Business tax questions topics

Invoice in another language

lapple0128 — Thu, 27 Feb 2020 09:59:09 GMT

Hi Everyone
I am a sole trader and not registered for GST. I recently purchased some goods from overseas and the invoices I received were not in English. Just checking if invoices in another language are acceptable to the tax office?
Thanks a lot!

MYGOVID system error UNK000001

LS1 — Thu, 27 Feb 2020 04:28:44 GMT

Like many others, I am having trouble setting up the MYGOVID app.

I have tried EVERYTHING suggested (numerous times) to get it running.

I have uninstalled and reinstalled the app. I have cleared the cache and data. I have checked the dates and languages. I have double checked that the data I am entering is correct. I an STILL getting the UNK000001 error.

I have a Levono tab7 (Android 7)

Please help!!!

Newzealand dividends paid to Aust Trusts

Derek — Thu, 27 Feb 2020 02:48:13 GMT

Hi, I hold shares in Auckland Airport (ASX: AIA), within a family trust. I'm unable to find on the ATO website how to report my NZ dividends, what supplementry forms to use (if any), and what I need to show, not show or claim. An example of the dividend is (in A$)

Security, rate, shares,declared Div, Supplementary div, withhold tax, imputation credit, gross taxable Div, net payment

Full Ord , 0.10, 750, $79.08 , $13.69 , $13.69 , $16.79 , $93.04 , $ 79.08

For each item above where do I show it on the Trust Tax Form, what do I leave out and what can or can't I claim.

Much Appreciated

Tax deductions

Bush66 — Thu, 27 Feb 2020 01:56:45 GMT

Can a psychologist who works from home claim Gym Hire Equipment as a 'self care' deduction?

Exempt Scholorships

Lozza18 — Wed, 26 Feb 2020 21:48:53 GMT

Hello,

For a scholarship to be tax exempt to the recipient, I understand the following:

To be eligible for tax exemption, a scholarship, must be open to a wide range of candidates.

Scholarships are exempt from PAYG withholding and personal income tax where payment is:

made to a student receiving full time education, that is, undertaking a full-time course
not received ‘on the condition’ that they become, or continue to be, an employee
principally for educational purposes
does not have any requirement attached that amounts to the student having to render services.

My question is, does the scholarship have to come from a school, college or university or can any entity give a sponsorship that can be exempt to the recipient? What are the criteria for the entity giving the scholarship for it to be exempt to the tax payer?

Thanks

Small Business Capital Gains Tax Concessions - Passive assets - Business conducted by affiliate or c

Bannisterjbb — Wed, 26 Feb 2020 10:14:36 GMT

Hi,

To satisfy the basic conditions for SBCGT Concessions the asset must be an active asset.

The asset which is to be sold is owned by a company which does not carry on a business.

The asset is used exclusively in a business conducted by a discretionary trust which has a turnover of more than $2 million.

The 2 shareholders in the company control the trust and have received all distributions from the trust equally.

Net asset value of all connected entites and affiliates does not exceed $6 million.

Section 152.10 (1A) provides that if the taxpayer (the company) does not carry on a business the basic conditions are satisfied if an affiliate or connected entity of the company is a CGT small business entity.

Does this mean that because the trust is not a small business entity that the samll business CGT concession cannot be claimed even though the net assets or all connected entites and affiliates do not exceed $6 million?

GST Being Charged in USD

heleneanne65 — Wed, 26 Feb 2020 08:26:23 GMT

Hi guys! I am part of an MLM that is relatively new in this country and everything is charged in USD including the GST, Is this ok? How does an Australian tax get charged to us in USD? Thanks guys!

Meals & Entertainment

Aphrodite — Wed, 26 Feb 2020 06:24:00 GMT

After reading information on different scenarios as follows, i am still unsure what the transactions should look like. While i feel confident in determining that these are not an FBT situation, I am still unsure as to whether GST can be claimed and allocated as a business expense.

1. Meetings with clients - food & drink paid for, (sometimes including alcohol)

2. Business owner goes on the road for business related activity, accompanied by her partner with food, drink & accommodation involved

Clarification is much appreciated on this.

Overseas Hosting Companies charging GST on USD amounts

daniel_rossi — Tue, 25 Feb 2020 14:16:29 GMT

I don't believe this has been thought through properly and needs investigation. I believe Ebay are also doing it. Overseas Cloud hosting companies are forced to charge GST. But months later I discovered they are skimping extra off the top by charging GST off the USD bill not the converted AUD amount. It's paid via Paypal so paypal could convert and add the GST. But they are doing it on their side as the subscription amount.

Not only are the USD bills becoming expensive due to the trashed dollar, I am being charged extra a month on top. When if you convert the amount to AUD then add 10%, the bill should be much less.

They get more when the dollar dives further.

What they are doing is criminal and illegal and need help trying to find answers. I complained but they are going to keep doing it.

Amazon Cloud charge in AUD therefore the GST is correct. It's my VPS hosting place, Vultr.

Is transferring money from business bank account to personal bank account taxable?

Opel135 — Tue, 25 Feb 2020 13:51:25 GMT

Hi,

If I run a business as a company with me as a Director where I do not pay myself an income (I already have a permanent fulltime job), am I allowed to use the income from the company for personal expenses?

Would transferring that money from my business bank account to my personal bank account be deemed as personal income, even if I've paid business tax?

Are deductions allowable for fraud?

PeaceLilly — Tue, 25 Feb 2020 08:01:53 GMT

Hi ATO community,

I am finishing up my company's tax return and just have one question before I submit it.

I sent a somewhat small sum via bank transfer to be credited to an investment trading account to a U.K. limited company. This money was meant to be segregated from their operational expenses. Unfortunately, before the money arrived at them, their website went down and I was unable to contact them and I have been unable to retrieve the money back. The company the money was sent to is still registered and is solvent. I have reported this to Action Fraud U.K. (police) but still haven't received a response.

Would I be able to claim this amount as a deduction under theft or potentially an investment loss?

Thank you for your time and answers.

mygov and RAM

Russellcorp — Tue, 25 Feb 2020 05:14:40 GMT

I am concerned with the removal of the auskey and the introduction of the use of your personal mygov account for business use. I work for a Liquidator and I do not want my clients linked to my mygov account. How does the RAM work? Is this the best thing for me to do. Does that work similarly to the auskey?

Work Related Injury - Working Director not covered by Workers Comp

TOMACCOUNT — Tue, 25 Feb 2020 03:29:12 GMT

I am looking for some further information about income tax/GST deductions on medical expenses incurred by a company. The situation was related to a single director company that does not have workers compensation insurance. The injury was sustained by the director who is a working director and performs all the work for this company (it is quite a physical role) and this injury occured during his normal work day. At this stage he doesn't take a wage and there are also no other employees within the business.

In WA it is optional to cover a working director for workers compensation so could these injury related expenses be deductible/ GST creditable (if applicable) to the company? Or does this become a personal expense of the director? Can you point me in the right direction to do some further research on this?

Family Member lead money to help business

JessicaSpring — Tue, 25 Feb 2020 02:25:06 GMT

Hello, my parents will borrow their personal saving with no interest to help me out with my business cash flow issue. I will return the money in a month time. may I know if there is any tax implication by doing this?

MyGov verification text

DChew — Mon, 24 Feb 2020 19:33:18 GMT

Good morning all. I woke up at 6am and checked my mobile phone. I received an myGov Security verification text (msg ref: SV001) at 4.50am while I was asleep. I did not request for any access code. Does this mean that someone is trying to access my ATO account? Would someone able to advice me on what to do next,,, change the password? Much appreciated, Cheers, D.

Business tax

Addy — Mon, 24 Feb 2020 13:38:19 GMT

Does ATO offer free tax help for people who run a business? I am currently selling skin care and just wanted to know if I can access help to do my own tax returns thank you

Tax Deduction for removal of Horticultural Plants

JE_72 — Mon, 24 Feb 2020 07:20:54 GMT

I have planted grapevines as an agricultural producer. As part of plantng the new vines I have removed some old olive trees to make way for new vine planting

What I need to know is how to claim a deduction for the removal of the old olive trees. Is the removal considered a capital deduction or immediate write off in its own right,or do I add the cost of the removal to the capital cost of the new vines and depreciate as part of the new vines?

GST - electronic distribution platform operators

LG123 — Mon, 24 Feb 2020 05:54:25 GMT

Does online sales facilitator need to charge GST on second hand personal goods sourced by other individual/business (the actual vendor) and then resale through the facilitator's online platform? The sales facilitaor will charge a commission including GST to the vendor, but should the faciliatator also charge GST on the goods itself on the resale and then pass it on to the vendor?

Thanks.

NDIS for plan managers

melindasullivan — Sun, 23 Feb 2020 21:08:30 GMT

I am a Plan Manager for NDIS which means I manage the budgets of clients. When the client receives a service I claim the money (invoice) from NDIS and then forward it to the provider. Most sevices do not have GST applied but in the event that they do, do Ineed to account for GST or do I not need to because I am simply claiming the funds thay are entitled too and then passing them on.

I am not paying for services and then being reimbursed, just to be clear.

I use a seperate bank account specifically for client funds to go in and out of.

Starting a new business

Bumpy — Sun, 23 Feb 2020 00:37:48 GMT

I’m thinking of kicking off a new business soon. My question is, if I register for an ABN and register the business, but NOT operating or trading right away, what needs to be done as far as tax???? Do I still need to lodge business statements etc???

Australia Director

ProfitSee — Fri, 21 Feb 2020 18:22:53 GMT

We are a small software company and conducting internaltional business. Our Australia director left us unexpectly when we decide to liquidate our AU subsidiairy. Our Australia accountants told us we needed to find an Australia resident to templorarliy take on public officer role to able to lodge our final income return. However, we are winding up our AU business and have no employees in Australia that can represent us. So we wonder if the ATO can consider waiving the public officer requirement and allow 2 US directors to sign the final pre-liquidation tax return instead?

Thank you in advance for your answer,

Discretionary Trading Trust

Hedayat — Fri, 21 Feb 2020 09:59:19 GMT

My question is about beneficiaries of a trading trust who also work for the trust. In general, trust distributions don't attract super guarantee contribution requirements and the tax liability is upon the beneficiaries when they receive the distribution at the end of the year. Does the above scenario apply to a trading trust with beneficiaries working for the trust? and with drawings paid throughout the year to beneficiaries would be offset against the share of profit at the end of the financial year?

Directors Loan

Joe2019 — Fri, 21 Feb 2020 02:08:26 GMT

My friend puts private expenses (house rent etc) through his private company's books and then repays the company in the following month. At any given time, the account will have a debit balance. Is this considered a director's loan? [I am helping my friend with his taxes this year. In the previous year, the person helping him did not report the debit balance as a director's loan, and to the best of my friend's knowledge, he has not signed a formal loan agreement with the company]. Thank you

Register bank details?

Drumma81 — Thu, 20 Feb 2020 05:40:07 GMT

Buyers Identity

Rishi1706 — Thu, 20 Feb 2020 04:02:10 GMT

Buyers Identity - On a valid tax invoice do we need to have buyers address? or buyers name is enough?

There is no clear answer on Identity

Client dinner's

MBannister — Thu, 20 Feb 2020 01:21:53 GMT

Hi,

I am just after information regarding if taking clients out to dinner as a thank you for referrals can be claimed as tax deduction. I am trying to determine if this falls under entertainment and would not be deducatible.

Am i able to claim everything as an expenses or only the clients portion and not my own meal?

Thank you

GST and/or FBT on retirement gift to employee

TCarrington — Thu, 20 Feb 2020 00:11:05 GMT

Retirement gift to former employee over $9k including GST. We have paid for gift using company funds.

Can we claim GST on gift?

Do we need to pay FBT for retirement gift to employee?

Are retirement gifts considered as ETP?

What are the implications to the company for ETP

How does GST work on STRIPE fees and STRIPE Taxes

Kavitha — Wed, 19 Feb 2020 16:04:57 GMT

Dear team,

I want to know how GST works on STRIPE fees and STRIPE taxes.

Eg:

I have $ 83 received to my bank account from sales where there is a Stripe fee of $2.46 and a Stripe tax of $0.25 applicable to it.

Further, I have sales inside australia and outside australia as well. Hence please let me know how the above figures work with GST;

1.when it comes to Australian sales and

2.when it comes to Non Australian sales

Highly appreciate your prompt response.

Thank you.

Is Reimbursement of Cancelled Holiday Cost Taxable Income for an ABN?

cedric42 — Wed, 19 Feb 2020 11:49:22 GMT

Please advise on the following scenario where:

* Ltd company A (major company) has subcontracted the services of Pty Ltd B (SME with multiple employees, registered for GST and subject to payroll tax)

* Pty Ltd B has subcontracted the services of Pty Ltd C (registered for GST, does not pay payroll tax)

* Pty Ltd C has a single Employee D.

* Employee D pays tax at top marginal tax rate of 45%.

* Employee D has prepaid a holiday valued at $5000.

* Ltd A has requested that Employee D cancel their holiday and will pay for reimbursement of all costs.

* Pty Ltd C will have recover Employee D holiday cancellation costs of $5000 from Pty Ltd B as Pty Ltd C is not a supplier to Ltd A.

* Pty Ltd B will have recover cancellation costs of $5000 from Ltd A.

Assuming that

1. Pty Ltd C invoices Pty Ltd B for $5000 reimbursement

2. Pty Ltd B invoices Ltd A for $5000 reimbursement

3. Ltd A pays Pty Ltd B $5000.

4. Pty Ltd B pays Pty Ltd C $5000.

5. Pty Ltd C pays Employee D $5000.

My questions are:

i) Will Pty Ltd C income of $5000 be treated as Taxable? If so, in order for Employee D not to be out of pocket - should Pty Ltd C invoice Pty Ltd B for $9434 + GST? (i.e 5000/0.53 as Employee D is on the top marginal rate of 45% and subject to 2% medicare levy?)

ii) Can Employee D of Pty Ltd C claim the cancelled holiday as a business expense?

iii) Should Pty Ltd C add GST to invoice to Pty Ltd B?

iv) Should Pty Ltd B add GST to invoice to Ltd A?

v) Should Pty Ltd B (that pays payroll tax) include the reimbursed costs paid by Pty Ltd C to Employee D in its payroll tax calculations?

vi) Are the reimbursed costs of cancelled vacation paid by Pty Ltd C to Employee D subject to FBT?

Thank you in advance

Reimbursing a vendor for work completed.

Naomi_J — Tue, 18 Feb 2020 23:35:33 GMT

Hi -

I work for an organisation. One our our clients damaged a residence of the Non-Govt Organisation they were staying at. The NGO paid a contractor to fix the damage, the contractor invoiced the NGO and charged GST which they paid. They have invoiced us for the amount the contractor invoiced them plus GST so the contractors invoice was $774.00 ($70.36 GST) and the NGO's invoice is $851.40 ($77.40 GST). This doesn't seem right - should they be charging GST on top of an amount that already had GST charged?

Thanks

GST

laurap08 — Tue, 18 Feb 2020 03:42:17 GMT

Hi All,

Hoping someone can assit with my question below:

I have a subcontractor that is regisered for GST, however does not include GST amounts on the invoices that he sends to me (note services are not GST exempt).

When asked why the subcontrator does not collect GST, the response was beacuse "they wont meet the threshold".

Is this going to lead to reporting issues for me? If you are registered for GST you need to collect the GST irrevalent of the threshold? Or do you not start collecting it until after the threshold is reached?

Thanks.

Double Tax Agreement - Withholding Tax - Sale of Business to Malaysian Company

BradPh — Tue, 18 Feb 2020 03:41:44 GMT

I have a client who is selling his business to a Malaysian Company. The sale will be a CGT free due to 15 yr exemption. However, the buyer is saying th purchase is subject to 10% withholding tax on the purchase as intelletual property is considered a 'royalty' and thus subject to withholding. Does anyone know how to access an exemption here considering the sale is a tax free capital gain?

Incorrect Buyer Details on Invoice over $1000

MBAChristine — Tue, 18 Feb 2020 02:44:42 GMT

Hi,

A client has received an invoice for over $1,000 which isn't made out to them directly, however states their name in a reference field. (The invoice is made out to another non-related entity).

I'm under the understanding that the supplier needs to supply a valid tax invoice addressed to their entity directly to be able to claim the GST. Can you please confirm? I have been unable to find anything specific to this situation in my research which I can demostrate to my client.

Thanks in advance for your assistance in this matter.

i would like to lodge my GST online

Abdullah123 — Mon, 17 Feb 2020 10:27:32 GMT

Hi everyone,

i would like to lodge my bussiniss GST online please help i can do it.

thand all

Partnership distribution

GippyCath — Mon, 17 Feb 2020 09:05:33 GMT

Are partnerships required to distribute their profit? Can profit not be distributed, and kept in the business? Our business is young and I'd like to hang on to the surplus for business purposes, not distribute it to the partners. Is that allowed? Otherwise we have to start at square one each financial year.

Business building employee residence

Alluc123 — Mon, 17 Feb 2020 03:21:29 GMT

Hello

I work for an NTER company.

We are currently building a residence at one of our rural locations to house an employee.

We are not in the business of building residential or commercial properties.

Can we claim the GST on the decommissioning of the old residence and the building of the new residence.

The residence will only have an employee resdie there and will never be commercially rented out.

Thank you

Alluc

ABN Sole Trader - how to invoice, tax obligations, GST, super

Iphis — Mon, 17 Feb 2020 02:46:02 GMT

Hi there,

New to Australia, on a bridging visa pending Partner Visa (Subclass 820) so have full work rights and believe this makes me a resident for tax purposes. All help much appreciated!

I've been offered some freelance/casual work with a couple of different companies, but one of the companies wants me to register an ABN and invoice them, so am trying to figure out:

a). How to invoice them - is there a standard format? What information needs to be included on an invoice to make it 'official'?

b). If I am invoicing one company in this way, would it make more sense for me to invoice all companies in the same way and process all my casual work through my ABN? Would this help simplify my tax return/help me avoid overpaying tax (pretty sure I won't earn beyond the non-taxable threshold this year, but may in future)?

c). Do I need to include GST and if so, how does this work? If I make less than $75,000 is it in my interests to register for GST, and how is this paid (i.e. do I need to pay it out of the amount I earn, or do I add it to the amount I charge the client?)

d). If I process all my work through an ABN, am I right in thinking that I then have to make my own super contributions? Is this a legal requirement, and is there a minimum amount that I have to put aside for super? Is it possible to charge employers for super contributions on top of my hourly rate, and if so what is the standard rate to charge?

Many thanks for your help.

Held Refund

Shane87 — Mon, 17 Feb 2020 01:07:32 GMT

Recently had a refund held due to a few Activity Statements Overdue. So early last week i completed those as NIL as i never traded. Once they were to be completed the refund would be released but no update on myGov and i dont have the time to hold to ring ATO. Just wondering if anyone has any information that could guce me a rough eta or something??
Thank you

Company Tax Return - Home Rent as a Deduction

Prab — Sun, 16 Feb 2020 13:36:54 GMT

Hi, Could someone kindly help me to know folowig thing?

I am completing tax return for my small business which is a company.

This business engaged in commercial cleaning work and I had a separate room for all document, legal and bookkeeping work. I didn't use this room for any personnal thing and the room was locked as there were cleaning chemicals and equipment stored in the same room. This room was 12% of the total house area. The monthly rental I paid was 1200 per month.

My question is, Am I able to claim 12% of my rent as a deduction.

Thank you

Prab

GST is it claimable on Google Adwords in Australia

GaryJones — Sun, 16 Feb 2020 03:11:44 GMT

Am I allowed to claim the GST charged by Google Adwords as I am a buisness registered for GST and have an ABN, I am of the understanding that as Google is an overseas supplier, that if I am a buisness registered for GST and have an ABN, I can't claim the GST on my activity statement, I need to contact Google Adwords and advise them of my business is registered for GST and I have an ABN, then I wont be charged the GST. Could anyone enlighten me on this subject

GST

AnitaJoseph — Fri, 14 Feb 2020 05:36:03 GMT

Can I claim GST on an expense claim by an employee for $110? - there is a restaurant receipt provided, however the receipt doesn't say the words "tax invoice".

GST on per diem

JoeBloggs — Fri, 14 Feb 2020 05:28:36 GMT

Say a person works for company X, they provide services to company Y via subcontracting through company Z.

Company X invoices company Z for the work + GST, company Z then pays the invoice and on-charges the same fee + GST to the end customer company Y.

Those services include GST obviously but however, some work involves travel.

The customer company Y pays for travel/accomodation in-house for the employee of company X and allows a per diem within ATO guidelines to be paid to the employee of company X.

However company Z is instructing company X to only pay the employee the approved per diem MINUS GST so that the employee is only getting 10/11 of the approved amount by the customer company Y.

IAW with GST regulations, is this a correct direction from company Z given per diems within ATO guidelines are not meant to be taxable?

Treating a Building Improvement Correctly

Justine_Ellis — Fri, 14 Feb 2020 02:23:44 GMT

I would like to ensure that I am treating an asset correctly for our business.

We are in a leased building and we would like to have some works on the building completed to improve it as we will be here long term.

Our landlord has agreed to the changes and we have agreed to split the cost of the upgrade ($30K).

I have paid the total bill and our landlord will reimburse their 50% at some point this month or next.

Our auditors have advised me to account for the whole 30K in our building assets and then when the landlord pays us the $15K, to receive it as income.

Is this correct?

I would be receiving and depreciating a 30K asset that we essentially only own 50% of.

I would then be receiving 15K income that relates to this. (unless the auditor means I should offset this against the original asset requisition, but that is not the way it was communicated).

Also, I am sure the building owner will be accounting for the 15K in their assets also.

I want to ensure I treat this correctly from the start or it could get pretty messy come FYE.

Water on-charges

BernieC — Thu, 13 Feb 2020 23:49:51 GMT

We are a Local Goverment Council and supply water to some of our residents. Each resident has their own water metre. We receive a GST free invoice from our water supplier for water. We then charge our customers for the amount of water they have used. Should we be adding GST to their invoice

ABN number for invoicing working overseas

Macemarine — Thu, 13 Feb 2020 13:13:33 GMT

I have started a new job in the middle east as an Australian citizen can I use an Australian ABN number to invoice the company.

I enquired before I came to do the work but was told I cannot use an Australian ABN number outside of Australia as a sole service provider

Please advise what I need to do as they will pay me upon presentation of an invoice but I have to register on their portal before I can be paid then it will be sent to my account in Australia

myGovID

Phil3 — Thu, 13 Feb 2020 06:14:58 GMT

Question is

I have a contractor BAS Agent working for me who needs access to my tax practice - tax agent portal files - of all my clients. The contractor, being a registered BAS agent has her own myGovID already on her mobile phone and uses that to access her own clients tax records held under her own practice. I as the tax agent "employer" of the BAS agent do not have access to any of the BAS agents client details or tax records - they are not my clients. I have no knowlege of her client names, tax file numbers or ABN's.

I intend to use the RAM system to join her identity to my own ABN so that she can use a myGovID to access my client files. As mentioned she needs access to my clients possibly every time she works for me and naturally when I get new clients who must be entered under my access in the tax agent portal (Online Access).

The question is if she has only one version of myGovID on her mobile how will the system determine whether to access clients of Phil3

or clients of the BAS agent that she has for herself. Naturally I don't want to have access to her client tax records

GST on Uber Receipts

neuendorf — Thu, 13 Feb 2020 03:39:30 GMT

Can anyone advise if you can claim gst on an uber receipt under $82.50 for work purposes, no tax invoice just a receipt. As all Uber Drivers are to registered for gst purposes I would assume yes you can.

Full payment required before stock despatch.Can we raise Proforma invoice

AnneN — Wed, 12 Feb 2020 20:31:40 GMT

Hi,

We have customers under CASH term which requires full payment before stock despatch. Customer request an invoice copy as proof of sales (quantity and unit price).

Technically we cannot raise TAX INVOICE before stock despatch so can we raise proforma invoice and request customer to add extra GST on top when making payment to us?

Thank you

Bed Debit

Andrew5 — Wed, 12 Feb 2020 06:54:59 GMT

Dear Mr/Mrs

May I ask a question about how to deal with bed debt?

We assume that A and B company had the same director. A was the new company. Then A borrow $100,000.00 from B to start the business. After two year, A was bankrupt and didn’t refund the $100,000.00 to B. How B Company could deal with this $100,000.00 bed debt?

Thank you so much for your help!

Motor Vehicle expenses in family trust

RhondaT — Wed, 12 Feb 2020 05:50:06 GMT

I'm confused!

A business is run through a family trust. The trust does not own a motor vehicle. The vehicle is owned in individual name. A log book has been completed showing the business use percentage of the motor vehicle. Can the business use portion of the motor vehicle expenses be claimed as an expense to the trust (even though the trust does not own the motor vehicle)? Or, is it claimed in the individual tax return against the trust distribution of profits (though I believe this is not possible anymore)? Or, should it be treated as a reimbursement to the individual (who is not an employee)?

Employees referral vouchers - FBT

JL5 — Tue, 11 Feb 2020 21:35:23 GMT

Hi,

We have an employee referral program where if an employee successfully referred someone to the company they will receive a $500 gift voucher. Does all amount over $300 attract FBT regardless of the frequency /regularity of the event?

Thanks

Ex-gratia payments

sylviaelter — Mon, 10 Feb 2020 05:06:58 GMT

Hi I have received an ex-gratia payment from the NSW goverment during 2018/19 and wanted to know whether this is taxable or non-taxable. The payment was for small business who experienced disruption during the Sydney light rail project. It was a payment in the form of "ex-gratia" to help with the financial assitance during the time of disruption. I have spoken to the advisers linked to this project from PKF who have informed that the payment is to be treated as a normal ex-gratia payment- can you please confirm this will be non-taxable. Thank you

Training and GST

Cam2 — Sun, 09 Feb 2020 21:45:45 GMT

My client is giving some training as part of her business. Should she charge GST on this training?

Over Payment and Payment Summary

TaxQuestion1 — Fri, 07 Feb 2020 11:14:04 GMT

If I discover an employee over payment in September 2019, for payments received in August 2019, I correct the over payment and establish a Loan for the NET figure. After the correction, the YTD figures would not include the over payment. If in March 2020 I choose to waive the employee's obligation to repay (repaying is an EBA obligation), do I either:

Reverse the original correction, so that the empoyee's YTD figures and Payment Summary includes the actual payments received (i.e. these figures would include the original over payment)?

Let the original correction remain, so that the employee's YTD figures and Payment Summary includes the correct payments received (i.e. these figure would not include the original over payment)? The unrepaid loan is potentially liable for debt waiver FBT.

Overpayments and Payment Summary Advice

TaxQuestion1 — Fri, 07 Feb 2020 07:32:43 GMT

If I discovered an overpayment in Sept 2019 for incorrect wages in Aug 2019, I would reverse/correct the overpayment in the Sept 2019 payrun. I would then establish a loan for the NET amount and send the employee a letter to request to recover the overpayment via an after tax deduction .If in early June 2020, I decide to waive the employees existing obligation to repay the overpayment, do I either:

Remove the reversal/correction made in Sept 19. So the payment summary reflects the actual salary received (i.e. the payment summary will now include the ovepayment amount)?

Or...

Leave the Sept 2019 reversal/correction in place (i.e. the payment summary will not include the overpaid amount), and calculate any FBT liabilty on the loan amount?

Regarding to Foreign Tax Residency status

detectiveT — Fri, 07 Feb 2020 03:51:46 GMT

Hello,

Recently my company received an email from Foreign Tax Operations/Westpac asking me to provide a tax residency status confirmation to CRS@westpac.com.au, which we haven't receive the form that they claim to send via post, is this form available somewhere online? Thank you!

Here is the email I received: http://i2.tiimg.com/635215/5e52b76ad1bd2208.png

Sale of Business and Capital Gains Implications

Arman — Fri, 07 Feb 2020 03:05:04 GMT

Dear ATO Community

Two items have been sold under separate contracts:

1. Land; and

2. Business that is on the land being sold.

Question 1: Is the business a CGT Asset for CGT Event purposes? I am familiar with section 108-5(1) of the ITAA97.

Question 2: If the business a CGT Asset, what is the CGT Event? Is the sale of the business a CGT Event A1?

Thank you in advance for your assistance.

Kind regards

FBT - Gift Card

SGatTF — Thu, 06 Feb 2020 23:46:16 GMT

Hi There,

My question is, if a company gave an employee a gift card of $500 in September, then gave him/her (same employee) another $100 gift card in December, when caculating FBT payable, is the $100 one exempt or should be included as $600 in total since it's the same employee?

Thank you for your time.

Regards,

Deduction for assets

RAVINDER — Thu, 06 Feb 2020 03:56:28 GMT

I'm a small business entity and depreciate asset (self-assessed effective life) by using straight line method in the previous year Company Tax Return 2017-2018.

In year 2019-20 Tax Return, Company VAN (cost $9,000) depreciate by using instant assets write-off method.

Please advise how to fill following section of the Tax Return if I select “Small Business Entity” at ITEM-3 (STATUS OF COMPANY). If yes, how?

Small business entity depreciation

Deduction for certain assets

Deduction for general small business pool

Total depreciation Expenses are $21,180 at ITEM 6 -X

($9000 depreciate as instant assets write-off and $12,180 depreciate with Straight line method).

Foreign exchange provider income subject to gst

Jasonwat — Wed, 05 Feb 2020 08:24:39 GMT

Hi all

If Im running a foreign exchange service business by buying and selling currencies for clients. Please advise if the income i earned from buy/sell price difference should subject to GST or not

RAM not sending authorisation code when trying to link to a business

Dani_rose_xo — Wed, 05 Feb 2020 04:33:11 GMT

Hi everyone, I’m trying to link a business in RAM, but it won’t send an authorisation code via email in order to do it. I don’t know what I’m doing wrong. Can anyone help? Who do I speak to about it?

Vehicle chattel mortgage

ia — Wed, 05 Feb 2020 00:03:23 GMT

I am a joint director of a Pty Ltd company. I currently have a car on a chattel mortgage which was purchased in my name. Is the company able to claim the interest expense as a deduction?

Deduction for Company MV Expenses when car owned by employee/associate

DuncanS — Tue, 04 Feb 2020 11:58:26 GMT

In this instance I act as BAS Agent.

Based on actual expenses, the P&L shows MV expenses for FY19 of $12,832 and MV Contribution of $6000.

These costs (net $6832) include fuel, insurance, repairs but not interest or depreciation. Tax Invoices are held.

The car is owned by the wife being an employee. I understand the male director has a motor bike.

The Chartered Accountant has advised in preparing the FY19 Financial Statements that the company does not own a car and no MV expenses can be claimed (or GST claimed).

The $6832 has been journalled to the Directors Loan and MV expenses for FY19 are nil.

In May 2019, the ATO published a 2 page Fact Sheet Small business Motor vehicle expenses

The Fact Sheet states that you can't claim depreciation if the vehicle is owned by your employee.

As mentioned, the above figures do not include depreciation.

The Fact Sheet states your business can claim a deduction for the running expenses if the vehicle is owned or leased by the business.

Other references of interest are GST 2006/4, QC 31951 and QC 33720.

My reading of QC 31951 is that the company may be deemed to be the owner for actual costs if there is a Family or private arrangement.

Over the years, Chartered Accountants have told me that the purpose test is the relevant test for claiming a MV deduction (not ownership) ie were the costs incurred by the company for business purposes.

The Chartered Accountant would prepare the MV Contribution at year end.

I rang the ATO about the above and the initial reaction was the purpose test is important - a ATO specialist was consulted who said the company must own the car to claim the deduction, I mentioned to the ATO representative that I would question this advice.

I seek guidance that the adjustment of MV expenses to nil in FY19 by the Chartered Accountant is the correct treatment.

Duncan

Do we receive Notice of Assessment to confirm what to pay for Company tax return

sherlynneoh — Tue, 04 Feb 2020 03:29:56 GMT

Just a general question as I can't find it anywhere in the ato website.

For a small company (Pty Ltd), do we receive notice of assessment to confirm the amount tax payable for the submitted company tax return? If not, how do we know about the due date for payment and how much to pay? just pay exactly as per tax return submited?

Thank you.

Gratuity

Seeoex — Mon, 03 Feb 2020 11:35:46 GMT

What is the definition of a gratuity payment on termination of employment?

Fringe Benefits TAx

Luk — Sat, 01 Feb 2020 05:16:58 GMT

Hi,

I am looking for help on the other FBT issue. We have hire an overseas staff, who has already been living and worked in Australia. We are going to sponsor her to apply for the other visa (187) in his new position. Should I consider whether the visa application is the first time application or the renewal? It is becuase the situation will affect the FBT treatment. Thanks in advane.

Partnership Tax Returns

cs1956 — Sat, 01 Feb 2020 04:44:33 GMT

How do I view previously lodged partnership tax returns?

Do Contractor Per Diems attract GST

Jodieode — Fri, 31 Jan 2020 01:07:32 GMT

If I am contracted as a consultant to work away from home at $1000 p/d consultancy fee + $100 p/d per diem (agreed rate) and the client pays for my accommodation and flights do I charge GST on the full $1,100 or only on the consultancy fee?

Capitalise restructuring business operations

SM31 — Thu, 30 Jan 2020 05:24:28 GMT

We are looking at changing our business operations and moving specific functions to an outsourced model. ie employ an external party to operate some functions we currently do in house. As we have grown it is the best model from a risk perspective. Can we capitalise the costs to make this change and then ammortise these costs over several years as there will be long term benefit. From a Tax persepctive, can we claim a tax deduction in the first year when incurred or over the years we ammortise the cost or either. costs will be over $20k write off threshold. best business model is to ammortise the costs over a period rather than expense in the first year. thoughts?

Foreign Tax

Kenopy — Thu, 30 Jan 2020 05:10:35 GMT

My company has acontract for services with a Company in China.

The China Tax Bureau took out 5% off the total gross value of the contract as Tax with the receipt under my Company name

Of the income from this to my Company, the Australian Taxation laws deemed the next income to be a Personal Services Income, and charged it under my Personal Name.

Am I able to offset the 5% taken in China from my Personal Services Income tax? If not, I have grossly overpaid tax in 2 territories for my contract.

Late fees on business expenses

jason_simo — Thu, 30 Jan 2020 03:07:39 GMT

Hi all,

I have a question relating to late fees on business expenses. When a client has late fees added to regular business expenses such as tolls invoices, phone/internet expenses, electricity and for the businesses credit cards. Are these late fees deductible for a business? I understand that fines and penalties imposed under Australian Law are non-deductible. However, I don't believe late fees would be classed as such?

Any advice would be appreciated.

Jason.

Tickets as a Gift to potential Client

SOA — Thu, 30 Jan 2020 02:41:46 GMT

A Client bought two tickets to Elton John one for himself and one for a potential client, is one for the potential client GST & tax deductable?

GST on services exported

mihah — Thu, 30 Jan 2020 00:29:13 GMT

I have a company that is an Australian company. We are looking to sell internet marketing services to US and Canadian companies.

The service is:
We will market their company strictly over the internet to increase brand awareness and attract more clients. Their companies will not be based in Australia or do any business in Australia. They will also not be present in Australia while the services are being delivered. Value of the services will vary, sometimes it will be below 1000 AUD, and sometimes it will be 2000 AUD and above.

Would this service be GST free? If so, do I just not charge any GST? Do I need to collect any information from these customers?

Deemed distribution - UPE

Joachim — Wed, 29 Jan 2020 06:10:18 GMT

Dear All,

Can someone pls assist me with this.

Under UPEs is this is not paid then the company should declare dividend to trust.

1. After this is done in the company financial receivables will be cr as no more recievable and dividends dr

Question is, company did not receive any benefit as no one paid the receivable to company. Or does legislation require trust to pay back loan and at the same time also pay dividend. ? How will this be accounted . pls help

2. Also the dividens recieved by the trust , will trustee pay tax on this ? thank u

FBT - Minor and infrequent for meal entertainment

nchen — Wed, 29 Jan 2020 03:38:39 GMT

Dear Community,

Our company provides Cab charge to employees for going home from the actual venue. E.g. Xmas Party

We also pay for flights/accommodation for employeesfrom interstate or overseas to attend the venue. E.g. Xmas Party

When applying s58P as we use actual method, do I add the Cab charge + flights/accommodation to the Xmas Party total Cost since it is connected to the event?

Thanks

The cost of managing the tax affairs for a holding company

tsla — Wed, 29 Jan 2020 02:20:00 GMT

I'm weighing up the pros and cons of starting my business with a two-company structure. The two company structure I am referring to is when I have a parent company, which owns 100% of the shares of a subsidiary. The parent company never trades or enters into contracts with anybody and simply holds a few assets that are licensed to the subsidiary. Note that I use parent company and holding company interchangeably.

The main downside to this structure appears to be the cost associated with maintaining two companies. However, in addition to the annual ASIC fee companies must pay, what is the cost of maintaining the tax affairs for my holding company? From my understanding, if my holding company never trades with customers and doesn't hire any employees, it will never incur any expenses or revenues, which means I shouldn't need to file any tax returns. Is my understanding correct or am I missing something? The last thing I want to do is to set up a two company structure and realise that I've overlooked the administrative costs associated with doing so.

If a parent company transfers assets to a wholly owned subsidiary, will it need to pay CGT?

tsla — Wed, 29 Jan 2020 01:25:18 GMT

I'm considering setting up a company; however, I'm also thinking ahead into the future when I want to set up a dual-company structure. If i set up a holding company today that owns CGT assets (e.g. real estate) and I eventually decide to set up another company as a subsidiary wholly owned by the parent company, will I need to pay CGT if I transfer the CGT asset from the holding company to the subsidiary?

2 Sole trading Business under 1 ABN

1cent — Tue, 28 Jan 2020 04:08:15 GMT

Having a confusion over 2 Business under 1 ABN ?

My first business, 3 year running now, as a web developer has minimal income less than 20K annually, and is not register for GST.

My second business is a rydeshare casually, income less than 30K, puts me on an obligation to be register for GST.

My total income for ABN is 20K+30K = 50K, less than GST obligation threshold of 75K.

I understand Rydeshare must be register for GST. No problem. Done.

Now the confusion is do I need to include GST in my first buiness as a webdeveloper, which was previously not register for GST before i started rydeshare ?

Also, I use same car for both Rydeshare and Web Development business 30 % each, ,my personal car use is 40%.

So do I claim GST in my Deprection or not ? Car was bought before I was register for GST.

Thanks in advance

1cent

Car allowance

Lillian_Zhou — Tue, 28 Jan 2020 01:13:54 GMT

Hi,

May I ask what is the reasonable amount of car allowance that an employer can pay? If an employee already gets car allowance, can he still get reimbursed for his fuel costs? Any tax implications for the company and the employee?

Thank you.

Lily

Two ABNs under same sole trader - how to structure tax?

zmarissa — Mon, 27 Jan 2020 21:21:00 GMT

Hi all,

I've got two businesses, both under different ABNs - but as a sole trader for both. One is my fitness teaching business, the other is as marketing/business development consultancy.

What is the best way to structure my tax? Would this count as individual tax return or because the businesses are different, would I be able to lodge individually?

Thanks in advance.

Franked dividends

Karend1 — Mon, 27 Jan 2020 15:03:15 GMT

I was wondering if there is a way of getting my franking credits from my company. Unfortunately it has been in a loss situation for the last three years and we have no retained profits but a lot of franking credits?

thanks

Entertainment & GST

KerensaCollins — Mon, 27 Jan 2020 03:55:46 GMT

I am training to be a bookkeeper; and I always get confused with claiming for "Entertainment". If my client buys a contractor or customer lunch, is this recorded as N-T or GST? Thank you in advance for your assistance, kind regards.

GST registration query

Peter6 — Mon, 27 Jan 2020 01:39:56 GMT

We have a contractor who is working on a project.
On the ATO site his GST registration was cancelled in April last year, but on the ASIC website it says his business is registered & further more he is GST registered.
Can you advise which data base is correct?
We need to be using a GST registered contractor.
Thank you

GST refund for international online shopping

FionaYY — Sun, 26 Jan 2020 14:02:40 GMT

I am an individual consumer. I purchased a faulty item from an online retailer in UK (one of the biggest department stores). The shop collected 10% GST directly from me when I placed an order. I returned the item but GST was not refunded. I noticed that ATO website states that "The GST rules that apply to goods returned in our domestic market also apply for returned low value imported goods. This means if you return goods and get a refund, you should also get a refund of the GST. "
https://www.ato.gov.au/business/international-tax-for-business/gst-on-low-value-imported-goods/information-for-consumers/#Returnedgoods1

I contacted the shop and they refused to refund it to me.

What can I do?

Register for GST for small business + PAYG income earner

jtolsher — Sun, 26 Jan 2020 01:42:15 GMT

i earn more than $75k in a PAYG full time job. I also have a business (sole trader)which will not earn more than $75k per tax year.
Do i need to register for GST for the business, adding that income with my PAYG income?
Or do i treat the business separately and not register for GST?
 
 

Is it GST-free sales?

wmarcus — Fri, 24 Jan 2020 06:00:43 GMT

Hi all,

I am running a business that organizes and designs tour and/or event packages for clients outsided Australia. Normally they will not stay for more than 2-4 weeks during their visit in Australia.

Is that a GST-free sales?

Thanks!

Best Regards

Business charges same total price for same product whether GST exempt or not

abc123 — Fri, 24 Jan 2020 05:28:01 GMT

Not sure if this is in the right place or whether specifically ATO question or not...

Most over the counter medications etc are subject to GST but some can be obtained on prescription too which would not be subject to GST in that case.

This australian online pharmacy charges the same price whether the product is supplied with or without prescription (unless the maximum charge under the pbs kicks in for the prescription product), despite the fact that no GST applies to the identical product when a prescription is supplied. Further there is no indication before paying for the product whether the product is GST exempt or not. I don't think it is actually a requirement for the business to state whether GST applies or not before purchase (just to include GST in the price if it does apply) but this makes it more difficult for the consumer to work out that the pharmacy is actually making extra money out of the prescription item.

I asked the pharmacy to explain this but they refused to answer the question.

Is it legal for the pharmacy to seemingly pocket the GST saving on the prescription item?

GST

BDD — Fri, 24 Jan 2020 04:19:18 GMT

Hello

I am currently negotiating a contract with an overseas company. I will be paid a monthly flat fee. The purpose of the contract is to increase the organisations presence in Australia, but they want to engage me as a contractor. i will be required to register a company and maybe GST. My question is, do i charge GST for the flat monthly fee i will be invoicing? The total value of the annual contract will be above the GST threshold.

Kind regards

BDD

Significant Global entities & Joint Ventures

Cafucati999 — Fri, 24 Jan 2020 04:05:30 GMT

If a company who is a significant global entity have 50% ownership in a Joint venture with another company.

Would that joint venture also become a significant global entity if only 1 partner company is SGE while the other is not?

What about if both are SGE?

GST on GST-Free incidentals by a contractor

FC — Thu, 23 Jan 2020 05:23:02 GMT

Hello,

We have a contractor (not acting as agent and is GST registered) working on our premises and on a given day we had no milk or coffee in our facilities like we normally do. If the contractor purchases the milk and coffee (GST Free if purchased and consumed directly) himself and recharges it for reimbursement, are these recharges independent of the main taxable supply or incidental to the main taxable supply and should GST be charged?

Cheers!

Tax Codes on Capital Assets

AFC — Wed, 22 Jan 2020 03:42:17 GMT

Hi,

The company has purchased a new vehicle and I'm confused how to write the purchase into the accounts.

The cost of the vehicle was just under the $30K instant write-off threshold, but the GST takes it over the threshold. Can I report it as an instant write-off? How do I record and report the other capital costs, such as roofrack installation and vehicle wrap? Are they separate items and instantly write-offable this year?

Do I report the vehicle costs in the quarterly BAS, as each item ex GST is under the threshold?

Thank you!

BAS and Investments

Jane2020 — Wed, 22 Jan 2020 00:02:11 GMT

We are an aged care services provider. Apart from term deposit we also investment in shares and trust. I know we need to include bank interest earned in G1. Does anyone know what rules apply for share purchases/sales and capital gains/loss? Do we need to report these on BAS? thanks.

Dropshipping Internationally and to Australia (and having another Australian based business)

A4AUS — Tue, 21 Jan 2020 07:00:40 GMT

Hi all,

This is my first question here. Thank you for all your kind efforts and help, in advance.

I am starting a new dropshipping-based online store and I need to be clear about all tax related matters before I launch it and to make sure I set the pricing right from the beginning.

My supplier is in China and I would be selling to anywhere in the world including Australia.

I don't expect to have a turnover of A$ 75000 or more in my first year and thus I understand I don't need to register for GST.

I don't have an ABN for this particular business.

I do have an ABN for a service-type business based in Australia and am setting it up to start soon too. I'm not registered for GST for this one either.

My questions regarding the dropshipping business are:

1. Do I need to have a separate ABN for it ? or at all ?

2. My understanding is that I don't need to register for GST till my turnover is A$ 75000 or more (or expect it to be so in the coming 12 months).

a. Is that correct ?
b. When saying that turnover, it means only from the sales I make (dropshipping) to Australian residents. Correct ?
c. Would the turnover calculated as from my two businesses combined or would each business have separate entity alltogether ?
d. As long as I am not yet registered for GST, I then don't need to charge my Australian clients for GST on dropshipped goods. Correct ?

3. Would my overall income from my dropshipping business all be taxable ? or is it just the part from selling to Australian residents ?

4. One last question please, what if I also have an Australian based dropship supplier, vs the China based one ?

I really appreciate any clarification and any further tips you may kindly think I need to be aware of.

Thanks so much

Fringe Benefits Tax

Luk — Tue, 21 Jan 2020 05:46:53 GMT

I have sponsored a overseas staff to apply for the renewal of working visa in Australia. I understand that the cost of renewal is subject to FBT. However, will the related lawyer fee or immigration fee be subject to FBT, too?

finding vat consultant

yasi — Mon, 20 Jan 2020 05:58:51 GMT

My father is a businessman from Dubai and our company faced such problems due to VAT and the problems couldn't be solved. Is there any VAT consultants in UAE, contact me so we can discuss the vat related problem.

Partnership income distributed to taxpayer who hasn't received any partnership income

DivEx — Mon, 20 Jan 2020 05:32:34 GMT

Hi Everyone,

Taxpayer 1 entered into a partnership with Taxpayer 2, both are individuals. Taxpayer 2 never received any distributions from this partnership and less than a year later the partnership disolved. In the 2019 tax return, taxpayer 1 has lodged the partnership tax return claiming taxpayer 2 received an equal 50/50 split when this isn't true. What's the best way forward to have taxpayer 2's income attributed to taxpayer 1 who received 100% of the partnership income?

I'm thinking an objection explaining this, but just wanted to double check.

Thanks

DivEx

Legal costs in business acquisition

wronski — Fri, 17 Jan 2020 23:22:48 GMT

Currently

I have a business X that is in the process of acquiring a business Y with physical assets + goodwill.

I am engaging lawyers + banks + other services (e.g. building inspection) for the purposes of the acquisition.

Question

Are the legal fees, bank fees, and other service costs treated as expenses that can reduce income for my business X? or are they added to goodwill for the acquisition?

Penalty rate query

piyush2050 — Fri, 17 Jan 2020 04:03:17 GMT

Do weekend penalty rates come under employees allowance or overtime?

Thanks,

GST Registration

taxpayer_ — Fri, 17 Jan 2020 00:36:21 GMT

Hi,

I am running a small business and it seems like this financial year, I may go over the 75k GST turnover sometime in May.

If I were to register for GST in May, I know that I should charge GST from that date onwards to my customers but would I be ONLY liable to pay GST from GST registeration date in May until end of June? or would be liable to pay GST for the whole financial year (which would be minimum of $7500)

I am in a need to purchase a bigger vehicle for my business (possibly a van or a SUV) and I have been advised to buy the vehicle after I do register for the GST since I can get GST credit from the purchase of vehicle. Would this be a clever thing to do?

Referral Fees

Loata — Fri, 17 Jan 2020 00:03:00 GMT

Hello,

Are referral fees/bonuses subject to FBT?

Thanks,