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Hot Issues
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Access to more resources and tools than most websites.
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Tax Return Mistakes
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SMSF advice appetite strong, says ASIC
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Taxpayers confused by Scott Morrison’s $1,080 tax refund
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Common STP set-up mistakes - ATO
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Proposal to hold directors liable for GST set to pierce corporate veil
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September 2019 - vital statistics for Australia
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Tax Commissioner wants to turn black economy to ‘lighter shade of grey’
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Changes to the Private Health Insurance Statement
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Up to 9 in 10 ‘other’ expenses adjusted as ATO reveals dodgy claims
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Downsizer Super Contribution
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Tax payers to receive beefed up tax returns.
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10 top global corporations since 1998
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Catch-up Contributions
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Life Insurance
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Community tip-offs trigger ATO visits
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Australia at a glance
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2019: Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
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Small business clients need to be ready for STP by 30 September
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Big four firm outlines new financial year checklist for SMSFs
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Alert - Online Share Accommodation
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ATO flashes warning over $7.2bn car expenses claims
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Vital statistics for our great nation.
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3 out of 4 tax dob-ins are about business
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Tax on compensation received for inappropriate advice
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‘Extra care’ crucial in avoiding ATO spotlight this tax time
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ATO clears up FAQs about Single Touch Payroll
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GST reporting: common errors and how to correct them
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LRBAs, guarantees in need of review after property market falls
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Victorian Property Valuation Cycle
Article archive
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Quarter 2 April - June 2019
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Quarter 1 January - March 2019
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Quarter 4 October - December 2018
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Quarter 3 July - September 2018
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Quarter 2 April - June 2018
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Quarter 1 January - March 2018
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Quarter 4 October - December 2017
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Quarter 3 July - September 2017
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Quarter 2 April - June 2017
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Quarter 1 January - March 2017
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Quarter 4 October - December 2016
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Quarter 3 July - September 2016
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Quarter 2 April - June 2016
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Quarter 1 January - March 2016
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Quarter 4 October - December 2015
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Quarter 3 July - September 2015
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Quarter 2 April - June 2015
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Quarter 1 January - March 2015
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Quarter 4 October - December 2014
Quarter 1 of, 2015 archive
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ATO states estimates are acceptable
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Hockey considers super access for first time home buyers
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Reportable Fringe Benefit Amount - Employer Reporting
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Simple Mistake on Share Transfer
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ATO highlights billions in forgotten super
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In a bankruptcy what does a trustee do?
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Bankruptcies, what are they?
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SMSF trustees unprepared for new collectibles rules
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We wish all our clients a Merry Christmas, a Happy New Year and a restful holiday
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Employee Christmas Parties and Gifts – Any FBT?
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Breaking down the latest ATO determination on TRIS
Simple Mistake on Share Transfer

 

A taxpayer who thought he was making a simple and standard family transaction was caught for Capital Gains Tax.

       

A taxpayer, who owned some public company shares, asked the share registry to register the shares in joint names (with the spouse).  The change became obvious to the tax office when the dividends decreased the following year and the taxpayer tried to justify the transfer on the basis that the spouse really owned them jointly from the beginning.

Unfortunately, there was no real substance to the proposition and no hard evidence.  Accordingly, there was a disposal for Capital Gains Tax purposes and a small profit on the increase between the cost and the market value at the time of the transfer.

The taxpayer may have had a motive of saving tax by splitting future dividends, but made a basic mistake by not asking the tax adviser.

The safest assumption to make is that all transfers (of shares/property) need to be declared for Capital Gains tax purposes.

The next step is to calculate if there is a profit or loss and finally whether there may be exemptions (e.g. main residence, small business concessions).