Unit 13: Financial transactions

Division 230 Financial arrangement – arrangements made up of rights to receive financial benefits that are monetary in nature. It generally applies to authorized deposit taking institution, such as Bank, a superannuation entity, entities meet a number of thresholds 1) aggregated turnover is 100 million or more 2) assets >300 million 3) financial assets > […]

Unit 8: Companies – Part B

Private company loans and other payments (Division 7 A ITAA 1936) Key concepts  Purpose of Division 7A (deemed dividend) – to prevent private companies from making tax-free distributions of profits to shareholders or their associates. Payments, loans and debts forgiven to shareholders or their associates will be deemed to be dividends. Any distributions of the […]

Unit 12: Consolidated entities

Entities in a consolidate group can lodge one combined consolidated account We must understand if we have a consolidated group – Tax group that can be consolidated must comprise an Australian resident head company.  It must have at least one whole owned (100%) resident subsidiary  Head company – must be an Australian resident;  Tax consolidation Residency […]

Unit 8: Companies – Part A

Company – a separate legal entity; It can enter into contracts and can be represented in the court of law. Think about taxable income; allowable deduction; derivation of the taxable income; net capital gains. Distributions received by the company; dividend, interest and royalty income; foreign income; bad debts deduction; capital allowance and capital works; blackhole […]

Unit 5: Capital expenditure

Depreciating Assets A deduction for a decline in value is only when there is a depreciating asset. A depreciating asset -An asset that has a limited effective life and can be expected to be declined in value over time. Inclusion/Exclusion The holder of the depreciating asset First element costs – costs that are incurred when […]