Tax Articles

What is an Employee Share Scheme?An employee share scheme (ESS) is a scheme under which shares, stapled securities or rights to acquire such shares or securities in a company (known as ESS interests) are provided to an employee, a person in an employee like...

What is Intellectual Property?Intellectual property IP encompasses a range of intangible assets and rights held by a taxpayer. This includes rights held by a taxpayer as the owner or licensor of patents, registered designs, copyrights and so forth. The definition of...

The distribution of profits made by professional firms to the controllers of a business and their associates may present tax complications. Professional firms here refers to professional practices such as accounting firms, architectural firms, engineering firms,...

What is a Testamentary Trust?A testamentary trust is essentially a trust that is established through a person's last will and testament. Unlike discretionary or family trusts, which are typically created separately during an individual's lifetime through a trust deed,...

What is a hire purchase agreement?A hire purchase agreement commonly refers to a contractual arrangement whereby a person or entity (the lessee) acquires from another person or entity (the lessor), the right to use an asset and a subsequent right or obligation to...

A trust is a legal relationship established through a trust deed, involving two essential parties: a trustee and beneficiaries. Within this framework, the trustee is entrusted with the responsibility of managing and legally owning the assets placed within the trust....

What is a Family Trust?A family trust, also known as a discretionary trust in Australia, is a legal arrangement designed to manage and hold the wealth and assets of a family or serve as a structure for family businesses. It operates on the principles of trusts, where...

Compensation PayoutsThere are many forms of compensation payouts which may be awarded to taxpayers. This can include compensation in relation to personal injury or illness, damage to reputation, damage to property, lost employment, lost opportunity, or loss of income...

If your business is a company that owns 100% of another company, trust or partnership, tax consolidation is an option you should consider. A consolidated group generally consists of a head company and subsidiary members. Throughout consolidation, subsidiary members...

Who is a Working Holiday Maker?To be considered a working holiday maker (WHM) in Australia, a person must hold one of two specific visa subclasses: 417 Working Holiday Visa 462 Work and Holiday (Backpackers) Visa Verification of one's visa status can be done through...

In Australia, there are specific tax rules that apply to individuals classified as temporary residents. These rules govern how income earned by temporary residents, particularly income from sources outside Australia, is taxed.Who is a Temporary Resident?Temporary...

Tax payable on income you receive, if you're under 18 years old and not an excepted person with excepted income.How tax applies if you're under 18 years old Special rules apply and you pay tax on certain income types at a higher rate on income you receive if you're...

Transfer pricing includes the pricing of goods, services, or intangible assets exchanged between different entities. It involves determining the prices for these transactions, taking into account the possibility that the relationship between the involved entities...

What is a Permanent Establishment?A permanent establishment is a fixed place of business where an enterprise (a company) conducts its business activities. This place can be a building, office, factory, workshop, mine, oil/gas well, quarry, agricultural land, or...

What is Thin Capitalisation?Thin capitalisation is a financial practice involving the funding of subsidiaries with a higher proportion of debt relative to equity than is typical in an arm's length financial arrangement. This practice is often employed for tax related...

What is Double Taxation?Double taxation is a situation in which a taxpayer is subjected to similar tax obligations by two different countries for the same income, during the same timeframe, and related to the same subject matter. This problem arises from the fact that...

Dividend withholding tax is a final tax imposed on dividends paid by resident companies in Australia to non-resident individuals or entities. This tax is applied regardless of whether the dividends are considered ordinary income for tax purposes, unless specific...

Tax deductions for losses and outgoings that relate to holding vacant land on which there is not substantial and permanent structures in use or available for use has been denied since 1 July 2019. However, confusion around the application of the provision and...

Conditions For Interest Withholding TaxWithholding tax must be paid on interest income under certain conditions: If the interest is earned by someone who is not a resident for tax purposes. If the interest is paid by either: A resident, except when the interest is...