretion to disregard excess non-concessional contributions.

Payment from Transition-to-retirement Pensions

The Tax Office has also stated its view on whether a member of an SMSF with a transition-to-retirement account-based pension, where the entire balance of the pension is preserved money, can make an election such that a payment from the pension is taxed as a superannuation lump sum rather than a superannuation income stream benefit.

No Deduction for Misappropriated Money

In a recent case, the Full Federal Court dismissed a taxpayer's appeal against the denial of his claimed deduction of $2.3 million for money misappropriated by his investment manager.

FBT Audit and Compliance Activities

With the 2009/10 FBT year drawing to a close, it is important to note the FBT audit and compliance activities currently
being undertaken by the Tax Office.

GST: Decreasing Adjustment Note Threshold Increased

The Government will increase the decreasing adjustment note threshold for the purposes of GST.

With effect from 1 July 2010, the threshold is $75 or less.

Goods Taken for Private Use

 


Further Articles of Interest

:: knp Solutions
:: ASX
:: All Ordinaries
:: Dow Jones
:: The Australian
:: The NY Times
:: London Times
:: Financial Review
:: The Age
:: BRW
:: ATO
:: ASIC
:: CNN
:: ABC
:: knp November 2009 Newsletter
:: knp February 2010 Newsletter


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knp Classifieds

Classifieds:

Sharpie’s Charity Challenge 2010

In its 6th year this annual event takes another turn. In late 2009 with the help of Arnold Bloch Leibler and KNP solutions Sharpie’s Charity Challenge organised itself into an official Foundation called “The Sharpie’s Charity Challenge Foundation” (SCCF) and attained deductable gift recipient status from the Australian Taxation Office.

Since its first event in 2005 the SCCF’s founder, Josh Sharp, has raised over $35,000 for community charities including Jewish Care, the Leukaemia Foundation and The Alfred hospital to name a few. The funds raised during the 2009 event were used to purchase an ECG unit for Ward 5 of the Alfred Hospital in Melbourne.

On Saturday March the 20th 2010 Josh and his co participants (about 20 people) will hike to the summit of Australia’s tallest mountain, Mount Kosciuszko, TWICE in one day. That will be a total of almost 35km. He is hoping to better his efforts of last year where $9,500 was raised.

To make your donation follow the link to Sharpies Charity Challenge

Or email Josh Sharp your enquiry.

If you wish to submit your classified in the April edition please email sdunn@knp.com.au by Monday, 29 March 2010.