Tax Legislation
Section of legislation that discloses the list of general deductions.
What is Section 8-1 ITAA1997?
An irregular expense payment that is less than $300.
What is the minor, infrequent and irregular exemption?
Thanks RBA - This rate was 4.77% but has increased to 8.27% as at 1 July 2023.
What is the benchmark interest rate?
This is an agreement between Australia and other countries that aim to prevent double taxation, fiscal evasion, and assist each countries tax authorities in enforcing their respective tax laws.
What is the DTA?
A scheme, or arrangement for the dominant purpose of obtaining a tax benefit.
What is PartIVA?
Where an employer reimburses an employee for motor vehicle costs.
What is an expense payment fringe benefit?
This is a document that must be in writing before the relevant tax return is lodged or due to be lodged, and the principal and interest be over 7 or 25 years, depending on security.
What is a compliant loan agreement?
An offset that provides relief from paying double tax on your foreign and worldwide income.
What is the foreign income tax offset?
The year that the Fringe Benefits Tax Assessment Act was established - Respect your elder's Taylor Swift (only by a few years).
What is 1986?
This is a vehicle that has a designed load capacity of more than one tonne, and are not designed for the principal purpose of carrying passengers - Sorry tradies those VW Amarok's won't cut it!
What is an exempt car benefit?
Net assets + Div 7A amounts − Non-commercial loans − Paid-up share value − Repayments of non-commercial loans.
What is distributable surplus?
A document that shows for a specific period, an entity is;
- An Australian resident for tax purposes,
- Not a temporary resident,
- Liable to pay tax on worldwide income in Australia
What is a certificate of residency?
This section is the sourced reference for blackhole expenditure.
What is section S40-880?
An allowance to cover the cost of food for an employee who temporarily relocates for work.
What is a Living Away from Home Allowance?
These aren't real dividends and don’t affect the balance sheet or P&L, but must be reported in the company and shareholder tax return.
What is a deemed dividend?
This is the first test that is considered for assessing someone's tax residency, and is taken from the definition - "'...to dwell permanently, or for a considerable time, to have one's settled or usual abode, to live, in or at a particular place...'
What is the resides test?
Section of the ITAA that references special professional income averaging.
What is Section 405 ITAA1997?
This Fringe Benefit is where an employer provides the provision of office desks and chairs used by an employee for work
What is a residual fringe benefit?
This was the year that Division7a was introduced
What is 1997? (doesn't make sense, I know - but I ran out of questions!).
This is NANE income derived by a resident company through a permanent establishment in a listed country (whilst carrying on a business and satisfying the active income test)
What are foreign branch profits?