Income tax

Introduction

Not only is income tax Australia’s greatest source of national revenue, the legislation and common law is the country’s most complex.

As a result of the government’s Tax Law Improvement Project, the main income tax laws are embodied in two Acts – Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997.  To assess the taxation ramifications of any transaction, the application of both Acts must be considered, together with the International Tax Agreements Act 1953 where those transactions have international effect.

Adding to the complexity is the substantial “tax reform” implemented and proposed by the government and recommended by the Ralph report.  One of the most revolutionary recommendations was to introduce a “cash flow/tax value” method to calculate taxable income.  Although the introduction of this recommendation has been deferred, the government is still committed to its introduction.

Tax returns & advice

Australian taxpayers are obliged to comply with a myriad of statutory obligations.  With those obligations, taxpayers also has statutory rights which often need to be exercised within a particular period to ensure those rights are not extinguished.

Obligations

Prepare and lodge regular taxation returns

Rights

With the lodgement of a tax return, an assessment will be or will be deemed to have been issued by the relevant authority such as the Deputy Commissioner of Taxation.  Where a taxpayer is dissatisfied with an assessment, the taxpayer is generally entitled to object against the assessment.  However, that right may be extinguished where the objection is not lodged within a particular period.  Accordingly, it is essential that taxpayers manage the lodgement of objections.

Services

Taxation Advice:

Although the Australian Government has attempted to “simplify” the Australian Taxation system, the system remains highly complex.  Recognising the risks that Australian Businesses bear in relation to its obligations, Dobbie Services offers a comprehensive taxation advice service.

The Commissioner of Taxation is entitled to levy significant penalties where a taxpayer does not take reasonable care in the management of its taxation affairs.  To ensure reasonable care is taken, taxpayers should obtain independent taxation advice prior to entering into any transaction.

Taxation Prudential Audit

Although you may think that your business is complying with its Australian taxation obligations, are you sure?  The Commissioner will not accept the argument

Taxation Audit Management:

The Commissioner has the right to commence an audit of any Australian taxpayer’s compliance with its Australian taxation obligations.

As a taxpayer, you also have rights in relation to that audit.  Dobbie Services offers a Taxation Audit Management service to ensure you avail yourself of those rights.  For example, penalties may be reduced where a taxpayer makes “voluntary disclosure” of failure to comply with taxation obligations.

Companies, trusts, partnerships, superannuation funds

This service ensures that you comply with your return obligations including full and true disclosure and timeliness. The service is available to the following entities:

Company
Trust
Superannuation Fund
Partnership
Joint venture
Personal

Australian & foreign residents
Your residency status for tax purposes is important because it helps determine your liability to pay Australian income tax.
Capital gains tax
Tax consolidation
Transfer pricing
Thin capitalisation
Fuel tax credits

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