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A Case of Death Benefits and Lump Sum Payment

Le 20 November 2017, 20:43 dans Humeurs 0

Anthony Restaino was dealing with clients by the name of Clare and Peter, who were a couple who were also the trustees of their self-managed super fund. Mary had been fighting cancer for three months and succumbed to death. This leaves Peter as the sole beneficiary of Mary’s benefit. Moreover, as Peter was Mary’s husband, he was also the dependent at the time Mary passed away.

Given that Peter has been managing his personal portfolio of investments, he has requested the authorities to pay his wife’s death benefit in three installments rather than a lump sum so as to suit his financial conditions.

Anthony Restaino was his consultant for this matter who guided him according to the Superannuation Industry Regulations. The rules state that death benefits may be received in two installments, which are as an interim payment, and a final one.

This means that Peter cannot request to have the payment in three installments. To fulfill the rules as stated by the SISR, Peter needs to revise his personal investment portfolio and receive the payment in two installments.

Anthony Restaino advised Peter about death benefit in great detail. He told him that in order to be on the safer side, Peter needs to make himself fully aware of the Superannuation Industry Regulations. Any payments that are made must comply with the rules so that the law is upheld and not breach. Moreover, in case Peter comes to know that his self-managed super fund has come into contradiction with the rules of death benefit payment, he must speak to Anthony Restaino without any further delay. This is because such matters required immediate attention from the appropriate professional and must be incorporated in the yearly accounts. Moreover, Peter can always consult Anthony Restaino to discuss his options so as to keep discrepancies at bay. By all means, tax laws have to be abided by in order to avoid any penalties. 

For more information about lump sum payments, contact Anthony Restaino for Trak Accountants.

Gain Clarity on the Transition Rules of Digital Products

Le 20 November 2017, 20:42 dans Humeurs 0

Anthony Restaino explains transition rules of digital products. Any sales of digital products and services by overseas businesses in Australia will now incur a GST, effective from 1 July 2017. This renders that such ventures have to pay tax for music, e-books and movies, or any legal service provided. However, there are transitional rules for the period before 1 July 2017 and afterwards. This included subscription, and that the tax will be applied to the taxable income after 30 June 2017.

Anthony Restaino was consulted by Andrew regarding this matter as he was not very much clear about how to apply the transitional rules. Andrew had subscribed to an online library which allows him to access different e-books and other electronic sources for over a time span of two years. Upon subscription, he had to pay for the full amount on the invoice.

The subscription gives him access to intellectual property and digital products over a time that crosses 1 July 2017. This renders that the supply to the online library is subject to transitional rule, and that any supply made after 30 June 2017 has to be taxed. As such, the tax starts from 1 July 2017 and applies to the remaining 21 out of 24 months.

In order to gain clarity on the matter, Anthony Restaino explained to Andrew that had he accessed the online library before 30 June 2017 to find some valuable e-book, and paid on getting invoiced, but the book is not available instantly.

Let’s say that the library takes around 2 months to make it available and he has access to it on 15August 2017. In this instance, this sale would not be subject to tax. This is because neither the supply is periodic, nor progressive. Moreover, the payment was made before the effective date of Tax, i.e 1 July 2017. This is the case where transition rules are not applicable.

For more information about digital products, contact Anthony Restaino from Trak Accountants.

Research and Development Tax Incentive – A Real Case Study by Anthony Restaino

Le 20 November 2017, 20:41 dans Humeurs 0

Anthony Restaino, an accomplished Gold Coast accountant, uses the following case study to explain the research and development tax incentive. A passionate businessman Jason owns a medium-sized business and wants to take advantage of the R&D tax incentive. An R&D consultant approaches him and gives him a good news that he can maximize his R&D incentive. As told by the consultant, the claim does not necessarily have to be eligible with the R&D activities. Also, Jason only needs to register his R&D activities with AusIndustry, and his claim would be approved upon approval.

The consultant also tells Jason that the information he provides to AusIndustry does not has to be in sync with his schedules he has to file at ATO. He is of the opinion that these two offices are separate organizations which never cross check information.

Nonetheless Jason has his concerns because all this cannot be so true. He decides to meet Anthony Restaino who is a renowned tax agent in Gold Coast and also registered. Jason’s tax agent Anthony Restaino consults the website of AusIndustry along with ATO in order to know the actual facts regarding R&D tax incentive. The findings are very different from what the R&D consultant told Jason.

The findings are:

1.       ATO and AusIndustry work in joint collaboration and constantly share information. Not only does this include details related to the registered activities, but also include the amount spent with respect to each activity.

2.       Claims are reviewed if there are any significant discrepancies.

3.       Only actual R&D expenses must be claimed as such.

4.       Accurate and consistent supply of information is a must, which must be supported by evidence.

Anthony Restaino tells Jason that unethical and wrong actions can make him end in trouble, and can also make the tax authorities review his company fully. Moreover, Jason might also have to return any funding while incurring penalties. This makes Jason reject the consultant’s offer and sticks with his tax agent Anthony Restaino from Trak Accountants to guide him further. 

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