From the category archives:

Taxpayer Alerts

ATO examining takeover arrangements

February 19, 2010

Tax Commissioner Michael D’Ascenzo today warned the ATO will take a close look at uncommercial arrangements designed to claim unintended GST benefits for a company’s float, merger or acquisition.
Under these arrangements, a company involved in a takeover uses a related associate to procure all the services required for that takeover – for example legal and [...]

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Tax Office warns about sham mortgage arrangements

December 28, 2009
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Media release 2009/67
The Tax Office today issued a taxpayer alert warning people about sham arrangements promoted as ‘mortgage management plans’ which promise to help home owners repay their home loan sooner and claim tax deductions to which they are not entitled.
Tax Commissioner Michael D’Ascenzo said while these arrangements may appear attractive, people should be warned [...]

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Tax Office warns about R&D schemes

December 28, 2009

Media release 2009/68
The Tax Office this week released a taxpayer alert warning people to be cautious of investment schemes that abuse the research and development (R&D) tax offset.
These arrangements involve a company structuring contracts with a registered research agency to provide R&D services in order to access the R&D tax offset.
The agreement involves what appears [...]

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ATO focus on life insurance policies issued from tax havens

November 23, 2009
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Media release 2009/62
The Tax Office today issued a taxpayer alert warning taxpayers to be cautious about investing in life insurance policies issued from insurance companies based in tax havens, such as Vanuatu.
Tax Commissioner Michael D’Ascenzo said he is concerned these arrangements may attempt to exploit the lack of transparency in tax havens.
“We know these arrangements [...]

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SMSF Related Party Transactions Under Review

June 11, 2009

Tax Commissioner Michael D’Ascenzo today warned trustees of self-managed super funds (SMSFs) about people offering to set up agreements between funds and related parties to purchase assets, particularly properties.
“We’re concerned about arrangements being offered to trustees that breach the in-house asset rules,” Mr D’Ascenzo said.
“These arrangements use a paid third party to set up an [...]

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Tax Office focusing on uncommercial insurance arrangements

June 6, 2009

The Tax Office yesterday issued a taxpayer alert warning businesses to be wary of arrangements that attempt to claim inflated deductions for uncommercial insurance expenses.
Tax Commissioner Michael D’Ascenzo said the Tax Office has doubts about the legitimacy of these arrangements as they aim to inappropriately reduce taxable income by claiming excessive tax deductions.
“We know these [...]

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Tax Office focusing on inappropriate loss schemes

May 22, 2009
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Tax Commissioner Michael D’Ascenzo today released three taxpayer alerts warning people the Tax Office is closely reviewing three arrangements that attempt to falsely generate claims for inappropriate tax losses.
Mr D’Ascenzo said he has doubts about the legitimacy of these arrangements.
”In the current economic environment we’re expecting to see an increase in tax losses,” Mr D’Ascenzo [...]

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Tax Office warns about tax treatment of retail premiums

May 20, 2009
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The Tax Office today issued a taxpayer alert designed to help shareholders make informed decisions whether to take up entitlements to a share offer based on the tax treatment of retail premium payments.
Tax Commissioner Michael D’Ascenzo said he is concerned some companies issuing share entitlements may be providing incorrect advice that retail premiums will be [...]

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Tax Office examines SMSF use of negotiable instruments

May 19, 2009
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Media release 2009/33

The Tax Office today issued a taxpayer alert warning trustees of self-managed super funds (SMSF) to be cautious of arrangements involving the non-commercial use of negotiable instruments, such as promissory notes, in an attempt to gain income tax and super benefits.
The arrangements involve a trustee or member issuing a promissory note, cheque or [...]

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Commissioner examining uncommercial property arrangements

February 18, 2009

Tax Commissioner Michael D’Ascenzo today issued two taxpayer alerts warning the community that the Tax Office is closely examining uncommercial property arrangements that try to obtain unintended GST benefits.
The alerts cover arrangements where a land owner and its associate delay invoicing and payment for construction services in an attempt to claim input tax credits and/or [...]

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Tax Office monitoring capital gains tax avoidance by foreign residents

November 18, 2008

Tax Commissioner Michael D’Ascenzo today issued two taxpayer alerts warning foreign residents selling indirect holdings in Australian real property about arrangements that attempt to avoid Australian capital gains tax.
The alerts cover arrangements that attempt to circumvent indirect holding rules through staggered sell down arrangements and manipulation of the value of assets.
Tax Commissioner Michael D’Ascenzo said [...]

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ATO issue 4 new Taxpayer Alerts

June 25, 2008

The Tax Office today issued four taxpayer alerts warning people of its concerns about abusive tax schemes.
These alerts cover employee savings plans, salary deferral arrangements, a profit washing scheme and a liquidation scheme.
Tax Commissioner Michael D’Ascenzo said people involved in or considering these schemes should be warned they face close examination by the Tax Office.
“These [...]

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Contributions to superannuation funds under scrutiny

June 13, 2008

The Tax Office today issued a taxpayer alert warning trustees and members to be cautious when moving assets other than cash into superannuation funds.
When assets other than cash are transferred to a superannuation fund trustees must make sure the fund accurately reports the market value of the assets and considers any other relevant superannuation regulatory [...]

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Certain stapled security arrangements under review

January 14, 2008

ATO Media Release 2008/2

Acting Tax Commissioner Bruce Quigley today warned people to be cautious about claiming deductions for losses incurred under certain stapled security arrangements.
In these arrangements the company issuing the securities suggests that the investor may claim deductions for losses in certain circumstances.
These circumstances include the assignment, transfer or surrender of the note, or [...]

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Tax Office Warning on Educational or Scholarship Trust Schemes

June 15, 2007

ATO Media Release
The Tax Office today warned taxpayers to be cautious of arrangements that seek to reduce tax through ‘education or scholarship trusts’ for a student who may be a family member of the person contributing to the trust.
Tax Commissioner Michael D’Ascenzo said he is concerned about whether taxpayers who enter into these arrangements are [...]

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