Business Links Australia Pty. Ltd. is a CPA Practice
CPA Australia Logo
Liability limited by a scheme approved under Professional Standards Legislation
Hot Issues
spacer
Access to more resources and tools than most websites.
spacer
Tax Return Mistakes
spacer
SMSF advice appetite strong, says ASIC
spacer
Taxpayers confused by Scott Morrison’s $1,080 tax refund
spacer
Common STP set-up mistakes - ATO
spacer
Proposal to hold directors liable for GST set to pierce corporate veil
spacer
September 2019 - vital statistics for Australia
spacer
Tax Commissioner wants to turn black economy to ‘lighter shade of grey’
spacer
Changes to the Private Health Insurance Statement
spacer
Up to 9 in 10 ‘other’ expenses adjusted as ATO reveals dodgy claims
spacer
Downsizer Super Contribution
spacer
Tax payers to receive beefed up tax returns.
spacer
10 top global corporations since 1998
spacer
Catch-up Contributions
spacer
Life Insurance
spacer
Community tip-offs trigger ATO visits
spacer
Australia at a glance
spacer
2019: Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
spacer
Small business clients need to be ready for STP by 30 September
spacer
Big four firm outlines new financial year checklist for SMSFs
spacer
Alert - Online Share Accommodation
spacer
ATO flashes warning over $7.2bn car expenses claims
spacer
Vital statistics for our great nation.
spacer
3 out of 4 tax dob-ins are about business
spacer
Tax on compensation received for inappropriate advice
spacer
‘Extra care’ crucial in avoiding ATO spotlight this tax time
spacer
ATO clears up FAQs about Single Touch Payroll
spacer
GST reporting: common errors and how to correct them
spacer
LRBAs, guarantees in need of review after property market falls
spacer
Victorian Property Valuation Cycle
Article archive
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 4 of, 2015 archive
spacer
FBT – Christmas Parties and Taxi Fares
spacer
Merry Christmas for 2015 and Happy New Year.
spacer
Common errors in claiming deductions for super contributions
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
Collectables Require Action Now
spacer
Why the ATO’s new powers make SMSF compliance more important than ever
spacer
Self Managed Superannuation Funds – Is it for Retirement?
spacer
ATO warns against misusing partnerships
spacer
The Scammers Shame
spacer
ATO offers SMSF 'unwinding' for aggressive tax arrangements
spacer
Salary and Wages PAYG Shortfall
spacer
SuperStream
spacer
Australian Taxation Office (ATO) Telephone Scammers – BEWARE!
spacer
Navigating the BDBN minefield
spacer
SMSFs warned on emerging LRBA issue
spacer
Short Access to Term Deposits
spacer
Retirees taking super in lump sum is a ‘myth'
ATO warns against misusing partnerships

The tax office has issued a warning to taxpayers and their advisers against misusing partnerships with private company partners to avoid tax.

             

In a statement, the ATO said it is reviewing arrangements through which a purported partnership with a private company partner is used to enable individuals to access business profits without paying top-up income tax at their marginal rates of tax.

Deputy commissioner Michael Cranston said, “We’re seeing contrived arrangements where business profits are claimed to be diverted to a partnership and as much as 99 per cent of profits are allocated to the private company and taxed at the 30 per cent tax rate.

“The company typically doesn’t control or benefit from the profits. Rather, the money is loaned or paid to individuals who do not include the amounts in their assessable income avoiding ‘top-up’ income tax on what they receive,” he added.

According to the ATO, the profits are usually channelled to the partnership via a discretionary trust or through dividends from a private company, such as under a ‘dividend access share’ arrangement. The partnership may also derive income from carrying on a business.

“We are currently reviewing a number of cases that involve the arrangement and will continue engaging with taxpayers over the coming months,” Mr Cranston said. "We’re finalising our view and consider that the arrangement may be ineffective at law.

“We encourage taxpayers who think they may be involved in such arrangements to contact us to make a voluntary disclosure or seek a private ruling,” Mr Cranston said.

“Affected taxpayers may also want to consider seeking independent advice from an adviser not involved with the arrangement.”

 

Staff Reporter
Friday, 13 November 2015
accountantsdaily.com.au