What Is The Tax Office Up To?

  • With the total number of trusts growing in Australia, the Tax Office has expressed concern about their use. With an additional $217m for a Trust Task Force, Trust users can be assured the ATO will be investigating Trusts used to conceal income, mischaracterise transactions, artificially reduce trust income or underpay tax. The Tax Office has stated ‘the blurring of distinctions between business and personal income and expenses is a common issue attracting our attention’. High income individuals using trust or company structures will be under close scrutiny. Ensure you have documentation to support funds paid from various entities to shareholders and beneficiaries.
  • This is the first full year on the new contractor reporting requirements for the building and construction industry. This data will be used to review what contractors are reporting to identify under reporting.

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IMPORTANT DISCLAIMER:This newsletter is issued as a guide to clients and for their private information. This newsletter does not constitute advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.