4th Quarter 2022

As part of the broader package of updated guidance targeting trusts and trust distributions, the Australian Taxation Office (ATO) has also released a draft determination dealing specifically with unpaid distributions owed by trusts to corporate beneficiaries. If the amount owed by the trust is deemed to be a loan, then it can potentially fall within the scope of another integrity provision in the tax law, Division 7A.

The Treasurer has announced that PCR and rapid antigen tests (RAT) will be tax deductible for individuals and exempt from fringe benefits tax (FBT) for employers if purchased for work purposes. The changes for deductions will be effective from 1 July 2021, with the FBT changes to apply from 1 April 2021.

The Australian Taxation Office (ATO) has provided a fact sheet covering the tax implications of employers providing incentives and rewards to their employees in connection with receiving the Covid-19 vaccine and/or booster doses.

The Australian Taxation Office (ATO) has recently issued an alert on gifts or loans from overseas. The ATO is particularly concerned about schemes and arrangements designed specifically to circumvent Australian tax laws. In general, Australian-resident taxpayers need to declare their worldwide income in their Australian tax return. Some schemes however disguise offshore capital gains or income as a gift or loan.