Changes to Trustee Resolutions

New obligations for trustees of discretionary trusts

Until recently the ATO has generally allowed trustees of discretionary trusts until 31 August to document resolutions of income distributions for the year ended 30 June

However following the decision in Colonial First State Investments v FC of T 2011 ATC 20-235, the ATO now take the strict view that trustees must resolve to distribute the current year's income on or before 30 June.

The ATO has advised that it will be running an education campaign to ensure trustees are aware of this requirement.  They have also indicated that they will be actively reviewing compliance with this requirement in future years.

Within the first few weeks of July 2012 the ATO is intending to request a significant number of trustees provide a copy of their resolution of distribution for the year ended 30 June 2012 to confirm that it was made prior to 30 June.

If the resolution is not made by 30 June the trustee may be assessed on all income of the trust and be liable for tax at the top marginal tax rate of 46.5%.

Collins Hume are keen to help you ensure you meet your obligations as a trustee.  If you are a trustee of a discretionary trust and Collins Hume client, we will be in touch with you prior to 30 June.  Meantime we invite you to call us on 02 6686 3000 if you have any questions or would like further advice in this regard.

Building and Construction Industry

New reporting requirements for businesses in the building and construction industry 
If you are a business that is primarily in the building and construction industry and make payments to contractors for building and construction services, you will be required to report these payments to the ATO from the year starting 1 July 2012.

Your first 'Taxable Payments Annual Report' will be due by 21 July 2013 for payments made in the 2012-13 financial year. 
The Taxable Payments Annual Report will require you to provide the ABN, name, address, gross amounts paid and GST included in gross amounts paid to each contractor for building and construction services. The ATO intends to use the information reported for data matching to detect those contractors who may not have included all their income or lodged tax returns. You should review your record keeping procedures now to ensure that you can readily obtain the information necessary to complete this new report from the year starting 1 July 2012. 
For more information contact Collins Hume on 02 6686 3000 or click here to see the full directive from the ATO 0412 BLOG_Taxable payments reporting.pdf. 

Collins Hume Case Study

Tardy super contribution timing costs taxpayer dearly
Taxpayer who simply 'got it wrong' ruled "ignorance of that kind is not a special circumstance" by ATO Tribunal. Collins Hume explains how to avoid it happening to you.

A recent tax case dealt with a superannuation contribution of $7,215 mailed by the taxpayer's employer on 28 June 2007 but which was not recorded as income by the fund until 5 July 2007. Unfortunately, the taxpayer ignored the amount as a contribution for the 2007/08 year and contributed another $50,000 to the fund - exceeding that year's super cap by more than $7,000. The ATO issued an Excess Contributions Assessment on the contributions above the $50,000 cap. The Tribunal held that there were no special circumstances which would allow the Commissioner or the Tribunal to allocate the amount to another year.
What can you do to prevent this from happening to you? Read more…

Social Media Competition

Top reasons to 'Like' or 'Follow' Collins Hume by 31 May 2012 to win!

Businesses are always asking us to follow them on various social networking sites, but have they ever said why?  Be informed with just some of the reasons why astute business owners should be following Collins Hume:

1. Like for up-to-the-minute news

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Be among the FIRST to know about our services, news and events and keep updated on what we're doing to help business and our surrounding community.

Like or follow Collins Hume by 31 May 2012 and be automatically entered in the draw to win your choice of either an IPad 2.0 or a Samsung Galaxy Tab 10.1. Good luck!

Sick of paying too much tax? Tired of working for the tax man? Take control and of your tax and get ahead

Dynamic, organised business owners have accountants and advisers who understand the intricacies of an increasingly complex tax system. You want someone who makes sense of the technicalities and practically applies those to your business.

Modern business demands real time, accurate financial information. Collins Hume understands that you are busy and need your tax and compliance work done efficiently and effectively without fuss. We make the process as painless as possible by relieving you and your staff of an enormous burden by managing your bookkeeping and accounting needs by preparing your annual and periodic management accounts for tax, business appraisal and planning purposes.

Tax and accounting compliance is not just about filling out forms for the' taxman'. It's about understanding how you operate, how you should be operating, and the most effective ways to fulfil your obligations.

Our experienced team pinpoints potential problems and recommends viable solutions. If you're operating multiple entities, this is particularly important. We can turn your numbers into valuable information that will assist you in being proactive and help you make the right decisions moving forward. Many accountants record history and seem to always be looking at the past. We help you look to the future and help your track your path to success.

Tax is often a major business cost, so we work in partnership with you to legally minimise it whilst helping you to achieve your business objectives. Delivering proactive, expert advice in tax minimisation and helping you make the most out of your business is our speciality.

Get on the front foot and take back control of your tax and accounting. We take a more in-depth approach with access to more resources and offer a range of additional services that add significant value to our clients. Can you afford not have the right advice? Call Collins Hume on 6686 3000 to take the stress out of your taxation and accounting needs in 2012.

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