To have a company car or not to?

Posted On: Thursday, June 02, 2016

Question:

I am a director of a Company and the Company provides me a car for personal use as part of my salary package. Am I and the Company better off with this arrangement or just receiving additional salary and buying my own car? Which way will cost the company less? Which way will be better for me personally?

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Salary Sacrifice exempt from FBT Question

Posted On: Thursday, May 26, 2016

 

Question

We have an employee we have just established in Australia on a sponsored visa which cost us approx $12K

He has always wanted to pay some of this amount back to us. The visa is finalised and he wishes to pay $40.00 per week.

I do not want to start FBT for the company, so can this, in any way, be a salary sacrifice exempt from FBT please.

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Divorce Payment from SMSF Question

Posted On: Thursday, May 19, 2016

 

Question

I would like some information regarding divorce payment from SMSF for a client.

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Uber GST Question

Posted On: Friday, May 13, 2016

 

Question

I caught my first Uber ride today for business. Fare was only $12.00 and Uber won't issue a tax invoice, as it was less than $82.50; however, no ABN was listed on the receipt. Can I claim GST without knowing whether or not the driver has an ABN?

Given that the ATO has made it very clear that drivers need to be registered for GST, this seems like a reasonable basis upon which to conclude that GST was included in the fare. All articles I found on the internet relate to the driver's perspective, not the businesses that may utilise the service.

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CGT Tax Question

Posted On: Monday, May 09, 2016

 

Question

I have a question regarding CGT Tax. A person is a permanent resident of Australia and spent half of his year in Australia and another half in Hong Kong. He has an apartment in Australia and also has another apartment in Hong Kong. As he is very old already and not working anymore (he retired), he is thinking of selling that apartment in Hong Kong. Does the selling of his apartment attract a CGT? He never uses both apartments as an income producing assets.

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Option Fee on Sale Question

Posted On: Tuesday, May 03, 2016

 

Question 

Our Company was the owner of a property for 10 years. A developer put an option to purchase the property two years ago. We received an option fee from the buyer and the property was settled this year. The option fee did not form part of the purchase price. We wish to know how the ATO treats the option was received, is it income, capital gains or something else?

 

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Offset Capital Gains Tax Question

Posted On: Thursday, April 28, 2016

 

Question 

I operate a medium size business and have decided to sell a dozen items of equipment at a public auction in March 2016.

The auction company has assessed the total value of the equipment and agreed to pay me $485,000 + GST up front.

Under the agreement, if the package of equipment sells for a greater amount, they get to keep the first $100,000 (as commission) with an 80% (to me) 20% (to them) + GST for any amount over $585,000. If it sells for less, we still keep the amount already paid.

Currently, we have no idea as to what values the auction company has allotted to each item of equipment, but I guess this will become clearer once the auction has been held.

Even so, as we didn’t have a set amount for each item at the time of their payment, can we legally manipulate the payment to best off set capital gains and losses to our benefit?

I ask, because at the time of the agreement we had no idea as to what we were paid for each item of equipment, how best do we allocate the values of each item, (other than our current book value), to minimise any tax payable, be it CGT or normal business tax?

I have also sold another item of plant for $27,000.00 and it has been depreciated down on our books to $92,300.00. The value has declined due to updated software to run it.

If we had depreciated the item at a higher percentage, we would have paid less annual tax.

My question is therefore, is there any way we can offset Capital Gains Tax to offset our ongoing yearly business tax obligations?

 

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Consignment Sales Question

Posted On: Wednesday, April 20, 2016

 

Question 

My question is regarding Consignment Sales. Our business is registered for GST, however, some of our clients are and some aren’t. Could you please provide the equation for remitting GST with regards to commission on sales? How do we calculate the remittance payable to our client when we are registered for GST and they are not?

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Tax Benefit to reduce Capital Gains Question

Posted On: Tuesday, April 12, 2016

 

Question

In 2001 we purchased 109 acres near the coast and built our family home. My husband and I have been running cattle on the property since we purchased it. In 2004 and 2007 we sold a portion of the land to our family trust and subsequently developed that area into residential lots.

In 2011 we sold another portion of land to a different family trust and developed further lots. In the next year or two we will be selling another portion of the farm to a family trust that we own so it can be developed.

My husband is 68 and I am 56. In June this year, we will have owned the farm for 15 years. Due to our age and the time we have owned the farm, are there any tax benefits we can claim to reduce the capital gains tax on the sale?

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Tradie Business Expense Question

Posted On: Tuesday, April 05, 2016

 

Question

I have been told that a Tradie’s business can claim water they purchase as an expense to their business, is that correct?

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