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Email: office@aubreypaton.com.au

Address: 17D Chester Street, Oakleigh VIC 3166

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Resources to help understand and implement Single Touch Payroll (STP)
Big fines, prison on the cards as new SG penalties introduced
Extra website resources and tools is one way we offer you and your family more.
FBT Exemption for Various Work Vehicles
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Australia - facts & figures March 2019
Strategies to handle scam phone calls and problem e-mails.
Instant asset write-off threshold upped to $25k
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Correcting GST Errors
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Global outlook summary: Down but not out
Bookkeepers remind on incoming TPRS obligations
Golden Rules for Deductions
How's Australia going - vital statistics?
Tax, SMEs set to be ‘political football’ in 2019 as election nears
Cap lifted on popular financing option for clients
Expiry of 900,000 interest-only loans set for January
Australian Taxation Office (ATO) Scam Alert: Fake Demands for Tax Payments
Tax Office sounds alarm on popular property strategy
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Articles

From George and John

Merry Christmas and a Happy new Year to all our clients.
Powerful Superannuation tool on our site.
Gifts Provided to Employees at a Christmas Party – any FBT?
Reminder Tax Break Deadlines
Australian Taxation Office (ATO) Bungled Attack on Foreigners
Tax File Numbers (TFN) and Super Funds
Recognition of same-sex Couples in Super
Attitude of Banks to Insolvency
From the Desks of George and John
3 x Tax Time Checklists
Director Penalties – Workplace Relations Act
Tougher Sponsored Workers Policy
Insolvent Trading Defences
Case Study - Player Management Fee Deductions
Australian Taxation Office (ATO) Bungled Attack on Foreigners
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The recent attempt by the ATO to freeze the assets of the foreign vendor of Myer was very strange, if not stupid.

Commenter’s have called it ludicrous, incompetent and bureaucratic heavy handiness.  The details of the float of Myer were very public and were well known weeks before the bungled attempt to freeze bank accounts.  So, the ATO deserve criticism for their legal process failures.

What is more concerning is their interpretation of the law.  A profit on sale of Australian shares should not be taxable to a foreigner – since 2006 we have encouraged foreigners to invest here, so Capital Gains Tax (CGT) does not apply on shares.  This policy is similar to the practice of other OECD countries.

CGT does apply on real property sold by a foreigner and Myer sold a property in August 2007, which it should have (and presumably) declared in 2008 tax year.  That profit to the company was less than the tax being chased.  So, unless there is a new interpretation or there is something else to the transaction(s), there is no tax payable by the foreign shareholders on the float.

Even more concerning is the presumption of guilt and the assumption that TPG is not intending to lodge a tax return when it is due, and is not intending to pay any tax whatsoever!  It’s the same as labelling everyone a tax avoidance cheat, a year before they do their tax returns (just because they might!).

 

 

 

 

 



3rd-December-2009