Tax Articles

Contents Who is a working holiday maker? Working holiday maker taxable income Australian resident WHMs from NDA countries Getting started as a working holiday maker End of the income year or completion of work in australia Claiming a departing australia superannuation...

Contents Who is a temporary resident? Exemptions for foreign source income Non assessable non exempt income CGT for temporary residents Controlled foreign companies Temporary residents in non resident trust estates Interest paid by temporary residents FBT concessions...

Contents If you are a resident If you are a non-resident How income is taxed if you are under 18 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...

Contents Transfer pricing rules Transfer pricing benefit in cross-border transactions Key terms in transfer pricing regulations Determining arm’s length conditions Cross-border test Transfer pricing benefit and permanent establishments Transfer pricing penalties and...

Contents What is a permanent establishment? What are associated enterprises? Exemptions from permanent establishment Modifications by mli (multilateral convention) Activities of closely related enterprises Activities of agents Control between companies Application...

Contents What is thin capitalisation? How thin capitalisation works Entities affected by thin capitalisation rules Entities exempt from thin capitalisation rules Application of thin capitalisation rules Thin capitalisation rules for ADIs Thin capitalisation rules for...

Contents What is double taxation? The role of international tax agreements in addressing double taxation Why do double tax agreements exist? What are the steps leading to a DTA? Capital gains tax Business profits and permanent establishment Legal effect of double tax...

Contents Dividend withholding tax – basic concepts Exemptions from dividend withholding tax Dividend withholding tax – other issues Directing dividends away from foreign residents Dividend withholding tax – basic conceptsDividend withholding tax is a final tax imposed...

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...

Contents Interest withholding tax conditions What is interest? Interest withholding tax rates Various financial transactions Exemptions from interest withholding tax Collection of interest withholding tax Credit for withheld interest tax Tax file number and investment...

Contents Royalty withholding tax scenarios What are royalties? Types of australian payers Taxation of intellectual property, copyright, and lease agreements Withholding obligations beyond actual payments Withholding tax for resident businesses with overseas branches...

The source of income for tax purposesThe term "source" of income in Australian taxation can refer to both the geographic origin and the transaction or means by which income was generated. This definition forms the basis for tax liability determination. Income doesn’t...

Contents What is a controlled foreign company? CFC residency rules Scope of CFC rules Attributable taxpayers Attribution of CFC income The active income test Attributable income calculation   The Controlled Foreign Company (CFC) provisions form part of the...

Contents What is value shifting? Applicability of the value shifting rules Exclusions from the value shifting rules Division 725 Division 723 Indirect value shifting rules Consolidated groups What is value shifting? Value shifting is when the value of one asset...

Contents Website expenses Domain name expenses Software expenses Depreciation Depreciation options for small business entities Website expensesMany businesses and other taxpayers regularly incur expenditure to acquire, develop, maintain or modify a commercial website....

A prepaid expense describes a payment made in advance of the benefit of a service or receipt of something. The potential advantage of a prepaid expense is the opportunity for a taxpayer to bring forward the recognition of a deduction into a sooner income year and...

Contents How is trading stock taxed? Valuation of trading stock Trading stock that stops being held as trading stock Trading stock that is disposed or sold outside of a business Division 70 of the ITAA 1997 outlines the tax treatment of trading stock. Section 70-10...

Contents How a FTE works Reasons for making a family trust election Eligibility – the family control test What does ‘control’ mean? The family group Effect of death on a family trust and a family group Applying a FTE retrospectively Revoking a FTE Varying a FTE...

Contents Background The four objective tests and the $250,000 limit  The ATO’S discretion Examples of the ATO’S discretion BackgroundDivision 35 of the Income Tax Assessment Act 1997 (ITAA 1997) contains provisions that prevent individual taxpayers who carry on a...