Vecenlia WANG CPA

Key tax-related changes in the Australian Federal Budget 2024–25 http://spr.ly/6046dJ6Ds The discontinuation of a proposed measure to deny deductions for certain payments relating to intangibles is among several taxation updates in Australia’s federal budget, as summarised by senior tax practitioners from DLA Piper Australia #internationaltaxreview #tax #taxpolicy #internationaltax #australiatax #dlapiper

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The TPB has released draft guidance on the new breach reporting (‘dob-in’) obligations for registered tax practitioners, effective 1 July 2024. Broadly, these new obligations require registered tax practitioners to notify the: • TPB if they have reasonable grounds to believe that they have significantly breached the Code of Professional Conduct (‘the Code’); or • TPB and the relevant Recognised Professional Association (‘RPA’) if they have reasonable grounds to believe another registered tax practitioner has significantly breached the Code. TPB(I) D53/2024 seeks to clarify the scope and process of breach reporting and includes several illustrative case studies for practical understanding. These new registered tax practitioner obligations and this latest TPB guidance will be just some of the critical issues discussed in the NTAA’s upcoming 2024 Tax Schools seminars. You can secure your seat for the NTAA’s 2024 Tax Schools in the link below.

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Key ATO Tax Compliance Focus Areas for 2024 As we head into 2024 tax time , the Australian Taxation Office (ATO) has outlined several critical areas for tax compliance. Businesses and individuals must pay attention to these focus areas to ensure accurate and timely tax filings: Work-Related Expenses: The ATO is closely examining claims for work-related expenses, especially those related to working from home. Accurate record-keeping is essential to substantiate these claims. Rental Property Deductions: Many property owners make errors in reporting rental income and expenses. The ATO is focusing on ensuring that deductions for repairs and maintenance are accurate. Undeclared Income: Reporting all sources of income, including from the sharing economy, is crucial. The ATO is vigilant about identifying undeclared income to prevent tax evasion. Superannuation Guarantee: Ensuring employers meet their superannuation obligations is a priority. This includes timely and accurate reporting to ensure employees receive their correct entitlements. Fraud and Evasion Prevention: The ATO is enhancing efforts to detect and prevent tax fraud and evasion using advanced data analytics and technology. Debt Collection: There is a strong emphasis on recovering high-value and aged debts. The ATO is implementing targeted strategies to encourage timely payment and prevent new debts from accumulating. Staying informed and compliant with these focus areas will help businesses and individuals avoid potential issues with their tax filings. #TaxTime2024 #ATOCompliance #WorkFromHome #RentalProperty #Superannuation #TaxEvasion #DebtCollection #Accounting #SmallBusiness #taxtips

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Amounts received that don’t count as assessable are classified by the ATO into three different categories: exempt income; non-assessable non-exempt income; and other amounts that are not taxable. Our article takes a look at all 3 categories. https://loom.ly/eTPiU_Y

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Earlier this year the Administrative Appeals Tribunal issued its decision in Lance’s Case. The decision highlights the importance of GST fundamentals, and that a taxpayer requires sufficient supporting evidence to discharge it’s onus of proof when challenging tax matters.  https://lnkd.in/ghsQRiRF #gst #AAT #fundamentals #taxpayer #taxconsulting #taxadvisory #evidence #tax

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Section 100A is designed to cap tax avoidance within the operation of trust taxation.  To give us a clear guideline on acceptable behaviour, the ATO has colour-coded the different levels of risk associated with various tax planning strategies involving trust distributions into green and red zones.  Some examples of activity that are likely to be red flags for further investigation are: 🔴 Is the action taken only being done for a tax advantage?  🔴 If the beneficiary returns trust income to the Trust as assessable income.  🔴 If the beneficiary entitlements set off against subscription for units in Trust.  For more examples and what falls into the green zone, check out this blog: https://hubs.la/Q02Cmh730 - #accountingservices #accounting #accountantsandaccounting #taxplanning

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Queensland Treasury has released new audit committee guidelines, with implementation continuing until July 2025.      As part of this release, Treasury introduced transitional requirements for entities to reach fully independent membership of audit committees.   These changes can help make committees more transparent, remove the perception of any bias, and expand experience beyond the entity.      Read this blog by Senior Director, Melissa Fletcher for our advice on how the guidelines impact and benefit our clients: https://lnkd.in/geK2EaiV #Insights #QAO #Blog #AuditCommitees #Governance

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The ATO is intensifying its FBT audits, achieving high success rates by focusing on data matching. With a $1.3 billion FBT tax gap, employers are advised to keep meticulous records, especially for novated leases, to avoid discrepancies. Increased scrutiny targets potential double-dipping in motor vehicle expense claims. #TaxAudit #FBT #Accounting #TaxCompliance #DataMatching #ATO #BusinessFinance For more details, read the full article: https://lnkd.in/earrsbUP Don't find yourself unprepared when the ATO comes knocking! Audit Shield is the tax audit insurance solution for accounting firms and their clients. Audit Shield: ✅ Covers the professional fees (subject to certain policy exclusions and limits) normally charged to your client when you assist them to respond to eligible official audits, inquiries, investigations, reviews or examinations of lodged returns or financial compliance obligations. ✅ Avoids disputes with your clients regarding fees incurred as a result of audit, and possible fee write offs as a result. ✅ Fees are paid promptly direct to you. ✅ No excess payment. ✅ A proactive, cost effective solution for your clients. ✅ Audits of previously lodged returns (for an audit instigated during the period of cover) are also covered, including those you did not lodge or prepare. ✅ No cost to you to offer the service to your clients. ✅ Indicates to your clients that you are proactive and are looking out for them. Join the ranks of thousands of accounting firms who trust Audit Shield to protect their clients and their firm. Stay proactive, stay protected!

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📄 Submission: Amendments to the Thin capitalisation rules – Australian Taxation Office’s (ATO) Public Advice and Guidance Consultation Recently, we made a submission to the ATO regarding amendments to the Thin capitalisation rules. We commend the ATO on its proactiveness in preparing Public Advice and Guidance for the implementation of the new thin capitalisation rules. We are of the view that guidance on a range of issues associated with the new rules is crucial in assisting taxpayers and their advisors in complying with their obligations. The provision of such guidance by the ATO will provide certainty to taxpayers and help ensure compliance with the intended effect of these fundamental changes to the Australian tax treatment of interest and equivalent costs. You can read the full submission below, but we've outlined here that we're of the view that comprehensive guidance needs to be issued as soon as practicable dealing with the: ⚫ Proposed debt deduction creation rule (DDCR), by way of a comprehensive law companion ruling (LCR) coupled with a practical compliance guide (PCG), including risk assessment frameworks ⚫ Impact of the transfer pricing rules as to the quantum of debt, by way of a PCG, coupled with revisions to existing PCGs and/or the issue of a new PCG including risk assessment frameworks ⚫ Commissioner’s intended approach towards, and management of, transitional and compliance issues arising from the rules, including its approach to the application of Part IVA to restructures etc, by way of a PCG, including risk assessment frameworks ⚫ Guidance to address ambiguity in the revised ‘financial entity’ definition Comprehensive guidance is also recommended in relation to the operation of the fixed ratio test (FRT), group ratio test (GRT), and third-party debt test (TPDT), as well as a range of specific issues. #TheTaxInstitute #TTI #tax #thehomeoftax #jointhetaxconversation #TaxPolicyandAdvocacy #submission #thincap #ThinCapitalisation

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ATO: Trust distributions done right - Getting the “basics right for your clients” to avoid “unexpected outcomes” The ATO has provided guidance to assist advisors of trust clients in preparing for year-end distributions. Risk mitigating considerations highlighted by the ATO include reviewing trust deeds and amendments, ensuring streaming provisions are adequate and supporting clients in notifying beneficiaries of their entitlements. As noted by the ATO, “Getting these basics right for your clients will help them avoid any unexpected outcomes.” Enter Trust Evolve™ - Acis’ comprehensive solution combining specialist trust deed review and amendment by our expert legal team with practical tools and strategies to deliver trust distributions with confidence. When was the last time you completed a review of your client’s trust deeds? Acis is here to help: 1. Learn more about Trust Evolve™ 👉 https://bit.ly/3QvEUd1 2. Secure Acis' Exceptional Trust Evolve™ Offer 👉 https://bit.ly/4bmdX41 Read the full article here 👉 : https://bit.ly/4bjyLsw #Acis #TrustDeeds #RiskMitigation #Accounting #FinancialAdvisory #ATO

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Taxpayers across the board should prepare to become more familiar with the Tax Office and have real-time interactions as a result of its $2.1 billion funding boost from the budget. BDO tax partner Mark Molesworth said the ATO would use the funding to go after taxpayers more efficiently, with budget papers projecting $4.8 billion in receipts over the next five years. Read the full article here: https://bit.ly/3K9TCTt #RealTimeScrutiny #Taxpayers #TaxRegulations

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🔍📊 Our claims department is dedicated to processing Audit Shield claims from accounting firms across New Zealand. We've conducted an analysis of claims documented between 1 April 2023, and 31 March 2024. 📆 Explore the key highlights of Inland Revenue audit claim trends during this period in our latest article. 🔍 Dive into the details and uncover the trends! 📚 Read the article now: https://lnkd.in/gc57gusy 💼 Here's how Audit Shield benefits your accounting firm and clients: 🛡️ Covers the professional fees (subject to certain policy exclusions and limits) normally charged to your client when you assist them in responding to eligible official audits, inquiries, investigations, reviews, or examinations of lodged returns or financial compliance obligations. 🤝 Avoid disputes with your clients regarding fees incurred as a result of an audit, and possible fee write-offs as a result. 💸 Fees are paid promptly directly to you. 🚫 No excess payment. 💡 A proactive, cost-effective solution for your clients. 🔄 Audits of previously filed returns (for an audit instigated during the period of cover) are also covered, including those you did not file or prepare. 🆓 No cost to you to offer the service to your clients. 👁️ Indicates to your clients that you are proactive and looking out for them. 🌐✨ Join thousands of accounting firms who choose Audit Shield. #AuditShield #AccountingFirms #NewZealand #ClaimsAnalysis #InlandRevenue #TaxClaims #ClaimProcessing #Taxation #BusinessInsights #FinancialData #RevenueAnalysis #TaxationTrends #Accountancy #NZBusiness #TaxManagement #FinancialCompliance #TaxAudits #ProfessionalServices #FinancialNews #TaxSeason #ClaimAnalysis #AccountingIndustry #TaxExperts

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In a recent joint submission with the Tax Practitioners Board, CPA Australia, Chartered Accountants Australia and New Zealand, and other leading professional bodies, we have called for an urgent review of the current timeframe for reporting significant breaches of the Code of Professional Conduct. Read the full story from AccountantsDaily here: https://ow.ly/Vq3r50S9ayx

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Yesterday's Federal Budget provides funds to ensure "the ATO continues to be well-resourced to pursue key tax avoidance risks,"* ❗ proving that it's more important than ever for Accountants to be up to date with FBT information and educate their clients on this.🎓 👉Make sure you're across what matters in FBT in 2024 - check out the alert areas here: https://hubs.la/Q02x9v6W0 - #accountantsandaccounting #accountingservice #federalbudget #fbt * https://hubs.la/Q02x9v9r0

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The Australian government recently unveiled draft amendments on public country-by-country tax transparency, reflecting feedback since 23 April 2023. 🌐💼 These amendments, still in draft stage, aim to align reporting regulations with international standards and better serve stakeholders. Key amendments include: · Effective Date: Postponed to 1 July 2024. · Disclosure Content: Streamlined to adhere more closely to OECD standards. · Income Threshold: Only applicable when Australian-sourced annual income exceeds AUD 10 million. · Consolidated Reporting: Limited to Australia and 41 specific jurisdictions, with allowances for consolidated reporting elsewhere. While pending legislation, it's crucial for multinational enterprises to understand potential implications. Stay informed for smoother compliance in a changing regulatory landscape. #taxtransparency #legislationupdates #globalbusiness #compliance #taxation #internationalstandards #australia #corporategovernance #financialreporting #taxreforms #multinationalenterprises #businessinsights

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The Institute of Public Accountants, Chartered Accountants Australia and New Zealand, CPA Australia, and SMSF Association are concerned about the rising personal risks associated with issuing accountants' certificates and are advocating the removal of these certificates from the wholesale investor tests. Read the AccountantsDaily article here: https://ow.ly/TkaC50RRYt4

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The Australian Taxation Office (ATO) has provided guidance on the deductibility of Financial Advice Fees. The draft determination highlights deductions under Section 8-1 for income-related expenses and Section 25-5 for tax management. It emphasises evidence requirements and apportionment for mixed-purpose expenses. Understanding these guidelines is essential for taxpayers, though personalised advice from tax professionals is recommended. Our article summarises this draft determination and provides examples that illustrate its purpose. Read more below... #ATO #TaxGuidance #FinancialAdvice #TaxDeductions #Accounting #TaxProfessionals

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