Tax treatment of foreign income earned by the Australian Residents

Posted by Team AVS on 7 Nov, 2017 0 Comments

Under Australia’s taxation regime, resident taxpayers are subject to income tax on both incomes derived in Australia and on foreign sourced income. As a general rule, where foreign income is derived by an Australian resident, the gross amount (including any foreign tax paid on the income) must be included as assessable income.

Understanding limited recourse borrowing arrangements

Posted by Team AVS on 30 Oct, 2017 0 Comments

A self-managed superannuation fund (SMSF), generally speaking, is not able to borrow to acquire assets. The rationale is that superannuation is meant to be a relatively conservative investment vehicle, and borrowing can put the fund at risk.

An example of this risk at work was seen during the global financial crisis (GFC) through margin lending schemes where people borrowed money to invest in shares. When the GFC hit, people not only lost th

ATO can increase(or reduce) its penalties

Posted by Team AVS on 24 Oct, 2017 2 Comments

Any voluntary disclosure that is made by a taxpayer before being told that an audit is to be conducted will reduce the base penalty amount by 80% if the shortfall is greater than $1,000 or is a scheme shortfall amount or to nil if the shortfall is less than $1,000.

The taxpayer will generally be taken to have made an honest mistake unless there is information to indicate that the taxpayer did not make an honest mistake. The voluntary disclosure must be made in writing, be signed with the appropriate taxpayer or agent declaration and posted to the ATO.

Implications of Company Franking Credits

Posted by Team AVS on 16 Oct, 2017 0 Comments

The recent cut to the tax rate for incorporated businesses that turnover less than $50 million a year, while generally welcomed, can bring with it some important considerations when it comes to distributing franked dividends.

The rate change to 27.5% is to be staggered, starting with companies that turnover up to $10 million a year, with retrospective effect from July 1, 2016. It will then apply to companies turning over up to $25 million in 2

Claiming start-up costs for Immediate deductions

Posted by Team AVS on 11 Oct, 2017 0 Comments

Before July 1, 2015, relevant business capital expenditure, including start-up expenses, was deductible under the auspices of this five-year deduction entitlement housed under a section of the capital allowances rules. However, after that date, certain start-up expenses for businesses, including costs associated with raising capital, that would otherwise have been deductible over five years, can be immediately deductible. These include professional expenses associated with starting a new business, such as professional, legal and accounting advice

Keeping your SMSF compliant while you are travelling

Posted by Team AVS on 3 Oct, 2017 0 Comments

Are you an SMSF trustee who loves to travel? Sounds like a great lifestyle, however, while planning your summer break you need to be aware that there can be negative consequences if you are out of the country for too long.

If you are a trustee and you relocate overseas for an extended period, the residency status of the SMSF, its compliance status and its ability to receive tax concessions may be affected.

Prevent your SMSF becoming non-com

Renting out your home – Part or All

Posted by Team AVS on 25 Sep, 2017 0 Comments

Generally, if you rent out part or all of your home, the rent money you receive is assessable. This means that you must declare your rental income in your income tax return, but you can also claim deductions for any associated expenses.

However, be warned. If you rent out part of your home, such as one room, you also may not be entitled to the full main residence exemption from capital gains tax (CGT). This means you will be required to pay CG

Does your SMSF need a valuation?

Posted by Team AVS on 15 Sep, 2017 0 Comments

The rules around the valuation of assets held under an SMSF have seen a lot of changes over the years. The requirement to consider valuing SMSF assets at market value when preparing the annual financial statements of the fund was one of the most significant and controversial of these changes.

The use of market value accounting for financial statements is regarded as a good practice but was not imposed on SMSF trustees as a legal requirement.

Do you need to lodge your tax return early?

Posted by Team AVS on 7 Sep, 2017 0 Comments

If you are a resident of Australia for tax purposes, returns lodged before the end of the financial year will be accepted if you are leaving Australia, will cease to be a resident of Australia for tax purposes, and you won’t be deriving any Australian sourced income (excluding interest, dividends and royalty income). The same applies to those who are already not a resident for tax purposes.

Correcting GST errors and making adjustments on your business activity statements

Posted by Team AVS on 31 Aug, 2017 0 Comments

If you identify a goods and services tax (GST) error for a previous period or on an already lodged business activity statement (BAS), there is always scope to make a correction.

The ATO has realised that it is necessary for businesses to be able to make these adjustments, which can easily come about because of a change of circumstances or facts.

“Team at AVS Business Services helped us set up our SMSF and put the correct structure in place for acquisition of real properties in our SMSF. AVS has exceeded our expectations and their specialist team has provided valuable support throughout the process of buying properties in our SMSF. We highly recommend their services. “

G.D Singh & Dr Jaskirat Singh SMSF Trustees

"We've utilised the services of AVS Business Services for a few years now and can honestly say the team of AVS have always provided excellent service on a personal and business level. Nothing is too much trouble and they're readily available to assist at the drop of a hat. Their service sets them apart from previous accountants worked with. We would definitely recommend their service to anyone looking for an accountant.”

Aaron & Linda Henry A.B Henry Pty Ltd

"AVS Business Services have been looking after our SMSF and our family’s tax affairs for a number of years. Their experience, professionalism and knowledge is of the highest order.Their personalized service and depth of understanding in setting up and managing a SMSF is excellent. They are also happy to go out of their way to assist in every way no matter how small it is."

We would be happy to recommend their services.

Glenn & Andrea Bouche SMSF Trustees

Being a layman with Tax and Accounting and new to Australia, I was looking for a professional and efficient tax accountant who can also help me understand the tax structure here and show some avenues to save money.I was recommended to AVS through my friend and it was no looking back since then.Team at AVS are diligent tax professionals with an eye to detail. They spend time in understanding the requirements and needs of clients, ensuring it aligns with all the legal aspects.I am very pleased working with AVS and would recommend to anyone who is looking for professional, efficient and personalized tax accounting services.

Som Mukherjee IT Professional - Project Manager - Banking and Finance

AVS Business Services have been our tax advisers and accountants for more than 3 years now. We have a great working relationship and constantly receive industry updates and useful information for our business. I would recommend AVS to any one as I feel they provide a very professional, timely and accurate service. They are well versed in Tax and superannuation legislation and support all of our business needs. They are a pleasure to deal with and we are sure that we are always dealing with advisers who understand business very well.

Justin Wilson CEO, J.W.W Trading Pty Ltd