Tax Offences Articles
Tax Law - Tax Evasion and Money Laundering - Queensland Arrest
Date: May 15, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Sometimes the wider community thinks the Australian Taxation Office has gone soft on tax evasion and money laundering which could not be further from the truth. On 26 April 2012 the Australian Federal Police and the ATO published a joint media release indicating that a 67 year old man had been arrested and more than $40M of assets had been restrained under the Commonwealth Proceeds of Crime legislation.
Tax Law - CGT - Application of CGT for Non-Residents
Date: March 27, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Australian residents are able to enjoy benefits afforded to them solely because they are registered Commonwealth citizens. All applications for residency are meticulously assessed by the ATO utilising a variety of tests to determine whether an entity(ies) can be treated as a resident for taxation purposes.
Tax Law - Promoter penalty laws(Part 5)
Date: February 22, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
This final part of this article deals with miscellaneous issues arising in relation to promoter penalty laws, particularly criminal law consequences of these laws.
Tax Law - Promoter penalty laws(Part 4)
Date: February 22, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
Part 3 of this article dealt with the actions that may be taken against promoters of tax exploitation schemes (TESs), and looked briefly against the ability of the promoter to enter a voluntary undertaking instead of being punished. This part of the article deals with the civil penalties and statutory injunctions that may be imposed as remedies against promoters.
Tax Law - Tax Evasion - Tax planning
Date: February 22, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
It goes without saying, tax evasion is the biggest threat to the Commonwealth’s largest revenue stream. Suffice to say the ATO continuously revamps and improves its strategies year after year to address the problem. While the number of tax offenders has dwindled since the implementation of new tax system (ANTS) there continues to be a large number of entities who fail to comply with their tax and superannuation obligations.
Tax Law - Cash Economy
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In November 1996 Michael Carmody, the former Commissioner of Taxation established the Cash Economy Taskforce to address the Commonwealth’s escalating problems regarding businesses that participate in the cash or underground economy. While the ATO has had programmes in the past to address this problem, the Commissioner found it necessary to create a project that would specialise in the matter. The Taskforce aims to refine strategies and continue those that have been successful in mitigating and pursuing participants of the cash economy to rid the Commonwealth of the problem.
Tax Law - Compliance Programme 2011 - 2012 Fiscal Year (Part 3)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The collection and recovery of tax debts has proved challenging for the ATO in the last financial year. Declining economic conditions coupled with natural disasters have made tax and superannuation compliance hard for everyone. That said, some taxpayers have resorted to cheating the taxation system but as the year progressed, the ATO was able to address some of these problems.
Tax Law - Compliance Programme 2011-2012 Fiscal Year(Part 2)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The collection and recovery of tax debts has proved challenging for the ATO in the last financial year. Declining economic conditions coupled with natural disasters have made tax and superannuation compliance hard for everyone. That said, some taxpayers have resorted to cheating the taxation system but as the year progressed, the ATO was able to address some of these problems.
Tax Law - Financial Year 2010-2011 - Offences, convictions, recovered amounts and sentencing
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The ATO has become more vigilant and has adopted a far more sophisticated approach to pursue individuals and companies who not comply with their tax-related obligations. The 2010-2011 financial year has lead to a large number of tax-related convictions and superannuation offences.
Tax Law - Project Wickenby - Prosecutions and Amount Recovered (Part 1)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In 2006 the Australian Government funded Project Wickenby, a cross-agency task force in an effort to fight and prevent the participation in and promotion of abusive international tax schemes through the use of tax or secrecy havens. The government provided a total of $430.9M to fund the project until 2013. While the amount for the project is quite hefty, the “investment” made by way of Australian taxpayer dollars has yielded very promising results.
Tax Law - Project Wickenby - Prosecutions and Amount Recovered (Part 2)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
More than half of the revenue collected by Project Wickenby came from voluntary disclosures. The majority of the remaining amounts ($276M) was collected through prosecutions and court judgments. As of the date of this writing, 62 individuals have been charged with serious offences under Project Wickenby.
Tax Law - Tax Havens
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The mere fact that a taxpayer has overseas assets, income and bank accounts is not illegal. Similarly the use of a tax haven for a legitimate business enterprise or other purpose is not illegal provided there is transparency with respect to these overseas dealings and no attempt is made to hide an/or conceal the true nature of what is occurring.
Tax Law - Debt Recovery - False or misleading statements(Part 2 of 4)
Date: January 17, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
This article deals with the ATO’s power to impose and increase administrative penalties upon unpaid tax debts, in situations where the taxpayer has made a false or misleading statement.
Tax Law - Debt Recovery - False or misleading statements(Part 3 of 4)
Date: January 17, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
This article deals with the ATO’s power to impose and increase administrative penalties upon unpaid tax debts, in situations where the taxpayer has made a false or misleading statement. This part of the article deals with “recklessness.”
Tax Law - Debt Recovery - False or misleading statements(part 4 of 4)
Date: January 17, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
This article deals with the ATO’s power to impose and increase administrative penalties upon unpaid tax debts, in situations where the taxpayer has made a false or misleading statement. This part of the article deals with “intentional disregard”.
Tax Law - Large business entities(Part 3)
Date: January 17, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
The ATO does not treat large business entities with the same anonymity as other taxpayers, since there are relatively few of them and they contribute a disproportionate amount to revenues. This article deals with the special rules developed by the ATO to deal with, and engage with, large businesses.
Tax Law - Promoter penalty laws(Part 1)
Date: January 17, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
The ATO is desirous of maximising returns upon monies spent on tax enforcement. Thus, it can often make sense to target entities which promote tax avoidance and evasion schemes to multiple taxpayers. Targeting such entities can save the revenue from multiple acts of tax avoidance/evasion.
Tax Law - Promoter penalty laws(Part 2)
Date: January 17, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
Part 1 of this article dealt with identifying the promoter entity for the purposes of the promoter penalty laws. This part of the article deals with difficulties relating to identifying the promoter of a scheme, in the case of different forms of entity, arrangement and structure.
Tax Law - Promoter penalty laws(Part 3)
Date: January 17, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
This part of this article on the promoter penalty regime covers the actions that may be taken against promoters who are liable for penalties.
Tax Law - Demergers - Demerger Tests
Date: January 07, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
A complicated and often misunderstood area of tax law is the CGT and dividend tax relief available in respect of demergers. A demerger occurs when a group of entities (basically, companies or fixed trusts) divides itself into multiple entities or groups in a certain way.
Tax Law - Demergers - relief for interest holders of the head entity
Date: January 07, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
A complicated and often misunderstood area of tax law is the CGT and dividend tax relief available in respect of demergers. A demerger occurs when a group of entities (basically, companies or fixed trusts) divides itself into multiple entities or groups in a certain way.
Tax Law - Demergers - Relief for the members of the original demerger group
Date: January 07, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
A complicated and often misunderstood area of tax law is the CGT and dividend tax relief available in respect of demergers. A demerger occurs when a group of entities (basically, companies or fixed trusts) divides itself into multiple entities or groups in a certain way.
Tax Law - Unfair preference payment claims against the ATO
Date: January 07, 2012
Author(s): Jonathan Lim B.A., LL.B. (Hons)
This article deals with a little-known form of action that may be taken against the ATO by a liquidator – namely, an unfair preference payment claim against the ATO itself.
Tax Law - Cash Economy - Data Matching - Privacy - Pursuing Tax Offenders
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The government founded the Australian Taxation Office for one primary reason: to collect taxes and tax-related liabilities. The ATO has the responsibility to ensure that every taxpayer pays the correct amount of tax and excise under the law. That said, the ATO has been given power to pursue individuals and entities who are not complying with their tax-related responsibilities including those who provide false information.
Tax Law - Cash Economy Letters Program - Results
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Putting a stop to businesses that operate in the cash economy could be as simple as informing them that they are indeed operating illegally. That said, the ATO has carried out a project to reduce the risk induced from businesses participating in underground economy called cash economy letters program.
Tax Law - Defining the Cash Economy
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The cash economy is often referred to as “black”, “hidden”, or “underground” economy. The essence of the cash economy is when business transactions go unrecorded or unreported to the ATO. Hence, they gain an unfair advantage over other businesses which choose to comply with the requirements of the ATO by deliberately evading their tax-related obligations.
Tax Law - The Cash Economy - Detection
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The ATO has pursued tax offenders, especially businesses that participate in the cash or underground economy. In 2010, the government has given the ATO an extra $445 million over the next four years in order to crackdown on the cash economy and GST(goods and services tax) compliance and is expected to gain over $3.2 billion in lost revenue over that period.
Tax Law - Cash Economy - Small Business Benchmarks
Date: November 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Business benchmarks allow the ATO, as well as corporate entities to compare the performance of a business to another business in the same industry. In doing so, the ATO is able to discern the different turnover ranges for businesses in an industry. That said, discrepancies from business to business will shed light on which businesses are participating in cash economy or not. As of this writing, the ATO has developed benchmarks for more than 100 industries.
Tax Law - Cash Economy - Voluntary Disclosure - Remission of Penalties and Charges
Date: November 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
A voluntary disclosure can involve an entity informing the ATO about a false or misleading statement they made without being prompted or persuaded to do so. It has inherent advantages, one of which is a reduction in penalties and interest. Voluntary Disclosure is an area which is really misunderstood by most tax lawyers or accountants including the role of a Prudential Auditor. Most professionals go about it the wrong way and rarely achieve a good result.
Tax Law - Companies - Company Tax Debt and Recovery
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Company tax debts come into existence in a number of ways. Normally they are the function of the incapacity to pay for any of a number of reasons. In all such cases company directors assume personal liability where nothing is done to address the company’s taxation debt particularly after a director’s penalty notice has been served on them and the 21 day grace period has expired without action.
Tax Law - Debt Recovery - Freezing Assets and Mareva Injunctions
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The power to freeze assets is an integral part of minimising the risk to the revenue when dealing with assets where a taxpayer attempts to frustrate the tax office recovering the amount of any tax debt. It provides the Commissioner of Taxation with a tool to prevent a debtor from evading tax-related liabilities by dealing with assets in such a way as to frustrate the execution of a judgment. Freezing assets allows the ATO to minimise this risk.
Tax Law - Debt Recovery - Overpayments
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In the normal course of things taxpayers account to the tax office for tax monies to satisfy their tax related liabilities. But there are instances in which a person may receive money from the ATO which is in excess of their entitlements to a refund or otherwise. Where this occurs the monies received fall under Section 8AAZN of the TAA 1953 as an administrative overpayment.
Tax Law - Tax Debts - Restrictions on Overseas Travel
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner of Taxation has the power to stop tax debtors from leaving Australia if they have unpaid tax liabilities or have not provided a suitable arrangement to address the debt by placing them on airport watch. This applies to both Australian and foreign nationals who are liable to pay taxes to the ATO unless a deportation order under the Deportation Act 1958 is issued by the Commonwealth.
Tax Law - Companies - Late Payments - Directors Penalty Notices (DPN)
Date: November 14, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
As of recent times we have been approached by a number of taxpayers who are experiencing difficulties in meeting their tax and BAS obligations. It is apparent that the ATO has a much lower threshold of tolerance where BAS obligations are not met on time they are now insisting on 50% of the outstanding balance due when a payment arrangement is being negotiated.
Tax Law - Failure to Lodge (FTL) Penalty - Exemptions and Remissions of the Failure to Lodge (FTL) Penalty
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner of Taxation may remit an entity's FTL penalty on the grounds that is fair and reasonable to do so if the entity is able to show and prove how a specific event(s) have directly resulted in the taxpayers inability to lodge the documents on time. One matter which the Commissioner will take into consideration when considering to grant a remission is whether the entity has a good compliance history.
Tax Law - Failure to Lodge (FTL) Penalty - Provisions and Factors for the application of the Failure to Lodge (FTL) Penalty
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Even in the fast-paced world we live in today, every person who derives income, whether through employment or business, from Australia is obliged by the ATO to comply with all of their tax-related requirements on time and in its approved form. Should a taxpayer fail to lodge tax returns, statements, notices or any other document the ATO requires from a taxpayer, then they will most likely be charged with the FTL (failure to lodge) penalty.
Tax Law - Tax Assessments - Guidelines for Disputing a Tax Debt
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
A taxpayer can prepare the objection themselves or have it prepared by an authorised person on their behalf (e.g. tax lawyer or tax agent provided that they have been given written authority (a signed declaration by the taxpayer certifying the details and documents provided are true) to do so.
Tax Law - Tax Assessments - Lodging an objection
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The raising of assessments by the ATO on a person or company are not absolute. There are instances where an assessment made by the ATO is unjustified. That said, taxpayers who are dissatisfied with their tax assessments and other decisions made by ATO have the right to object to some of them to ensure that any action taken to collect taxes and other tax related liabilities are in accordance with legislation.
Tax Law - Tax Debt - Disputed Debts - Legal Action
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The ATO believes that the longer a tax debt remains in dispute the harder it is to recover. Disputed debt will normally increase due to the application of penalties and interest as long as the debt remains outstanding or a suitable payment arrangement has not been made by the debtor.
Tax Law - Tax Debts - Irrecoverable Debts
Date: October 24, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
The ATO can sometimes seem to have boundless energy when pursuing tax debts. However, it is important for taxpayers to be aware of the situations when even the ATO will give up the chase.
Tax Law - Tax Debts - Personal Liabilities of Directors for Company Tax Debts
Date: October 24, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
In most situations where a company has a tax debt, the Commissioner of Taxation and the ATO will respect the “corporate veil” and not touch the assets or money of the individual directors or shareholders.
Tax Law - Tax Debts - Writs and Warrants of Execution
Date: October 24, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
A writ or warrant of execution (hereafter “warrant”) is issued by a court to authorise its sheriff or bailiff to seize assets of the judgment debtor and sell it to pay the judgment debt amount.
Tax Law - General Interest Charge or GIC
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
The ATO has several means of discouraging the late payment of tax liabilities. Of these, the most basic and universally applied is the general interest charge (GIC).
Tax Law - Tax Debts - Bankruptcy and Liquidation Factors
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
In our companion articles Tax debt recovery: bankruptcy and Tax debt recovery: liquidation, we already discussed the basics of when the Commissioner will impose these harsh measures. However, an important issue for a taxpayer who is subject to these measures is what factors the Commissioner takes, or should take, into account when deciding to impose them.
Tax Law - Tax Debts - Company Arrangements in Lieu of Liquidation
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
As may be seen in our companion articles Tax debt recovery: liquidation and Tax debt recovery: bankruptcy and liquidation factors, the Commissioner of Taxation will only seek liquidation of a debtor company in extreme circumstances. This article deals with ATO policy when choosing to enter a deed of company arrangement with a debtor company, as an alternative to imposing liquidation.
Tax Law - Tax Debts - Compromise of Tax Debts
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
If the Commissioner accepts an application from a tax debtor to compromise their tax debt, then the Commonwealth will accept a payment that is lower than the full tax debt. Applying for a compromise is often the first thing a tax debtor will think of if an outstanding tax debt cannot be paid. However, as will be seen, it is not a very desirable solution.
Tax Law - Tax Debts - Indemnity Requests upon Liquidation or Bankruptcy
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
When a tax debtor is subject to bankruptcy or liquidation, either a trustee or liquidator will take over the taxpayer’s assets and undertake to pay the debts of the taxpayer as best as possible. These debts include debts to the ATO as well as other debts. The trustee or liquidator will often find itself in a situation where a certain action, such as litigation, will result in more funds being available to pay creditors.
Tax Law - Tax Debts - Liquidation
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
When the ATO and Commissioner of Taxation decide to impose measures upon a company taxpayer with a tax debt, the most extreme sanction available is that of liquidation. As can be imagined, this harsh measure is not imposed lightly.
Tax Law - Tax Debts - Paying by Installments
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
The ATO expects taxpayers to pay taxes when they fall due. Ordinarily this puts the onus on the taxpayer to ensure that their cash flow is always adequate to their tax related responsibilities.
Tax Law - Tax Debts - The ATO can Bankrupt you
Date: October 19, 2011
Author(s): Jonathan Lim B.A., LL.B. (Hons)
There are many ways in which the ATO and the Commissioner of Taxation can impose sanctions upon individual taxpayers who are late in paying tax liabilities. Of these, the most severe sanction is that of bankruptcy under the Bankruptcy Act 1966 (Cth).
Tax Law - Tax Debts - Installment Arrangements
Date: October 17, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Unfortunately there are circumstances that arise which impede a taxpayer’s ability to pay taxes. It could be said that in tough times like the present this is one of those times. As the saying goes “the only things that are certain in life are death and taxes”. Where finances are short there are some options which need to be considered.
Tax Law - Tax Debts - The role of the ATO in Recovering Tax Debts
Date: October 17, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Tax revenue is the biggest revenue stream for most countries. It is what funds roads, highways and bridges for trade and travel, it funds schools, hospitals and other institutions in service of the public; it is what finances the majority of the arenas, courts, stadiums or recreational centres; it makes relief efforts possible and delivers relief to those stricken by disaster.
Tax Law - Tax Debts - The value of security
Date: October 17, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Security is the most effective way for an entity to prove to the ATO that the taxpayer has the financial capacity to pay the debt owed. The existence of securities allows the ATO to hold the debtor’s asset to effectively recover the debt.
Tax Law - Debt Recovery
Date: October 12, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over the last several months there has been a significant increase in the number of taxpayers who have approached us with respect to either actual or threatened debt recovery proceedings from the ATO. In a number of these cases the ATO is threatening to make taxpayers bankrupt or wind up their companies where they have been tax non-compliant over a period of time.
Tax Law - The ATO and Debt Recovery
Date: October 12, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The current economic environment has meant that there are a number of people and/or businesses who are suffering financially. There is much commentary about the existence of a two-speed economy in Australia as we saw with GFC 1 and now with GFC 2. There will be an increase in the number of taxpayers whether company or individual who will be unable to meet their ongoing obligations.
Tax Law - Trusts - Bamfords Case - Part 2
Date: August 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
It is well-settled proposition in trust law that trust deeds can define what income is, provided there is an adequate definition of income and the trustee has the discretion to determine what is or is not income allowing the trustee to include in income what might otherwise not be income, such as capital gains in Bamford.
Tax Law - Trusts - Bamfords Case - Part 1
Date: August 08, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Bamford’s case has settled how the definition of “income” in trust deeds is to be construed. Prior to this case there was a raging controversy as to whether the proportional or quantum approach was to be applied.
Tax Law - Foreign Exchange Losses (Forex Losses)
Date: August 05, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In all taxation matters where clients have funds deposited overseas with a foreign bank account there can be issues where there are foreign exchange gains or losses. Many taxpayers who hold offshore funds need to be careful about how they manage these funds as foreign exchange gains and losses may or may not be deductible.
Tax Law - Money Laundering
Date: August 05, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Money laundering is considered by all organs of the government to be hard-core criminal activity which must be rigidly controlled. It is regulated under the Anti-Money Laundering & Counter Terrorism Financing Act 2006 (Cwlth) (AMLF) which became effective in December 2006 and criminalised under others. The Cwlth Government wishes to ensure that businesses and/or individuals do not engage in money laundering.
Taxation Law - Overseas Dealings
Date: March 13, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Often clients want to use their accountant to lend legitimacy to their taxation affairs and to deny any knowledge of overseas dealings, interests or assets as they say their adviser filled out their return and answered questions about overseas interests, assets and holdings as "No". From that point on they have lost credibility.
Taxation Law - Promoters
Date: March 13, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Although promoters are the Tax Office's principal targets they are after any taxpayer who has used offshore bank accounts, credit and debit cards, offshore financial products and/or structures to conceal income or assets from them.
Taxation Law - Tax Havens
Date: March 13, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Tax havens enable tax evaders to conceal their assets and income offshore from scrutiny. They are readily identifiable from their lack of transparency and effective information exchange. Secrecy means that tax administrations operate on the basis that the taxpayer proves the bona fides of any arrangement/ scheme.
Taxation Law - Offshore Funds and Structures
Date: February 20, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Often bogus/fabricated documents are relied upon by taxpayers to defend overseas interests/structures and locally claimed deductions. Why would anyone in their right mind enter into a multi million dollar contract for overseas IT consultancy, for example, in the Cook Islands, a tax haven, given that they are not known as a supplier of IT consultancy services like India.
Taxation Law - Have You Received A Letter From The Australian Tax Office
Date: February 18, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Australian Taxation office (Tax Office) is increasing its focus on Australian residents who may have undisclosed offshore income or over claimed deductions involving international transactions.
Taxation Law - Offshore Non-Complying Arrangements
Date: February 12, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation Law - Tax Havens and Non-Compliance
Date: February 11, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over recent years the Tax office has tightened up considerably on overseas arrangements and schemes which have been used to either secrete assets or hide income. Normally the success of these arrangements relies upon concealment using any of a number of structures to prevent detection including the use of tax havens.
Taxation Law - Arrangements to Avoid Australian Tax - Could This Be You?
Date: November 18, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Whenever a taxpayer is involved in aggressive tax planning they need to ensure that they stay on the right side of the law. Essentially there is a great difference between tax avoidance and tax evasion. The first is lawful and the latter is unlawful with the consequence that can lead to criminal prosecution and a custodial sentence.
Taxation Law - Failing to Furnish Income Tax Returns - Part 1
Date: November 01, 2007
Author(s): LAC Lawyers
The failure to submit Income Tax Returns as and when required by the commissioner of taxation is an offence under section 8C(1)(a) of the Taxation Administration Act 1953.
Taxation Law - Failing to Furnish Income Tax Returns - Part 2
Date: November 01, 2007
Author(s): LAC Lawyers
Whilst it is conceded and supported that Income Tax Offences are serious matters and are far from trivial, there may be objective facts and mitigating circumstances which would warrant the non-recording of a conviction as provided for in section 19B.
Taxation Law - Taxation Settlements
Date: September 11, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation law and practice is a highly complex area of the law. For any number of reasons individual or corporate taxpayers may find themselves in dispute with the ATO. In order to provide some certainty as to how a taxation dispute may be dealt with the ATO follows a Code of Settlement Practice.
Taxation Law - Some Criminal Consequences of Tax Evasion
Date: September 09, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Although the majority of taxpayers abide by their obligations there are a number who don't. A range of penalties and sanctions which can be brought to bear including civil, administrative and criminal. Many people think if you don't pay your tax and ignore the problem it will go away, which couldn't be further from the truth.
Taxation Law - Major ATO Targets For 2007/2008 Tax Year
Date: September 04, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner of Taxation has recently released his 2007/08 Compliance Programme. As with every compliance programme the emphasis shifts and this year the ATO's goals are about "being fair and professional; applying the rule of law; supporting taxpayers who want to do the right thing; and being consulted, collaborative and willing to co-design."
Taxation Law - Voluntary Disclosure
Date: August 15, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Currently the Glen Wheatley case is colouring everyone's perception of the Australian tax landscape. Obviously the decision is not understood by the press which has influenced many taxpayers' perceptions on the desirability of making a voluntary disclosure.
Taxation Law - The Glen Wheatley Case - The Value Of Coming Forward - Was It An Unprompted Voluntary Disclosure?
Date: July 31, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
For some time now the papers have been full of the Glen Wheatley case, and the following types of comments have been made by a number of commentators.
Taxation Law - Negotiation
Date: May 22, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Negotiation is an art not a science. Often clients forget this and do not really understand the process. Butterworths Australian Legal Dictionary defines negotiation as "generally, mutual discussion and arrangements of the terms of a transaction or agreement."
Taxation Law - Goods and Services Tax
Date: May 01, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
As everyone understands there are a number of Commonwealth Government taxes. The major ones are CGT, FBT, ICT, GST, LCT and PAYG (earn/withholding). At this stage this paper will only deal with GST legislation. The main piece of GST legislation is a new tax system (Goods and Services Tax Act 1999) which came into operation on 1 July 2000 and is payable only on supplies and importations made on or after that date.
Taxation Law - Tax Evasion - How Do The Criminal Courts Treat Tax Evaders
Date: October 11, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The most serious case in this area was handed down by the New South Wales Court of Criminal Appeal in R. v Ida Ronen, Nitzen Roden and Izhar Ronen on the 19th April 2006. The message which the courts delivered in this case is that they will treat all cases of serial tax evasion as extremely serious leading to long periods of imprisonment irrespective of the taxpayer’s individual circumstances even where taxpayers have paid their penalty tax in full.
Taxation Law - Extensions of the Time for Lodging Applications for Review of the Taxation decisions at the Administrative Appeals Tribunal
Date: September 14, 2006
Author(s): LAC Lawyers
Section 29 (2) of the Administrative Appeals Tribunal Act 1975 (Cth.) states that the general rule is that an application for review of a decision made by the Deputy Commissioner of Taxation must be made to the Administrative Appeals Tribunal ("AAT") within 60 days after the day upon which the person is notified of the reviewable decision.
Taxation Law - Appeals to the Federal Court
Date: May 25, 2006
Author(s): LAC Lawyers
Appeals to the Federal Court require a written application which sets out brief details of the objection decision and must be filed with the relevant Federal Court Registry.
Taxation Law - Taking Action (AAT & STCT)
Date: May 25, 2006
Author(s): LAC Lawyers
Taxation Law - Changes to Private Rulings
Date: May 23, 2006
Author(s): LAC Lawyers