Table of contents Day 1 Tax Schools 2008

Transcription

1 Contents Topic Loading NTAA software Installation configuration Using the Software Salary Sacrifice The baby bonus calculator Page No. a b c c d CHANGES TO THE 2008 I RETURN...1 Introduction Recording Employment Termination Payments ( ETPs ) under new reforms new Item What is an employment termination payment? Tax treatment of employment termination payments under the new rules from 1 July Roll-over restrictions apply to employment termination payments under the new rules from 1 July Death benefit employment termination payments What documentation should an employee receive in relation to an employment termination payment? How to record employment termination payments in 2008 under the new rules new Item Recording lump sum superannuation benefits under new reforms new Item Tax treatment of lump sum benefits paid to a member during member s lifetime from 1 July Tax treatment of lump sum benefits paid on the death of a member from 1 July What documentation should an individual receive in relation to a lump sum superannuation benefit? How to record lump sum superannuation benefits in 2008 under the new rules new Item Recording superannuation pension benefits under new reforms new Item Tax treatment of pension benefits paid to a member during their lifetime from 1 July Tax treatment of pension benefits paid after the death of a member from 1 July National Tax & Accountants Association Ltd: May June 2008 i

2 3.3 What documentation should an individual receive in relation to a superannuation pension benefit? How to record superannuation pension benefits in 2008 under the new rules new Item Claiming personal super contributions under new reforms new Item D New eligibility requirements from 1 July The $50,000 limit for deductible contributions $100,000 transitional limit for people aged 50 or more Claiming a deduction for personal contributions in 2008 new Item D New information requirements for dependant tax offsets claimed in 2008 Item T What tax offsets can be claimed at Item T1 for 2008? What are the new Claim Type codes for Item T1? Forestry managed investment schemes new return form obligations for Claiming deductions for FMIS contributions Item D Declaring income in relation to an FMIS Item Recording capital gains for an FMIS interest Item OTHER NEW DEVELOPMENTS FOR Superannuation co-contribution scheme the latest developments New eligibility requirements from 1 July New co-contribution thresholds for Partners who make undeducted contributions eligibility for co-contribution Beneficiaries of a trust who make undeducted contributions eligibility for co-contribution Maximising the co-contribution for employees Should self-employed individuals give up a tax deduction in return for the co-contribution?...46 The new First Home Savers Account Key features of the First Home Savers Account What is the new FHSA? Who is eligible to open a new FHSA? Contribution arrangements for the new FHSA...49 ii National Tax & Accountants Association Ltd: May June 2008

3 4. What tax concessions are available for an FHSA? Making withdrawals from an FHSA Examples illustrating benefits of the FHSA initiative...52 Tax refund for education expenses...53 Key features of proposed education tax refund...53 Wesfarmers takeover of the Coles Group new ATO guidelines for shareholders...55 Key features of the Wesfarmers takeover offer for Coles shareholders...55 The tax consequences for Coles shareholders Disposal of Coles shares to Wesfarmers Acquisition of Wesfarmers shares and WPP shares Availability of scrip for scrip roll-over relief on disposal of a Coles share under the Wesfarmers takeover Reclassification of WPP shares into ordinary shares...63 Investors who hold Telstra 3 instalment receipts new ATO guidelines...64 Key features of Telstra 3 instalment receipts...64 The income tax consequences of T3 instalment receipts dividends payments...65 CGT consequences of T3 instalment receipts original and new investors The CGT consequences for T3 original investors The CGT consequences for T3 new investors...71 Identifying similar businesses under non-commercial loss rules new ATO guidelines...74 Grouping similar business activities in applying the NCL rules...74 ATO S INDIVIDUAL AUDIT HOT SPOTS FOR New ATO benchmarks for industry and trades addressing the cash economy New ATO benchmarks for different trades Occupations and claims that will be targeted by the ATO work-related expenses Employee travel agents and consultants Fitness and sporting industry employees Construction industry employees...95 National Tax & Accountants Association Ltd: May June 2008 iii

4 3. Common traps with car expense claims under Division 28 the four methods Claiming car expenses for a car that is registered in another taxpayer s name Cars used for multiple income-earning activities Car expense claims for an employer provided car Employer reimbursements of employee car expenses Car expense claims for partnership cars hidden trap Common audit problems with leased cars Deductibility of lease payments dependant on lease being bona fide for tax purposes Claiming deductions under a one-year lease The hidden trap with lease shortfall amounts The deductibility of up-front balloon payments Other ATO individual audit hot spots for LATEST CASES FOR INDIVIDUALS Expenses in negotiating new employment contracts deductible for AFL/NRL players Facts in Spriggs case Federal Court s decision in Spriggs case NTAA comment implications of decisions Legal expenses deductible in defending employment-related charges Facts of the case Federal Court s decision single judge Full Federal Court s decision NTAA comment implications of decision Employee checklist deductions for legal fees Self-education expenses not deductible against full-time employment income Facts of the case Tribunal s decision NTAA comment iv National Tax & Accountants Association Ltd: May June 2008

5 Newly constructed dwelling not used as main residence by taxpayer The facts of the case The Tribunal s decision whether dwelling was the taxpayer s main residence NTAA comment Implications of decision ADVANCED TAX-EFFECTIVE PLANNING FOR INDIVIDUALS Introduction How to accumulate a tax-effective retirement nest egg under the new super reforms Salary packaging into superannuation huge savings! How to supplement an employee s reduced salary by drawing down a tax-free non-commutable pension How do tax-free benefits under the new super reforms affect claims to tax concessions or entitlements? Maximising the use of the contributions caps under the new super reforms The $50,000 limit for concessional contributions The $150,000 limit for non-concessional contributions Maximising use of contribution caps for employees Maximising use of contribution caps for self-employed Strategies on maximising the tax benefits of owning a rental property Maximising tax benefit of losses from a jointly owned rental property salary packaging joint expenses Jointly owned family home becomes rental property buying spouse s interest in existing home How to salary package a car and double dip on car expenses car provided to associate Car benefit provided to employee s associate claiming car expense deductions for associate Moving into a newly built/renovated dwelling how to minimise or avoid paying CGT Extending main residence exemption applying the 4-year construction rule under S Making the right choice to apply 4-year construction rule planning for the new and existing home National Tax & Accountants Association Ltd: May June 2008 v

6 6. Spouses with different dwellings minimising or eliminating CGT How to apply the main residence exemption to spouses with separate main residences How to make the right choice for spouses with separate main residences planning opportunities! EMPLOYEE SHARE PLANS A HANDS ON GUIDE When do the ESAS rules in Division 13A apply? When the ESAS taxing rules do not apply exclusions Tax consequences of the ESAS rules applying to shares or rights an overview The tax consequences for qualifying shares or rights acquired under an ESAS What is a qualifying share under an ESAS? What is a qualifying right under an ESAS? Applying the ESAS taxing rules and the CGT rules to qualifying shares or rights Planning with qualifying shares or rights whether or not to make a S.139E election or to defer discount Tax consequences for non-qualifying shares or rights acquired under an ESAS What is a non-qualifying share or right? Applying the ESAS taxing rules and the CGT rules to non-qualifying shares or rights The market value of ESAS shares or rights Recent developments under the ESAS rules Roll-over relief for corporate takeovers or restructures ESAS rules extended to stapled securities Cross-border ESAS shares or rights non-residents and employees who work overseas Temporary residents with ESAS shares or rights How to deal with or advise clients who have ESAS shares or rights precedent letter ESAS flowcharts summary of the rules Notes vi National Tax & Accountants Association Ltd: May June 2008