Small Business Capital Gains Tax
|
|
- Clifford Summers
- 7 years ago
- Views:
Transcription
1 Small Business Capital Gains Tax Many small business owners find themselves nearing the point of retirement with most of their assets tied up in their business. These business owners are faced with the challenge of getting the value out of their business to help them fund their retirement expenses. In many circumstances, this means selling the business, or the business assets, to raise cash. As we know, when assets are sold, capital gains tax is usually payable. Many small business assets are likely to have been held for a significant period of time, and as such, will have grown significantly in value. This, under normal circumstances, would result in a large capital gains tax bill. The government is acutely aware that small business owners need their business assets to help them fund their retirement. So rather than taxing business owners heavily on the sale of their assets, there are special small business CGT relief rules designed to achieve this. Small business requirements To be able to use the small business CGT concessions, you must be able to satisfy specific requirements. Firstly, you must satisfy the following basic conditions: Active assets test Maximum net asset value test or the small business entity test Significant individual test if the asset being disposed of is a share in a company or an interest in a trust. Level 1, 115 Cambridge Street, West Leederville WA 6007 Phone: (08)
2 Small business basic conditions Active asset Maximum net asset value Small business entity Significant individual A CGT asset is an active asset, if at that time: you own the asset (it doesn t matter whether it is tangible or intangible), and you use it, or hold it ready for use, in the course of carrying on a business, or it is used, or held ready for use, in the course of carrying on a business by your affiliate, or by another entity that is connected with you, or if the asset is an intangible asset (e.g. goodwill or the benefit of a restrictive covenant) you own it and it is inherently connected with a business that you, your affiliate, or another entity that is connected with you carries on. The test also requires the CGT asset to be an active asset for: 7 ½ years, if owned for more than 15 years, or Half of the period of ownership if owned for 15 years or less. You satisfy the maximum net asset value test if, just before the CGT event, the sum of the following amounts does not exceed $6 million: the net value of your CGT assets, and the net value of the CGT assets of any entities connected with you, and the net value of the CGT assets of any of your affiliates or entities connected with your affiliates (not counting any assets already counted). You are a small business entity if you are carrying on a business in the current tax year and you carried on a business in the previous tax year and your aggregated turnover was less than $2,000,000, and/or your aggregated turnover in the current tax year is likely to be less than $2,000,000. You are also a small business entity for the current tax year if you are carrying on a business in the current tax year and your aggregated turnover at the end of the tax year is less than $2,000,000. Aggregated turnover includes annual turnover of any businesses that are connected with you or that are your affiliates. In order to satisfy this basic condition you need to satisfy either the $6,000,000 maximum net asset value test or the $2,000,000 small business entity test. You do not need to satisfy both tests. An entity satisfies the significant individual test as long as it has at least one significant individual just before the CGT event. An individual is a significant individual in a company or trust at a time if, at that time, the individual has a small business participation percentage in the company or trust of at least 20 per cent. As the name suggests, a significant individual must be a person, i.e. a company or a trust cannot be a significant individual. I January 2014 I Marshall Michael Pty Ltd I 2
3 Small business concessions There are four small business concessions that can apply: 15-year exemption 50 per cent reduction Retirement exemption Rollover relief If an asset qualifies for one or more of the small business concessions, the capital gain generated by the sale of the asset can be reduced, deferred or sometimes eliminated completely. 15-year exemption The 15-year exemption is the most powerful of the four concessions. This is because if the eligibility conditions are met, the whole of the capital gain can be disregarded and no capital gains tax will be payable. This is regardless of the value of the capital gain. In addition, if a company is using the 15-year CGT exemption, the exempt money can be distributed out of the company or trust tax free into the hands of specific people, namely CGT concession stakeholders. There are different requirements you need to meet depending on whether you want an individual or a company or trust to be able to obtain the exemption. Regardless of whether it is an individual or a company or trust, the basic conditions listed above must be met. The specific requirements for each entity type are discussed below. 15-year exemption Individuals You must have continuously owned the asset for the 15-year period ending just before the CGT event. Companies and trusts If the asset is a share in a company or an interest in a trust, the company or trust must have had a significant individual for a total of at least 15 years during the time which you owned the asset. There is no requirement for the 15 years to be continuous or that the significant individual is the same person over the period. If you are age 55 or over, the event occurs in connection with your retirement or you are permanently incapacitated at the time of the CGT event. A company or trust can disregard any capital gain from a CGT event if all of the conditions are met: The company or trust continuously owned the asset for the 15-year period ending just before the CGT event. The company or trust had a significant individual for a total of at least 15 years during which it owned the asset. There is no requirement for the 15 years to be continuous or that the significant individual is the same person over the period. The significant individual of the company or trust, just before the CGT event was either: Age 55 or over and the event occurs in connection with the individual s retirement; or Permanently incapacitated at the time of the CGT event. If the entity using the small business 15-year exemption is a company or trust, the exemption also becomes a mode of distributing the exempted amount out of the company or trust and into the hands of any shareholders, that are CGT concession stakeholders, tax free. I January 2014 I Marshall Michael Pty Ltd I 3
4 Do I need to contribute the money into superannuation to receive this exemption? Under the 15-year exemption, there is no need for the proceeds to be contributed to super. If you want to contribute the proceeds to super, you will need to be eligible to contribute to super based on super laws. If I choose to contribute to super, what type of contribution will it be? The contribution will be classified as a non-concessional contribution. However, a special CGT contributions cap applies to ensure that business owners are able to get money into super from the sale of their business assets. This is called the CGT cap. The CGT cap is an amount of up to $1,255,000 (indexed annually), where the proceeds are from the sale of certain small business assets: Capital proceeds from the disposal of assets that qualify for the 15-year exemption, and Capital proceeds from the disposal of assets that would have qualified for the 15-year exemption, except that: the disposal led to a capital loss or no gain the asset was a pre-cgt asset the asset was disposed of before the required 15-year holding period because the person was permanently incapacitated. 50 per cent reduction This concession provides handy relief for some small business owners. Unlike the 15-year exemption, which allows you to disregard the entire capital gain, the 50 per cent reduction only allows you to reduce the assessable amount of your capital gain. The amount of the reduction is 50 per cent. Of course, before the 50 per cent reduction can be used, the basic conditions must be met. Once the basic conditions are met, individuals and companies or trusts can simply apply this concession to reduce the assessable capital gain by 50 per cent. 50 per cent reduction Individuals The benefit to an individual is that the assessable portion of the capital gain is halved. If the individual has held the asset for greater than 12 months, the general 50 per cent CGT discount applies first Companies and trusts The benefit of this concession is that the taxpayer (i.e. the company or trust) can reduce the assessable portion of the capital gain by 50 per cent. However, the company or trust will need to find a way of distributing the reduced capital gain to a shareholder or a unit holder/beneficiary. If the individual has held the asset for greater than 12 months, the general 50 per cent CGT discount applies first Unlike the small business 15-year exemption, this concession is not, in itself, a method to distribute the discounted capital gain out of a company or trust and into the hands of the CGT concession stakeholder tax free. The company or trust will need to work out the most tax-effective way to distribute the gains. I January 2014 I Marshall Michael Pty Ltd I 4
5 January 2014 Example of the 50 per cent reduction concession: Martha owns her business in her own name. She is looking to sell her business that she owned for nine years. Martha satisfies the basic conditions and qualifies to use the small business CGT concessions. As Martha has only owned the business for nine years, she cannot access the 15-year exemption. Martha sells the business and has a capital gain of $400,000. Because she holds the asset in her own name and held it for more than 12 months, the general CGT discount applies, allowing her to reduce the gain by 50 per cent. In addition, Martha is also able to access the small business concessions so she can reduce this gain by a further 50 per cent. Gain from sale of asset $400,000 Less 50% discount as asset is held for longer than 12 months Less 50% small business reduction -50% = $200,000 Gain reduced to $200,000-50% = $100,000 Gain reduced to $100,000 Using the provisions, Martha has reduced her assessable gain from $400,000 to $100,000. This is a reduction of 75 per cent. Retirement exemption This concession can be used by an individual, a company or a trust to eliminate a capital gain on the disposal of a qualifying small business asset. Like all of the other concessions, there are specific conditions you must meet to be able to take advantage of this tax relief. This condition is similar to the 15-year exemption in that it can be used as a mode of distributing the CGT exempt amount out of a company or trust and into the hands of a CGT concession stakeholder tax free. Is retirement required? The name of this exemption is slightly misleading. This is because there is no requirement for the individual/cgt concession stakeholder to retire in order to use this exemption. This is in contrast to the 15-year exemption where an individual or a significant individual must be at least 55 years old and the CGT event must happen in connection with their retirement (or permanent incapacity). Retirement exemption Individuals If you are an individual you can choose to disregard all or part of a capital gain if: the basic conditions are met, and you are under 55 years old just before you make the choice, you must contribute the CGT exempt amount to a complying super fund or a retirement savings account, and the contribution is made by the later of when you made the choice and when you received the proceeds. I January 2014 I Marshall Michael Pty Ltd I 5
6 January 2014 Companies and trusts A company or trust can also choose to disregard all or part of a capital gain if: the basic conditions are met, and the company or trust satisfies the significant individual test, and specific company or trust conditions are satisfied. The specific company and trust conditions dictate that if the company or trust receives capital proceeds from the CGT event, the company or trust must make a payment to at least one of its CGT concession stakeholders. There are further requirements relating to this condition about when the payment has to be made, when the payment must be made to a superannuation fund and how much it can be to ensure that the concession applies. This information should be obtained from your accountant. Do I need to contribute the money into superannuation to receive this exemption? Where the small business retirement exemption is used, you only need to contribute the CGT exempt amount to super if: You are under 55 years of age just before making the choice to use this exemption; or A company or trust is making a payment of a CGT exempt amount to a CGT concession stakeholder, who is under 55 years of age just before the payment is made. If I contribute to super, what type of contribution will it be? The contribution will be classified as a non-concessional contribution. However, a special CGT contributions cap applies to ensure that business owners are able to get money into super from the sale of their business assets. This is called the CGT cap. The CGT cap is an amount of up to $1,255,000 (indexed annually), where the proceeds are from the sale of certain small business assets. Up to $500,000 of capital gains that qualify for the small business retirement exemption can be included in your lifetime CGT cap. Rollover relief Under the rollover relief, you can defer paying capital gains tax on the sale of your business asset if you are intending to buy a replacement asset. The replacement asset must be purchased within two years of the sale of the original asset. This is a complex area and is specifically tax related. An accountant has the skills and professional ability to help you with this specific tax advice. Which order should the concessions be used in? This fact sheet outlines the four small business CGT concessions that legislation provides for the disposal of active assets. small business 15-year exemption small business 50 per cent reduction I January 2014 I Marshall Michael Pty Ltd I 6
7 January 2014 small business retirement exemption, and small business rollover relief. If the small business 15-year exemption already applies to a capital gain, there is no need for any further small business CGT concessions or other CGT discounts or capital loss offsets to apply, because such a gain is entirely disregarded. If the small business 15-year exemption cannot be utilised, the order in which the concessions are used may affect the amount of tax you or your company or trust have to pay and the amount that can be contributed to super using the CGT cap. It is therefore crucial that you receive taxation advice on how the concessions should be applied. Small business CGT relief a complex area seek advice from your accountant Small business capital gains tax concessions are a complex area of legislation. It is therefore essential that you seek expert advice to ensure you meet the conditions to use them, and then apply them in the most appropriate way for your situation. All issues relating to these concessions must be confirmed with your accountant. All CGT events discussed in this financial plan are estimates only. You will need to seek specific tax advice from your accountant prior to implementing the recommendations. I January 2014 I Marshall Michael Pty Ltd I 7
Understanding Tax Version 1.0 Preparation Date: 1st July 2013
Understanding Tax Version 1.0 Preparation Date: 1st July 2013 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation
More informationGuide to capital gains tax concessions for
business small business guide NAT 8384 05.2007 SEGMENT AUDIENCE FORMAT PRODUCT ID Guide to capital gains tax concessions for small business A number of legislative changes have been made to the concessions
More informationUnderstanding tax Version 5.0
Understanding tax Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to tax. This document has been published
More informationAdvanced guide to capital gains tax concessions for small business 2013 14
Guide for small business operators Advanced guide to capital gains tax concessions for small business 2013 14 For more information visit ato.gov.au NAT 3359 06.2014 OUR COMMITMENT TO YOU We are committed
More informationAdvanced guide to capital gains tax concessions for small business 2012 13
Guide for small business operators Advanced guide to capital gains tax concessions for small business 2012 13 For more information visit ato.gov.au NAT 3359 06.2013 OUR COMMITMENT TO YOU We are committed
More informationTaxation Considerations in the Purchase and Sale of a Business. Greg Vale
Taxation Considerations in the Purchase and Sale of a Business Presented by Level 12, 111 Elizabeth Street SYDNEY NSW 2000 T: +61 2 9993 3833 F: +61 2 9993 3830 W: www.bvtaxlaw.com.au E: info@bvtaxlaw.com.au
More informationIDENTIFYING AND DEALING WITH TAXATION ISSUES 10
IDENTIFYING AND DEALING WITH TAXATION ISSUES 10 SECTION 10(A): TAX AND FAMILY DEALINGS 10 This section looks at the taxation issues that typically arise in succession planning, how these issues can be
More informationState Super retirement FuND
State Super retirement FuND Additional Information Booklet Date of Issue 20 January 2015 State Super Financial Services Australia Limited ABN 86 003 742 756 Australian Financial Services Licence No. 238430
More informationGuide to business insurance.
Guide to business insurance. 1 Important information This document has been prepared by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809, AFSL 235035 (CMLA). CommInsure is a registered
More informationSuper and Tax Advantages for the Self Employed
YOUR SUPER Freelancers, the self-employed & super. If you are self-employed or a freelance or contract worker Media Super can help you understand your super and tax options, and what you can do to maximise
More information2014/15 Key Superannuation Rates and Thresholds
2014/15 Key Superannuation Rates and Thresholds These are the key rates and thresholds that apply in relation to superannuation contributions and benefits, superannuation guarantee and co-contributions.
More informationSmart strategies for maximising retirement income 2012/13
Smart strategies for maximising retirement income 2012/13 Why you need to create a life long income Australia has one of the highest life expectancies in the world and the average retirement length has
More informationCapital gains tax treatment of earnout arrangements
Capital gains tax treatment of earnout arrangements Proposals Paper May 2010 Commonwealth of Australia 2009 ISBN 978-0-642-74607-8 This work is copyright. Apart from any use as permitted under the Copyright
More informationGuide to business insurance
Guide to business insurance Important information This document has been prepared by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809, AFSL 235035 (CMLA). CommInsure is a registered
More informationCLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf.
CLIENT FACT SHEET July 2010 Understanding superannuation and superannuation contributions Superannuation is an investment vehicle designed to assist Australians in saving for their retirement. The Government
More informationTotal current year capital gains
TEAR ALOG DOTTED LIE CGT summary worksheet or 2002 03 tax returns This worksheet is for the use of individuals (including individual partners in partnership), companies, trusts and funds. Complete only
More informationDraft Option Agreement for company share purchase following the critical illness of a shareholder
Draft Option Agreement for company share purchase following the critical illness of a shareholder This option agreement is provided in draft form for consideration by your legal advisers. They must undertake
More informationSmart strategies for maximising retirement income
Smart strategies for maximising retirement income 2010 Why you need to create a life-long income Australia has one of the highest life expectancies in the world and the average retirement length has increased
More informationInvestment Bonds Flexible, accessible and tax-effective
IOOF WealthBuilder Investment Bonds Flexible, accessible and tax-effective Presented by Graham Smith IOOF WealthBuilder Investment Specialist Disclaimer This document is for financial adviser use only
More informationSMSF Solutions for Advisers & Accountants.
SMSF Solutions for Advisers & Accountants. 1 November 2015 www.multiport.com.au Multiport Pty Ltd ABN 76 097 695 988 AFS LICENCE NO: 291195 Contents Taking the hassle out of SMSF administration and compliance
More informationKey Superannuation Rates and Thresholds
Key Superannuation Rates and Thresholds Concessional contributions cap Concessional contributions consist of: 1. Employer contributions including salary sacrifice contributions 2. Personal contributions
More information1 What is the role of a financial planner when advising a client about retirement planning?
Questions with Guided Answers by Graeme Colley 2013 Reed International Books Australia Pty Limited trading as LexisNexis. Permission to download and make copies for classroom use is granted. Reproducing
More informationSuperannuation contributions : who can contribute and when?
Superannuation contributions : who can contribute and when? The Regulations to the Superannuation Industry (Supervision) Act (1993) set out detailed rules governing who can contribute to superannuation
More informationSuperannuation. A Financial Planning Technical Guide
Superannuation A Financial Planning Technical Guide 2 Superannuation Contents Superannuation overview 4 Superannuation contributions 4 Superannuation taxation 7 Preservation 9 Beneficiary nomination 9
More informationMaking the Most of Your Super
Making the Most of Your Super For many people, super is one of the best ways to accumulate wealth. The Government provides tax benefits to encourage people to fund their own retirement. With more Australians
More informationAustChoice Super general reference guide (ACH.02)
AustChoice Super general reference guide (ACH.02) Issued: 28 May 2015 This guide contains important information not included in the AustChoice Super PDS. We recommend you read this entire guide. The information
More informationFact Sheet Tax on Super 2009/10
It pays to belong TM Key Focus A tax of 15% applies to concessional (i.e. before tax) contributions. All employer and salary sacrifice contributions will be taxed at the top marginal rate if your super
More informationFrequently asked questions about BT Super for Life
Frequently asked questions about BT Super for Life Information current as at: 1 July 2015 To be read in conjunction with the BT Super for Life PDS also found on this website. Contents Contributions caps
More informationGUIDE TO CAPITAL GAINS TAX 2002 03
GUIDE TO CAPITAL GAINS TAX 2002 03 Covers: Individuals who have sold their main residence Individuals with complex capital gains tax obligations Companies, trusts and funds Lodge online with e-tax at www.ato.gov.au
More informationSUPERANNUATION FUND RETURN PREPARATION CHECKLIST 2013
SUPERANNUATION FUND RETURN PREPARATION CHECKLIST 2013 The following checklist for super funds, prepared by Moore Stephens on behalf of CPA Australia, should be completed in conjunction with the preparation
More informationBuilding and protecting your wealth the tax effective way
Building and protecting your wealth the tax effective way Strategies guide 2014/2015 The lead up to End of Financial Year (EOFY) provides a good opportunity to review your wealth creation plans. At this
More informationINTRODUCTION TO CAPITAL GAINS TAX
INTRODUCTION TO CAPITAL GAINS TAX Ross Fiddes Consultant Whitelaw McDonald OVERVIEW For capital gains tax to apply in Australia, a CGT Event must happen to a CGT assessable Asset. The most common event
More informationSuper taxes, caps, payments, thresholds and rebates
Fact Sheet Super taxes, caps, payments, thresholds and rebates This fact sheet provides a useful one-stop reference guide to the tax rates, caps, thresholds and rebates that apply or are related to superannuation
More informationGeneral reference guide
General reference guide (TPS.01) Issued: 1 July 2015 The Portfolio Service Super Essentials The Portfolio Service Superannuation Plan The Portfolio Service Retirement Income Plan This guide contains important
More informationIndian Accounting Standard (Ind AS) 12. Income Taxes
Indian Accounting Standard (Ind AS) 12 Contents Income Taxes Paragraphs Objective Scope 1 4 Definitions 5 11 Tax base 7 11 Recognition of current tax liabilities and current tax assets 12 14 Recognition
More informationCOMMINSURE PROTECTION
COMMINSURE PROTECTION SUPPLEMENTARY COMBINED PRODUCT DISCLOSURE STATEMENT AND POLICY Issue date: 18 October 2015 This Supplementary Combined Product Disclosure Statement (SPDS) and Policy supplements the
More informationThe statements are presented in pounds sterling and have been prepared under IFRS using the historical cost convention.
Note 1 to the financial information Basis of accounting ITE Group Plc is a UK listed company and together with its subsidiary operations is hereafter referred to as the Company. The Company is required
More informationAre you ready to become part of Australia s largest superannuation pool?
Are you ready to become part of Australia s largest superannuation pool? This information is a summary based on Hayes Knight's understanding of the relevant legislation. It is general in nature and may
More informationInstruction for payment of death benefits
Instruction for payment of death benefits Group Flexible Retirement Plan/ Active Money Personal Pension/ Personal Pension/Stakeholder Pension Filling in this form 0515 Your payments aim to build up a fund
More informationHOST GLOBAL LIMITED Financial Accounts 2014-12-31
Company Registration No. 03821675 (England and Wales) ABBREVIATED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2014 CONTENTS Page Abbreviated balance sheet 1 Notes to the abbreviated accounts 2-3 ABBREVIATED
More informationProfessional Level Options Module, Paper P6 (UK) 1 Jodie
Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) June 2015 Answers 1 Jodie Paragraphs for inclusion in a letter from manager Client Jodie Prepared by Tax senior
More informationFEDERAL BUDGET 2009 SUMMARY
FEDERAL BUDGET 2009 SUMMARY 13 May 2009 As widely expected, last nightʼs Federal Budget contained a number of proposals that will affect clients. Importantly, the proposals will require passage of legislation
More informationYear-end Tax Planning Guide - 30 June 2013 BUSINESSES
Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES
More informationLife Insurance: Business Applications
Infinex Financial Group located at The Milford Bank John A. Kuehnle Financial Professional 33 Broad Street Milford, CT 06460 203-783-5782 jkuehnle@infinexgroup.com http://www.milfordbank.com Life Insurance:
More informationInsurance. Buy/sell insurance and policy ownership Due to the CGT implications for TPD and trauma insurance policy
29 Alex Koodrin, National Technical Manager CommInsure Alex joined CommInsure s technical team in January 2006. Prior to that, he was a risk and investment BDM with CommInsure for 4 years. Alex started
More informationApplication Form and Rollover Form
Super Division Application Form and Rollover Form Version 21, Issued 1 July 2016 EXCEPTIONAL BENEFITS! Only Water Corporation employees have access to our super fund. So join today and don t miss this
More informationTH6 Planning for and maximising the CGT small business concessions and audit implications
TH6 Planning for and maximising the CGT small business concessions and audit implications James McPhedran Senior Tax and Superannuation Trainer Chartered Accountants Australia and New Zealand Sharlene
More informationUnderstanding Superannuation
Understanding Superannuation Client Fact Sheet July 2012 Superannuation is an investment vehicle designed to assist Australians save for retirement. The Federal Government encourages saving through superannuation
More informationTax and Small Business: Navigating the ATO minefield as June 30 draws closer
June 23, 2015 Tax and Small Business: Navigating the ATO minefield as June 30 draws closer The small business sector has variously been described as the engine room of the economy, as well as the biggest
More information2016/17 Budget. 1. Effective Budget Night 7.30pm (AEST) 3 May 2016. 1.1 New lifetime cap for non-concessional superannuation contributions
2016/17 Budget Superannuation reform changes 1. Effective Budget Night 7.30pm (AEST) 3 May 2016 1.1 New lifetime cap for non-concessional superannuation contributions The government will introduce a $500,000
More informationContributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund.
Tax and super Issue Date: 1 July 2015 SUP E R ANNUATION The information in this document forms part of the Product Information Booklets for GESB Super and West State Super, each dated 1 July 2015. You
More informationUnderstanding Taxation Law 2012 by Gilders, Taylor, Walpole, Burton, Ciro
Understanding Taxation Law 2012 by Gilders, Taylor, Walpole, Burton, Ciro Suggested answers to Activities and Questions by John Taylor and updated by Amy Koit Chapter 13: Taxation of Shareholders 2012
More informationADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014. Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724
ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014 Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 CONTENTS Introduction... 1 Recent developments in superannuation...
More informationInternational Accounting Standard 12 Income Taxes
EC staff consolidated version as of 21 June 2012, EN IAS 12 FOR INFORMATION PURPOSES ONLY International Accounting Standard 12 Income Taxes Objective The objective of this Standard is to prescribe the
More informationEnd of financial year planning tips May 2014
End of financial year planning tips May 2014 With the end of the financial year fast approaching, it is a good time to review financial planning strategies with a view to optimising your outcomes. This
More informationSuperannuation: dealing with life s changes
Booklet 2 Superannuation: dealing with life s changes MAStech Smart technical solutions made simple Contents Introduction 01 Introduction 03 Accessing your superannuation benefits 04 Conditions of release
More informationFundamentals Level Skills Module, Paper F6 (BWA)
Answers Fundamentals Level Skills Module, aper F6 (BWA) Taxation (Botswana) December 205 Answers and Marking Scheme Section A D 9,772 + 48,930 = 68,702 2 B 47,689 + 4,800 = 52,489 3 B 5,000,000 x 5% =
More informationAll you need to know about the. Seniors Money Lifetime Loan. Information for you, your family and your advisers
All you need to know about the Seniors Money Lifetime Loan Information for you, your family and your advisers 1 Contents This brochure from Ireland s only specialist Lifetime Mortgage provider highlights
More informationProfessional Level Options Module, Paper P6 (UK) 1 Kantar. Notes for meeting
Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) December 201 Answers 1 Kantar Notes for meeting (a) (i) Inheritance tax Small gifts exemption The small gifts
More informationHow super works. MySuper. Member Booklet Supplement. 1 July 2015
Member Booklet Supplement How super works July 205 The information in this document forms part of the First State Super Member Booklets (Product Disclosure Statements) for: Employer Sponsored members dated
More informationTaxpayers Australia Inc
Taxpayers Australia Inc Superannuation Australia (A wholly owned subsidiary of Taxpayers Australia Inc) Glossary of superannuation terms These terms are commonly used in the superannuation sector. Account-based
More informationSelf Managed Super Fund (SMSF) Limited Recourse Loans
Self Managed Super Fund (SMSF) Limited Recourse Loans Memorandum Ever since the Superannuation Industry (Supervision) Act 1993 (SIS Act) was amended in late 2007, SMSF Lending has been arranging Super
More informationFinancial Planning Fundamentals
Reference Guide February 2016 Financial Planning Fundamentals This document is an information reference to be used in conjunction with your Statement of Advice, Product Disclosure Statement(s) (PDS) and
More informationRecommended for review. Understanding Business Insurance. Understanding Investment Concepts
Recommended for review o Understanding Business Insurance Understanding Investment Concepts Page 1 Understanding Business Insurance Version 1.0 Preparation Date: 1 st July 2009 This document has been published
More informationSri Lanka Accounting Standard LKAS 12. Income Taxes
Sri Lanka Accounting Standard LKAS 12 Income Taxes CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD-LKAS 12 INCOME TAXES OBJECTIVE SCOPE 1 4 DEFINITIONS 5 11 Tax base 7 11 RECOGNITION OF CURRENT TAX LIABILITIES
More informationTax deductible superannuation contributions
Tax deductible superannuation contributions TB 35 TECHNICAL SERVICES ISSUED ON 29 OCTOBER 2014 ADVISER USE ONLY VERSION 1.1 Summary Employers and certain individuals can claim a tax deduction for contributions
More informationIs your. potential? Right Strategy.
Is your SMSF working to its full potential? Right Strategy. Right Time. While managing your own super provides investment flexibility and control, the biggest challenge is ensuring the decisions you make
More informationSmall Company Limited. Abbreviated Accounts. 31 December 2007
Registered number 123456 Small Company Limited Abbreviated Accounts 31 December 2007 Abbreviated Balance Sheet as at 31 December 2007 Notes 2007 2006 Fixed assets Intangible assets 2 Tangible assets 3
More informationEffective Tax Management for Investment Portfolios
Effective Tax Management for Investment Portfolios Tax management in investment portfolios for Australia s private wealth holders. Matching Investments to their Holding Structures March 2013 Private Portfolio
More informationSOLE TRADERS 2015 year end information and checklist In brief
Vision, understanding and results SOLE TRADERS 2015 year end information and checklist In brief Date 7:30pm AEST 12 May 2015 Pre 30 June 2015 Changes and actions Small businesses with a turnover below
More informationThe following abbreviations and acronyms are used throughout this explanatory memorandum.
Glossary The following abbreviations and acronyms are used throughout this explanatory memorandum. Abbreviation Definition ADI Authorised Deposit-taking Institution CGT Capital gains tax ITAA 1997 Income
More informationSmart strategies for your super
Smart strategies for your super 2010 Make your super count Superannuation is still one of the best ways to accumulate wealth and save for your retirement. The main reason, of course, is the favourable
More informationInternational Accounting Standard 12 Income Taxes. Objective. Scope. Definitions IAS 12
International Accounting Standard 12 Income Taxes Objective The objective of this Standard is to prescribe the accounting treatment for income taxes. The principal issue in accounting for income taxes
More informationSUPERANNUATION. Home Insurance. Super fundamentals. Foundations for your future
SUPERANNUATION Home Insurance Super fundamentals Foundations for your future As one of your most important financial investments, it s worth understanding how superannuation works. For many Australians,
More informationFunding income protection and trauma insurance via superannuation
TB 40 Funding income protection and trauma insurance via Issued on 16 June 2014. Summary The tax concessions available for certain contributions can make it tax effective to fund income protection (salary
More informationAustralian tax booklet for International (US-domiciled) ishares ETFs
Australian tax booklet for International (US-domiciled) ishares ETFs 1. Introduction 1.1 The Australian Tax Booklet for International ishares Funds ( Booklet ) provides a general summary of the main Australian
More informationActuaries Institute Submission
29 May 2015 Tax White Paper Task Force The Treasury Langton Crescent PARKES ACT 2600 Email: bettertax@treasury.gov.au Dear Sir/Madam Actuaries Institute Submission The Actuaries Institute welcomes the
More informationSuperannuation Product Disclosure Statement effective 1 January 2016
Superannuation Pensions Insurance Financial Advice Superannuation Product Disclosure Statement effective 1 January 2016 Contents About us 2 How super works 3 Benefits of investing with us 3 Risks of super
More information2012 DUET Annual Tax Statement Guide:
2012 DUET Annual Tax Statement Guide: Essential information to help you complete your 2012 Australian income tax return 2012 DUET Group Annual Tax Statement Guide 1 DISCLAIMER None of the entities noted
More informationAGL - Alinta Transaction: Class Ruling
AGL - Alinta Transaction: Class Ruling 27 December 2006 AGL Energy Limited (AGL) advises that the Australian Taxation Office (ATO) has finalised and issued Class Ruling CR 2006/125 and associated Shareholder
More informationEnd of Financial Year Strategies 2014. Aaron Steer AFP Senior Financial Planner
End of Financial Year Strategies 2014 Aaron Steer AFP Senior Financial Planner Disclaimer In preparing this information, Statewide Wealth did not take into account the investment objectives, financial
More informationEmployee Stock Ownership Plans ("ESOPs") Michael J. Canan, Shareholder GrayRobinson, P.A. Orlando
Employee Stock Ownership Plans ("ESOPs") Michael J. Canan, Shareholder GrayRobinson, P.A. Orlando In appropriate situations, ESOPs can be extremely effective tools for transferring ownership interests
More informationPotential saving ( 286,000 221,040) 64,960
Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) June 2012 Answers 1 Una (a) To The files From Tax senior Date 15 June 2012 Subject Una Gifts to son and granddaughter
More informationThe purchase of the Aquapower business corporation tax liabilities NewCo Ltd purchases the business Epon Ltd Wahzah Ltd Yoko Ltd NewCo Ltd
Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) June 013 Answers 1 Epon Ltd group To The files From Tax senior Date 7 June 013 Subject The purchase of the Aquapower
More informationTopics. AMA Private Health Insurance Comparison 2016 Budget Breakdown Top Ten Tax Tips for 2016. AMA Private Health Insurance Comparison
Prime Time Advisory News Update May 2016 Newsletter Topics AMA Private Health Insurance Comparison 2016 Budget Breakdown Top Ten Tax Tips for 2016 AMA Private Health Insurance Comparison Recent price increases
More informationRetirement Income Allocated Pension
Retirement Income Allocated Pension Information sheet S U P E R A N N U AT I O N This information sheet is intended to provide an overview of the key features and benefits of the Retirement Income Allocated
More informationInvestment bonds. Summary. Who may benefit from an investment bond? TB 33
TB 33 Investment bonds Issued on 1 July 2013. Summary There are a wide range of investments to choose from in today s market. One option is an investment bond which is a life insurance policy purchased
More informationNAS 09 NEPAL ACCOUNTING STANDARDS ON INCOME TAXES
NAS 09 NEPAL ACCOUNTING STANDARDS ON INCOME TAXES CONTENTS Paragraphs OBJECTIVE SCOPE 1-4 DEFINITIONS 5-11 Tax Base 7-11 RECOGNITION OF CURRENT TAX LIABILITIES AND CURRENT TAX ASSETS 12-14 RECOGNITION
More informationTaxation treatment of exchange traded futures
Taxation treatment of exchange traded futures 20 May 2010 Alison Noble, Principal, Deloitte Touche Tohmatsu Ltd Christopher Neil, Analyst, Deloitte Touche Tohmatsu Ltd The views in this document are those
More informationIntroduction to Property Development
Introduction to Property Development Taxation, accounting and structuring issues impact on every stage of a development. While these issues are often pushed to the side or considered a boring aspect of
More informationGLOBAL GUIDE TO M&A TAX
Quality tax advice, globally GLOBAL GUIDE TO M&A TAX 2013 EDITION www.taxand.com CYPRUS Cyprus From a Buyer s Perspective 1. What are the main differences among acquisitions made through a share deal versus
More informationPersonal investors guide to capital gains tax 2013
Guide for investors Personal investors guide to capital gains tax 2013 To help you complete your tax return for 1 July 2012 30 June 2013 Covers: n sale of shares n sale of units in managed funds n distributions
More informationRetirement Pearls of Wisdom. Wealth for Women from ANZ Financial Planning
Retirement Pearls of Wisdom Wealth for Women from ANZ Financial Planning Pearls Of Wisdom Women s wealth Women are extraordinary. For the past few decades women have been able to earn increasingly higher
More informationMyNorth helps you confidently reach your financial goals
MyNorth helps you confidently reach your financial goals MyNorth helps you confidently... Reach your goals with your financial adviser Diversify with a wide range of term deposits, managed funds and shares
More informationEmployee and Business Angel Shareholdings. Avoiding Income Tax Issues
Employee and Business Angel Shareholdings Avoiding Income Tax Issues Employee and Business Angel Shareholdings Introduction Private companies, particularly those in a start-up or early stage development
More informationFundamentals of Australian Taxation. Snehal Shah Director GMK Partners Pty Ltd
Fundamentals of Australian Taxation Snehal Shah Director GMK Partners Pty Ltd Disclaimer This presentation is of a general nature only and is not intended to be relied upon as, nor to be a substitute for,
More informationC.1 Taxation of equity-based payments
C Taxation C.1 Taxation of equity-based payments Australian taxation arrangements Equity-based payments are remuneration for employment services provided in the form of equity or rights (this could constitute
More information2008-2009 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES
2008-2009 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES EXPOSURE DRAFT: TAX LAWS AMENDMENT (2009 BUDGET MEASURES No. 2) BILL 2009 EXPOSURE DRAFT: INCOME TAX (TFN WITHHOLDING
More informationCorporation tax ( 329,080 x 26%) 85,561
Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) December 2012 Answers 1 Flame plc group (a) Report to the Group Finance Director of Flame plc (i) Flame plc sale
More informationYear-end Tax Planning Guide - 30 June 2014 BUSINESSES
Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES
More information