Discussion Paper on Tax Regime Overhaul Released
Australian Treasurer Joe Hockey has published Re:think, a discussion paper that marks the launch of the long-awaited Tax White Paper process.
The discussion paper begins a formal government process for considering future directions for Australia’s tax system. The paper provides information about the challenges the system faces, identifies potential opportunities for reform and points to some of the “trade-offs” that would need to be considered. The Government is seeking feedback on whether the current tax system can be refined or whether it requires more fundamental change, and where fairness can be improved. The discussion paper asks how important it is to reform taxes to boost economic growth, and to what extent reducing complexity should be a priority.
NZ Launches Tax Modernization Program
New Zealand’s Revenue Minister, Todd McClay released two documents on 31 March 2015 setting out the nation’s plans to modernize and simplify the tax system. The first document, Making Tax Simpler – a Government green paper on tax administration, aims to inform New Zealand taxpayers of the proposed initiatives and seeks feedback on the options. The second document, Better Digital Services, outlines proposals to expand the tax authority’s use of online systems that would enable faster, more accurate, more convenient interactions with the Inland Revenue Department (IRD).
International Women’s Day Breakfast
On March 8 is International Women’s Day and to celebrate, Walker Wayland NSW took a small group of clients to attend the Business Chicks Sydney International Women’s Day Breakfast. We have a large group of strong women in our client base and events such as these are a great way to bring them together to interact in a room full of like minded women.
Simplified Transfer Pricing Record Keeping
The ATO has introduced an online Simplified Transfer Pricing Record Keeping options guide which provides relief from preparing full transfer pricing documentation for perceived low risk taxpayers. This was introduced in recognition of the fact that compliance with the requirements of Subdivision 284-E imposed administrative burden that would be disproportionate to the taxpayers non compliance risk. Where a taxpayer is eligible and opts to rely on a simplified option, it will not need to prepare documentation in accordance with Subdivision 284-E. In general the Simplified Transfer Pricing Record Keeping options are available for taxpayers that meet one of the following criteria:
ATO initiative: “Project DO IT”
The ATO initiative known as “Project DO IT: disclose offshore income today” is an amnesty which allows eligible taxpayers to come forward and voluntarily disclose unreported foreign income and assets.
The Commissioner of Taxation has urged taxpayers with offshore assets to declare their interests ahead of a global crackdown on people using international tax havens.
Six months from a shell to ASX listing
When Singapore-based venture capital firm 8Capita spotted an opportunity in cloud-based software services, it called on Walker Wayland NSW to assist with its plans.
The 8Capita team explained that they wanted to set up an Australian company that would buy an Australian software developer. The new company would then add a compatible product from a Canadian developer that an 8Capita subsidiary already owned. The company would then list on the Australian stock exchange. The project was to be completed in just six months.
Walker Wayland NSW Appoints Chairman
The partners of Walker Wayland NSW wish to announce that Stephen Roger has changed his role from managing partner to consultant effective July 1, 2014.
In conjunction with this change, the partners welcome the appointment of Scott Arnold as the firm’s inaugural chairman effective July 1, 2014.
Proposed removal of GST-free concession on the supply of a going concern
Although the Federal Government recently announced that it will be removing the current GST free concession on the supply of going concerns and replacing it with a ‘reverse charge’ mechanism, no date has been set for the commencement of the change. However, draft legislation is due to be released by mid 2014, with a bill expected before Parliament by the end of the year.
Federal Budget 2014-15
The Federal Treasurer, Mr Joe Hockey handed down the 2014-15 Federal Budget, his keenly awaited first budget, on 13 May 2013 at 7.30pm (AEST). Anticipation was high that significant changes would be announced following the recent release of the National Commission of Audit report and the Government did indeed release its formal response to the Commission’s report.
However, in the event, the Budget was relatively “light on” from a taxation point of view. Although, it did include the expected 2% budget deficit levy and the re-indexation of fuel excise, tax measures were relatively few. Progress on announced but un-enacted measures was however noted.
The much debated 2% budget deficit levy (tax) was a key announcement and the levy will apply from 1 July 2014. However it will apply only on taxable income above $180,000 per annum and it will last for only 3 years i.e. for the 2014-15, 2015-16 and 2016-17 years.
The budget did contain a significant range of welfare benefit changes including the freezing of certain eligibility thresholds. It is projected savings from the welfare measures will run into billions of dollars and form a substantial part of the Government’s debt/deficit reduction drive.
Government makes decision on outstanding superannuation measures
Government makes decision on outstanding superannuation measures
The Abbott government has stated that it is keen to keep regulation of superannuation to a minimum, and has agreed to proceed with only four of the 16 taxation and superannuation proposals made by the previous government.