The tax treatment varies according to why the compensation was paid and who the payment was made to. Compensation payments are made for a number of reasons including fee for no service, deficient advice, or overcharging for insurance premiums for death or disability insurance cover. Each one has different tax consequences. In some cases,…
Author: Jhco Admin
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Weirdest tax deductions revealed
The Lego was not the only claim for money spent on kids. Another taxpayer claimed their children’s sports equipment and sporting membership fees. Others claimed school uniforms, and before and after school care. And, others claimed, “the cost of raising twins,” the “cost of raising three children” and simply, “New born baby expensive.” Yes indeed,…
FBT and Uber style ride sharing
The ATO has confirmed its view that travel in ride sharing services is not exempt from FBT under this specific exemption as they do not meet the definition of a taxi service under the FBT laws (even though they do under GST law). However, this does not mean that FBT will necessarily apply to travel…
‘Proof of life’ certificates required for overseas pensioners
There are approximately 96,000 people permanently living overseas who currently receive an Australian social security payment. The majority of these receive the age pension. At present, the system relies on a relative to advise Services Australia that the recipient of the payment has passed away for payments to cease. Government data suggests that, “there is…
Succession or Not?
There are times where passing assets by way of your Will can be very expensive. There are a few areas within the taxation legislation that are often overlooked. For example; the transfer of superannuation to non-dependents and the passing of business assets to name two. Consider the passing of superannuation funds to a…