Division 7A ITTA 1936 (Cth) – compliance & consequences

Division 7 (sections 102V to 109ZE) of the Income Tax Assessment Act 1936 (Cth) (Tax Act) contains specific requirements for advances of moneys and loans between private companies and its shareholders or associates.  Section 109B of the Act describes three (3) classes of payments which will be deemed to be dividends: [Read more…]

Does your start-up qualify for an ESIC tax-offset?

Coming into force on 1 July 2016, the Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 (Cth) (Innovation Act) amends the Income Tax Assessment Act 1997 (Cth) (ITAA) to provide tax incentives for investors in eligible Early Stage Innovation Companies (ESIC’s). [Read more…]

Trust restructures – relief from capital gains tax

Capital gains tax (CGT) is applied to and calculated on the realisation of “capital gains”.  If a business wants to transition from a Unit Trust to a company structure (for example) and the value of the Units in the Trust has increased then it’s likely that the sale or transfer of the Units will result in a capital gain by the Unitholder.  In circumstances where the Unitholder may not have actually received any cash to pay the capital gains tax, surely there must be an exception? [Read more…]

Changes to capital gains tax roll-over relief regime

On 8 March 2016, the Tax Laws Amendment (Small Business Restructure Roll-over) Bill 2016 (Bill) received royal assent.  The explanatory memorandum for the Bill states that it makes a number of amendments to the Income Tax Assessment Act 1997 (Cth) to provide greater flexibility for small businesses to change their legal structure in order to: [Read more…]

Payroll tax and your business

In Queensland, businesses that pay wages of more than $21,153 a week or are a member of a group that exceed this amount must register to pay payroll tax.[1] Businesses that overlook this obligation risk considerable penalties if they fail to register in time. This article outlines businesses obligation in relation payroll tax and how to take advantage of any exemptions. [Read more…]

Employee Share Scheme (ESS) offering an option

What is an ESS?

An Employee Share Scheme (ESS), also known as an Employee Share Option Plan (ESOP), is a contribution plan that remunerates employees by providing them with securities or an option to acquire securities and create a beneficial interest in the company. [Read more…]

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