ASIC penalties ‘the cost of doing business’

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The Australian Securities and Investment Commission (ASIC) is set to increase penalties for corporate and financial sector misconduct to deter the fines being seen as the cost of doing business.

The impact of the proposed changes would be to expand the range of civil penalty provisions and to increase maximum civil penalty amounts in the Corporations Act 2001 and National Consumer Credit Protection Act 2009 (Credit Act) to:

  • for individuals, 2,500 penalty units ($525,000); and
  • for corporations, the greater of: 12,500 penalty units ...
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How small subsidiaries are being caught by Australia’s new multinational tax crackdown

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Entities with a global parent or that are part of a large group of companies are being caught in the multinational tax crackdown regardless of their size in Australia.

With effect from 1 July 2016, many smaller entities connected to a larger parent or group are now only grappling with the changes prior to the lodgement of the 2016-17 tax returns.

A series of laws targeting multinationals came into effect from 1 July 2016 to ensure that tax is paid on economic ...

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New legislation restricts access to the reduced company tax rate

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Legislation restricting access to the small business company tax rate reduction entered Parliament last month. The changes specifically preclude companies with passive investments such as rental property income from qualifying for the small business entity tax rate of 27.5%.

For the 2017 income year a company could access the reduced company tax rate if it was carrying on a business and it had an aggregated turnover of less than $10 million. The changes replace the ‘carrying on a business test’ with ...

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Cleaners and couriers the latest black economy target

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The detail of the Government’s crackdown on cleaning and courier companies was revealed late last month.

From 1 July 2018, the taxable payments reporting system will extend beyond the building industry to cleaning and courier businesses. This means that these businesses will need to report payments they make to contractors (individual and total for the year) to the ATO. By ‘payment’ the ATO means any form of consideration including non-cash benefits and constructive payments.

The building industry has had this form of ...

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Taxing Bitcoin

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Cryptocurrencies, like Bitcoin, are independent and not regulated by any central authority. Until recently, these digital currencies were not treated in the same way as cash for tax purposes in Australia. New legislation passed by Parliament last month seeks to change all of that by removing GST from currency exchanges.

 

How are cryptocurrencies taxed?

Under GST law, a 10% GST applies to supplies of goods and services. Money receives special treatment because it’s a medium of exchange and not something for final ...

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Marketing and Social media in the digital age

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The Team at JH & Co have always strived to meet the needs of our clients when it comes to accounting and business management. We help clients adapt as the business world changes. In recent times, as a digital marketing presence becomes more and more necessary, we have realised this is an additional way we can support business.

Many of our clients have mentioned concerns as social media and digital marketing become more mainstream and we realise that in regional areas, ...

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Tax benefits for investing in affordable housing

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In the 2017-18 Federal Budget the Government announced a series of measures intended to improve housing affordability in Australia.  To entice investors, the Government is providing an increase in the CGT discount for individuals who choose to invest in affordable housing.

The draft legislation enabling this change has now been released so we can see the detail.

There are two aspects to these changes. Firstly, individuals who make a capital gain on residential dwellings that have been used to provide affordable housing ...

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Alert: What you need to tell the ATO about your SMSF

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The 1 July 2017 superannuation reforms introduced a new reporting regime for funds. Funds now need to advise the ATO of key events within the fund that impact on retirement income streams (pensions):

  • When you start a pension
  • When you stop a pension or take a lump sum
  • When the fund accepts a structured settlement contribution such as personal injury compensation.

Superannuation funds are also required to report the value of existing superannuation income streams at 30 June 2017.

While reporting of these events to ...

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Safe harbour for directors of struggling companies

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Australia’s insolvent trading laws impose harsh penalties on directors of companies that trade where there are reasonable grounds to suspect that the company is insolvent. Criminal and civil penalties can apply personally including penalties of up to $200,000, compensation proceedings by creditors or liquidators, and where dishonesty has been involved, up to 5 years in prison.

You can understand why directors might choose to place a company into administration rather than face personal risk. Section 588G(2) of the Corporations Act imposes ...

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Fatboy’s Cheese Steaks The mobile food van that is really going places!

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When Antony Hocking of Shepparton  of Shepparton added – Tony started to look for a small restaurant or café to get started in his first small business, nothing seemed to pop up. Antony believed it all seemed too expensive for the returns.

In his searching and investigations Antony finally saw a food truck business that looked interesting, but after much negotiation Antony thought he could do better and opted to build his very own food van from the ground up and ...

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