Resources

How Green is Green?
More and more businesses are reviewing their supply chain systems which, although economically effective, may pose environmentally detrimental.

Claiming the tax concessions for research and development
Every June, as we reach the end of another financial year, many companies find themselves almost besieged by advice on last minute opportunities to minimise or reduce their tax obligations to the Tax Office.

Destination for expatriates
There are many countries that are attractive jurisdictions for expatriates, for both executives who move temporarily within an international corporate group, and for high net wealth individuals who move to that country to retire.

Australia as an International Holding Company Location
An International Holding Company is usually owned offshore and holds the shares in foreign subsidiaries. For a country to be an international holding company location, it must have a number of favourable tax aspects.

Tax Margin Scheme
The Full Federal Court has overturned a decision of the Federal Court and held that a taxpayer could use the valuation method under the margin scheme on the disposal of strata units, even though the taxpayer only had a contractual interest in the undeveloped property as at 1 July 2000 (Brady King Pty Ltd v Commissioner of Taxation (2008) FCAFC 118). Readers who have previously used the margin scheme for property acquired under a contract spanning 1 July 2000, and those entering into future property contracts, should contact their BDO adviser to discuss the implications of this decision.

Temporary Residents
The Minister for Immigration and Citizenship has recently announced an increase in the Minimum Salary Level (MSL) for temporary skilled overseas workers on 457 visas. The increase is the first in 2 years and will apply to all temporary skilled overseas workers, both existing 457 visa holders and new employees. The increase is expected to be effective from 1 August 2008 pending the issue of a Gazette Notice.

Court Rules on Tax Consolidation
A recent Federal Court decision has highlighted the difficulties in interpreting and applying tax provisions dealing with income tax consolidation. The decision in Envestra Limited v Commissioner of Taxation (2008) FCA 249 is particularly important because it is the first case to consider the operation of the tax consolidation rules. The tax consolidation rules provide that certain groups of entities (generally companies) can be treated as a single taxpayer for income tax purposes. This means that the head company of the group is the taxpayer for the group and the subsidiary members of the group are effectively treated as divisions of the parent company, instead of maintaining separate income tax identities.

Tax Office gets Carpeted on Deposits
The High Court agrees with the Australian Tax Office’s (“ATO”) view that forfeited deposits are subject to GST. This decision was the result of an appeal to the High Court against the decision by the Full Federal Court which contradicted the ATO’s published views.

Tax Payroll
Payroll tax is a tax levied by the States and Territories on businesses whose total annual Australian wages exceed a specified exemption threshold. The threshold varies between States and Territories, as does the rate of payroll tax payable on the relevant wages.

Changes to the EMDG scheme from 1 July 2008
The Federal Government announced in the 2008 Budget an increase in funding of $50 million in 2009-10. The Export Market Development Grant (EMDG) scheme provides assistance to Australian exporters by repaying part of their promotional expenses. The EMDG scheme aims to support a wide range of industry sectors, including inbound tourism and the export of intellectual property and know how outside Australia.

Federal Court doesn't holdback Motor Dealers
This morning, the Federal Court released its judgment on GST and holdback, declaring that the Commissioner of Taxation must refund GST amounts overpaid by KAP Motors and GAP Motors in respect of ‘holdback’ payments. Justice Emmett found that motor dealerships were entitled to a refund of GST amounts incorrectly remitted, even if the dealerships have not and do not intend to pass these on.

Research and development tax concession
Changes to the R&D tax concession will enable Australian subsidiaries of foreign multinationals to access the R&D tax concession, therefore encouraging further R&D investment in Australia.

Corporate Tax Master
Corporate Tax Master provides the corporate sector with a sophisticated software product that prepares high quality tax returns efficiently and cost effectively, on-line.

Federal budget news 07
The 2007-08 Budget reflects on Australia’s strong economic position - continued budget surpluses, strong growth, low unemployment and low inflation.

Tax briefing - GST update
David Wilson discusses the current GST climate including the ATO GST compliance program, common traps that occur, GST litigation and other hot topics.

Tax briefing - Financing arrangement
Brian Richards discusses financing arrangements and the specific matters involved including relationships, risk matters and tax matters.