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Bulletins 
Personal Property Securities Reform - August 2010

The Personal Property Securities Act 2009 was passed on 14 Dec 2009 and whilst this legislation will make wholesale changes to the registration of security interests in personal property, it will also radically change the notions of legal title over such property. Those who do not understand how the legislation will affect them, may place their assets at risk.

We will be holding a Professional Advisors Conference to CPN members on 29 October 2010 and this topic will be presented that day.


Click here to read our special CPN bulletin which provides an analysis of this reform and its significance to your clients.
 

  
ATO Takes Hard Line on Unremitted PAYG - July 2010

Click here to read the Tax Bulletin on this topic.

  
The Growth Areas Infrastructure Contribution is now in force - July 2010

The Growth Areas Infrastructure Contribution ("GAIC") came in to force on 1 July 2010.  It has commenced despite the fact that the legislation to expand Melbourne's Urban Growth Boundary ("UGB") is still being considered by Parliament.

Now that the GAIC has commenced, affected land owners and their advisors need to take action in order to avoid incurring unexpected costs.

Click here to read the Tax Bulletin on this topic.

Pitcher Investment News - June/July 2010

Click here to read the Pitcher Investment Newsletter
 
Taxation of Trusts - The ATO 'Speaks'

As we highlighted in an earlier Tax Bulletin, in late March this year the High Court handed down an important decision regarding the taxation of the beneficiaries of trusts.
The ATO has now outlined the compliance approaches it will take as a result of the High Court decision. 

Click here to read the Tax Bulletin on this topic.  
Private Company with an unpaid present entitlement

Some six months after it released a draft version, the ATO has issued its final Ruling on the circumstances in which a private company with an unpaid present entitlement ("UPE") from an associated trust may be taken to have made a loan to that trust within the meaning of Division 7A.

In conjunction with the Ruling, the ATO has issued a draft Practice Statement which provides guidance on complying with the Ruling.
 
Click here to read the Tax Bulletin on this topic. 

Federal Budget Bulletin 2010/11

The Critical Point Network is pleased to provide you with a summary of our latest Tax Bulletin - an update publication for our members.

Click here to read the Tax Bulletin on this topic. 
   
   

New Tax System for Managed Investment Trusts

The Government has announced today that a new dedicated tax system for Managed Investment Trusts will be introduced from 1 July 2011.

Click here to read the Tax Bulletin on this topic.



  

Victoria's Growth Areas Tax to Proceed

The Bill to implement the Growth Areas Infrastructure has been re-introduced into Parliament and is expected to become law soon.  Following an agreement reached between the Government and industry bodies, the Government has now obtained the support of the Opposition to the Bill in an amended form.
When the Bill does become law, it will be accompanied by the law that will expand Melbourne's Urban Growth Boundary to include an additional 24,500 hectares of developable land.

Click here to read the Tax Bulletin on this topic.    
 
  

Victorian Budget 2010/11

The Victorian Government has handed down its Budget for the 2010/2011 financial year.  The Budget provides modest tax relief in the form of a reduction in the rate of payroll tax and a cut in WorkCover premiums.

Click here to read the Tax Bulletin on this topic.


Pitcher Investment News - March/April 2010

Click here to read the Pitcher Investment Newsletter

The Henry Review: What it Means to You and Your Business

On 2 May 2010 the long anticipated "root and branch" review of the Australian taxation system as well as the Government's initial response to the recommendations made in the Henry Review was finally released to the public.

Pitcher Partners is pleased to provide you with a summary of the Henry Review and the Government's response. 


Click here to read the Tax Bulletin on this topic.    
 

  
New Land Tax Notification Requirements

Recent amendments to the Land Tax Act 2005 and the Taxation Administration Act 1997 impose new notification requirements on land owners in Victoria that pay land tax. 
The new notification requirements will impact taxpayers in relation to their 2010 land tax assessments.  

Where a taxpayer fails to notify the State Revenue Office as required, it now has authority to impose a penalty on the taxpayer. 


Click here to read the Technical Bulletin on this topic.    
 

  
Employment Taxes Update
FBT, Payroll Tax and WorkCover - Audit Activity

There has been a significant increase in the level of compliance activity being conducted by the various Revenue Authorities in the Employment taxes area over the last 12 months.  Based on our intelligence we expect that this level of activity will continue to increase over the coming 12 to 18 months.
I have attached a PDF version of a Tax Bulletin that was distributed to our own clients late last year.  It sets out how businesses are targeted for audits in FBT, PRT and WC and what compliance programs are currently being conducted.

If your client is targeted for an FBT, PRT or WC audit or some compliance review that, you involve employment taxes specialists.  This is particularly important where the client is receiving a site visit from a Revenue Authority or where any written submissions are being lodged with an Authority.  Not only do they have strong contacts with appropriate people within the various Revenue Authorities, they also have extensive experience in dealing with such issues and know exactly what the Authorities are looking for and the way in which the review will be conducted.  We have seen various instances of our own clients  endeavouring to handle such issues on their own only to unintentionally misrepresent matters or misunderstand the requests thereby causing additional work and problems.  We have similarly seen a number of instances where the Revenue Authorities have focused on areas of understatement by taxpayers without giving equal attention to areas of potential refund.

We would also suggest that you take the time to review the attached Bulletin and consider the potential impact on your clients.  Where appropriate, clients should be made aware of the potential compliance programs, to take appropriate steps to mitigate potential issues or risks.


Click here to read the Technical Bulletin on this topic.    

Research and Development Tax Concessions  
Proposed Laws for the New Regime

On 18 December 2009 the Government released draft legislation for the new Research and Development ("R&D") Tax Incentive Program.  This draft legislation introduces a new "Tax Offset" regime that is intended to replace the current R&D Tax Concession Rules

Click here to read the Technical Bulletin on this topic.        

Taxation of Employee Share Schemes  

Early this month the Parliament passed legislation to reform the taxation of employee share schemes (“ESS”).

From an employee’s perspective the new rules will apply to shares or rights acquired under an ESS (“ESS interests”) on or after 1 July 2009.  ESS interests issued before this time can also be brought within the new rules if they have not been taxed under the old rules - their taxing time and whether a refund is available if they lapse however, will be determined under the old rules.

The new rules for determining the amount to be included in an employee's assessable income apply to all outstanding ESS interests – i.e. whether they were granted pre or post 1 July 2009.

The new employer reporting rules will also apply to all outstanding ESS interests – i.e. whether they are pre or post 1 July 2009.
Click here to read the Technical Bulletin on this topic.       

Investment Allowance - summary of eligible and non-e  ligible assets 

Click here to read the Technical Bulletin on this topic.

Xmas and FBT

Click here to read the Technical Bulletin on this topic.

  

Division 7A - Practice Note on the requirements for a valid loan agreement

Click here to read the Technical Bulletin on this topic.

  

Pitcher Investment News - October/November 2009

Click here to read the Pitcher Investment Newsletter

Growth Areas Infrastructure Contribution

As discussed in the bulletin, as well as giving effect to the change in Government policy to impose the GAIC liability on the purchasers of land (up until last Friday the GAIC was to be payable by vendors), the draft legislation contains an important transitional measure in relation to contracts of sale that have been or will be entered into between 2 December 2008 and 1 December 2009, where the transfer of land will not occur until after the commencement date of the legislation.  The transitional measure will allow the purchaser to deduct an amount equal to the GAIC liability from the purchase price payable to the vendor.

All clients who have already entered into or contracts of sale of land in the growth areas on or after 1 December 2008, or who are considering entering into contracts in the near future should carefully consider the impact of the transitional measures on their transactions.

Click here to read the Pitcher Partners Tax Bulletin containing further information on this topic.
       

Trading Stock - Treatment of Discounts, Rebates and Other Trade Incentives offered by Sellers to Buyers

Click here to read the Pitcher Partners Tax Bulletin containing further information on this topic.   

Pitcher Investment News - August/September 2009

Click here to read the Pitcher Investment Newsletter

Important Development Regarding the Taxation of Trusts

Earlier this year the Full Federal Court handed down what could be a 'landmark' decision regarding the taxation of the beneficiaries of trusts.  In Bamford's case the ATO had tried to limit the ability of the trustee of the Bamford trust to use the terms of the trust deed to determine how the beneficiaries of the trust were taxed.  The Full Federal Court rejected the arguments used by the ATO and decided that the terms of the trust deed should prevail in determining how the beneficiaries should be assessed to tax.  Both the ATO and the taxpayers are seeking special leave to appeal the decision of the Full Federal Court in the High Court.  The ATO has now released a Practice Statement ("PSLA 2009/7") outlining the ATO's compliance approaches pending the decision by the High Court. 

Please
click here to read Pitcher Partners' Tax Bulletin containing further information on this topic.   

Annual Declarations - Payroll Tax & Workcover

At this time of year employers are preparing their annual declarations for PRT and WC. It is critical that employers understand the differences between the definitions of remuneration that exist, both as between PRT and WC, and also between those obligations in each jurisdiction.  Click here to read further about Employment Taxes.

 
Stamp Duty Amendments Affect Leasing Arrangements

The amendments to the Duties Act 2000 (Vic) in relation to leasing arrangements and changes in beneficial ownership have now become law and apply with retrospective effect from 21 November 2008.  Click here to read further about these amendments.

Pitcher Investment News - June/July 2009

Click here to read the Pitcher Investment Newsletter.

Pitcher Investment News - April/May 2009

Click here to read the Pitcher Investment Newsletter.

Bad Debt Write-Offs - Watch Out For Clients Compromising Their Claims

In the current economic situation some of your clients who have advanced credit/lent money to customers will find that they are being asked if they will accept lesser sums in full satisfaction of the outstanding amounts due to them. Click here to read Pitcher Partners' Tax Bulletin discussing complications that can arise.


M E L B O U R N E S Y D N E Y P E R T H A D E L A I D E B R I S B A N E

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