The ATO modernises its position on tax and travel and the implications of the expansion of the foreign resident withholding rules
A number of pieces of tax legislation have either been introduced into Parliament or have become law, including changes to the foreign resident withholding rules that were announced in the 2017-18 Federal Budget.
These changes will significantly increase the number of transactions that are subject to the withholding system from 1 July 2017 and it will be important for practitioners to work with their clients and their legal advisers to ensure that clients are not unnecessarily exposed to adverse cash flow implications (e.g., by not obtaining a clearance certificate from the ATO) or the significant penalties that can apply if obligations under these rules are not satisfied.
A new draft ruling also provides updated guidance on the tax treatment of travel expenses. Given the ATO’s recent focus on claims for travel expenses it would be worthwhile taking a look at the ATO’s updated comments and the examples provided in the draft ruling to understand the situations where clients will find it difficult to claim deductions for travel costs and the situations where the ATO’s approach appears to be more flexible than in previous guidance in this area.
Join the Knowledge Shop team for all this and more.
Join Bradley Beer (CEO, BMT Tax Depreciation), Michael Carruthers (Tax Director, Knowledge Shop), and Rae Ni Corraidh (Tax Adviser, Knowledge Shop), for just the juicy bits of change for accountants and advisers:
- ATO modernises its views on tax and travel – what the consolidated and modernised draft ruling means
- How ordinary commercial arrangements could be caught by Div 7A – what you need to know
- Changes to the foreign resident withholding rules come into effect significantly widening the impact
- The outcome of the case exploring substantiation requirements for work related expenses
- $20k immediate deduction threshold extension becomes law
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