Perks Chartered Accountants Alert August 2010

Welcome to the August edition of Perks' Tax Alert - delivering to you the latest tax developments affecting you and your business.

Tax Office Sets Compliance Focus Areas for 2010/11
The Tax Office has released its compliance program for 2010/11.

ATO is Contacting Participants in Collapsed Agribusiness MIS
A number of participants of recently collapsed Agribusiness MISs may soon be contacted by the ATO.

GST and Requirements for Tax Invoices
The GST regulations which previously specified the requirements for documents to be tax invoices has been removed.

Reportable Employer Superannuation Contributions Definition: Changes Proposed
The Government has proposed to clarify the definition of RESCs.

Minimum Pension Drawdown Amounts — 50% Reduction to Continue
The 50% reduction in the required minimum payment amounts that must be made from account-based, allocated and market-linked pensions will be extended another year.

Division 7A Benchmark Interest Rate
The Tax Office has announced the Div 7A benchmark interest rate for the income year that commenced 1 July 2010.

Trust’s Unrealised Gains Can Be Treated as Income
In a recent case, the NSW Court of Appeal has confirmed that it was permissible for a trust, in terms of its trust deed and accepted accounting principles, to treat unrealised gains made on share investments as income of the trust.

ATO Sends Warning to SMSFs Regarding Employee Share Schemes
The Tax Office has issued a Taxpayer Alert on arrangements involving employee share schemes.

Reasonable Travel and Meal Allowance Amounts
The Commissioner has determined the amounts considered reasonable for travel and meal allowances for the 2010/11 income year.

Superannuation and Instalment Warrant Rule Changes
The superannuation law has been amended to reduce the risks for super funds investing in instalment warrants.

Cooper Super Review Makes 177 Recommendations
The Government has released the long-anticipated final report of the Super System Review.

For further tax advice and to find out if and how these tax developments may specifically affect you, contact your Perks relationship manager.

This Tax Alert was compiled by Perks' Tax Consulting Specialists. For more information on these articles, contact Brian Nimmo or Neil Oakes.

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