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Hot Issues
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ATO issues warning after ‘unprecedented’ spike in impersonation scams
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Crypto transactions in ATO sights with new data-matching program
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Government to establish $2 billion fund for small business lending
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Small business corporate tax rates Bill is now law
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ATO to double rental deduction audits to 4,500
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ATO set to issue excess super contribution determinations
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How's Australia going as we approach the election?
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Single Touch Payroll (STP) is compulsory for all small businesses.
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Federal Budget 2019 - Overview
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How the 2019 Federal Budget affects you
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FBT Reminder – Odometer Reading
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‘Big awareness push’ underway as STP deadline approaches
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GST collection on overseas goods at 300% of forecasts
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The problem with getting to 53 years of age.
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Lost Beneficiaries
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New quarterly STP reporting method for closely held payees revealed
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Some Australian figures to help on Budget night.
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Employers hit with rolling SG audits as ATO toughens stance
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Resources to help understand and implement Single Touch Payroll (STP)
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Big fines, prison on the cards as new SG penalties introduced
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Extra website resources and tools is one way we offer you and your family more.
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FBT Exemption for Various Work Vehicles
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Tax payable on expenditure recoupments
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ATO identifies SMSF contravention red flags
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Who wins dispute about taxable income?
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Australia - facts & figures March 2019
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Strategies to handle scam phone calls and problem e-mails.
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Instant asset write-off threshold upped to $25k
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Jail time for GST fraud
Article archive
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Quarter 4 October - December 2014
Who wins dispute about taxable income?

The Administrative Appeals Tribunal (AAT) has affirmed the ATO’s decision, based on the taxpayers modest income when compared with a high volume of money passing through various accounts.

         

 

The taxpayer was employed as a beauty technician.

Her pay varied every week to reflect her working hours and she was always paid in cash without receiving pay slips.

While the Commissioners’ analysis of bank accounts, records of international money transfers and casino data suggested the applicant spent 44% in one year and 73% in another year more than the declared income.

In cases like this, the Commissioner is effectively making an informed guess as to the taxpayers income.

Provided there is a rational basis for the estate, the Commissioners assessment will stand, unless the taxpayer is able to:

  • demonstrate the assessment was excessive; and
  • establish what the correct (or more nearly) correct figure is.

In examples like this, the Commissioner nearly always wins.

 

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