Print Newsletter

December 2003

Recent presentations given by Mark Jackson, Deputy Commissioner of Taxation Superannuation, highlighted some of the shortcomings in superannuation fund record keeping.

They include:

• The lack of clearly documented investment strategies which reflect fund investments.
• Minutes of meetings.  Minutes should document changes in the investment strategy, acceptance of contributions and payment of benefits and where practical should be documented at the time of the meeting.
• Assets not held in the name of the fund or its trustee.  Where this is not possible e.g. land, then a 'Deed of Trust' should be created to recognise this as a fund asset.

Please keep the above in mind when preparing transactions during the year.

Recent case law has highlighted the risk for company officers of unremitted amounts of withholding tax, such as PAYG amounts withheld from employee payments (formerly known as group tax).  Any director of a company who holds office during a time where amounts of withholding tax are un-remitted can be exposed to personal liability.

The ATO are increasing their focus on international transactions.  As part of this they will be undertaking further analysis of certain transactions.  This work involves risk identification, analysis and further action where necessary.

Initially the strategy will involve sending out questionnaires over the next three months to a range of taxpayers they have identified as having transactions with certain jurisdictions.

If your business has international transactions, please contact our office for guidance on your compliance obligations.

"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it" Ronald Wilson Reagan, 40th US President.

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