GST On Sale of Goodwill

James Murphy Tax

A query relating to GST on sale of goodwill… Client A has a business of IT/Software consulting/licence sales…and currently owes software Supplier B $180,000 for licences sold to customers. Supplier B has decided to cease providing licences to Client A and has offered $180,000 in compensation…and suggested that Client A keep the $180,000 rather than pay Supplier B. Is the …

Private Company Ceasing Operation

James Murphy Tax

Australian private company is wholly owned by an overseas company (only shareholder is the overseas company – 100% ordinary shares). This Australian private company will be ceasing the operation in December. The business got a loss, so there is no need to pay company tax. This company wants to lodge the company tax return in January / February and deregister the …

Costs as a Tax Deduction?

James Murphy Tax

We have a client who employed a new worker from Queensland to work in her Outback Hotel. The client paid the costs for the flight ticket and hotel isolation. Can our client claim these costs as a tax deduction? Answer The employee can’t claim a deduction for removal or relocation costs incurred to transfer or relocate for work purposes. This …

Trust Distribution of Discount Capital Gain

James Murphy Tax

Could you advise on the information to be provided in the Trust tax return for a non-resident individual who will receive a discount capital gain from property sold in Australia by a resident Trust? And what forms, if any,  are required to pay any Australian tax liability, how the tax calculation is determined and who is required to prepare, pay, …

Benefits That Attract FBT

James Murphy Tax

We are a charity registered with ACNC and income tax-exempt. Would you advise which of the following benefits would attract FBT? Gym membership Community service day off or well-being day off Employer funded paid parental/maternity leave Flu vaccinations Rostered days off Higher super contribution by employer Paid health cover or contribution to health cover Car parking Concessional leave Christmas lunch …

LSL to cover Sick Leave

James Murphy Tax

Question: I have a staff member who has been employed for nine years as of May this year. He has no personal leave. Can he use his long service leave entitlements to cover his sick leave? He was away for surgery for five days. Answer If workers require more time off work than they have accrued in personal leave, they …

Super member investment

James Murphy Tax

Question: This question is about my client. They belong to the APSS superannuation fund with a member saving account and defined benefits. The trustee has decided to change strategy and next year 2022 and merge with Sun Super. Will the change and the merger impact member investments as their savings are invested in conservative investment options and are 68 years …

Sale of Shares

James Murphy Tax

Question: Could I have your thoughts/comments on my client’s position? He has sold all his shares to another Company that will assume the running of the business in which he and 2 others were the operators/employees/directors. They have also sold all their shares, like my client. My client’s shares sold [600,000 units] were acquired [for $900] upon incorporation some 10 …

Transfer of Livestock on Cessation of a Partnership

James Murphy Tax

Question: Just requiring verification of transfer of livestock on Cessation of a Partnership, 4 Partners in equal shares.  The livestock is transferred to 2 Sons in equal shares, and they will trade individually going forward. Can I use the election and transfer the livestock at book value, i.e.  3661 Sheep at $21966?  Also, can you please very the correct Notice …

GST on Land Sale

James Murphy Tax

Question: The client is getting old and wants to sell the land they own. It is approx. 30 acres on the edge of town. They are not registered for GST, and no business has been carried on, on the land. Meaning not having any cows, etc., on the land. They have owned the land for several decades. Do they have …