Issue 169, 14 March 2008

Welcome to the latest issue of Thomson's Tax & Accounting Insight, your free news service for tax and accounting professionals.

Tax & Accounting Insight is the easy way to keep up with the latest developments in your industry. Watch your inbox for your fortnightly issue of this free, informative service from Thomson.

Articles in this edition include:

• Commissioner outlines SMSF compliance issues

• FBT time is near - Tax Office checklist released

• Timing Of Receipts

• Thomson Tools

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Commissioner outlines SMSF compliance issues

Tax Commissioner Michael D'Ascenzo has outlined the compliance areas where some trustees of self-managed superannuation funds (SMSF) are getting it wrong and where advisers need to be on guard. Speaking at the SMSF Professionals' Association of Australia (SPAA) conference in Brisbane, Mr D'Ascenzo said the sharp increase in the number of SMSFs means there are a lot more trustees with their 'learner plates' on and at risk when making investment decisions for their retirement savings.

While the main motivator for establishing a SMSF is a desire for flexibility and control over the investment of superannuation assets, the Commissioner is concerned that this responsibility is not being matched by higher levels of accountability by all SMSF trustees. Mr D'Ascenzo said the Tax Office is currently reviewing 500 SMSFs where their returns indicate that over 80% of assets have been loaned to others. Other compliance issues are non-allowable assets, excess contributions, fund borrowings, rectifying reported breaches, unreported CGT on source of contributions and auditor's responsibilities. Mr D'Ascenzo said all SMSFs that fail to lodge their return on time will be contacted immediately for follow-up action.

This article appeared in Thomson's daily Latest Tax News (Wednesday 12th March). With tax fast-moving and ever changing - every day, practitioners rely on Thomson's daily Latest Tax News for quick, accurate, comprehensive information - no compromises. When you need to know what's new in tax and related news every day, there's only one place to look - LTN. 
To find out more, click here.

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FBT time is near - Tax Office checklist released

The end of the FBT year is fast approaching and the Tax Office suggests it is a good time for tax agents to review their clients' FBT obligations and the valuation methods used for any benefits they provide. The Tax Office says it has developed a checklist that can be used to assist in determining if taxpayers may have an FBT obligation. The checklist says:

'If you are currently an employer, this checklist will help you work out if you are providing a fringe benefit to your employees.

If you answer yes to any of the following you may be liable for FBT'.

This article comes from FBT Compliance Toolkit. With this specialist toolkit, you have all you need to quickly and professionally complete FBT returns. As well as the toolkit software, you also receive a compliance guide providing you with up to date information on the latest FBT law and practice; an email news alert keeping pace with developments in this area and a helpline enabling you to discuss specific FBT matters that arise when using the toolkit.

To obtain more information, or to subscribe to FBT Compliance Toolkit, simply contact your nearest Thomson representative or call 1300 304 197.

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Timing of receipts

The Tax Office has issued a Self Managed Superannuation Funds (SMSF) Determination that provides its view on the timing of when a dividend or trust distribution is received by a SMSF for the purposes of the in-house asset rules. The Determination states that the timing depends on the payment option that is either chosen by the SMSF or prescribed by the company or trust respectively.

The in-house asset rules govern the proportion of a superannuation fund's assets that may be lent by the trustee to or invested in an employer-sponsor of the fund or an associate of the employer. The rules state that a trustee of a superannuation fund must not acquire in-house assets if to do so would increase the ratio of such assets to over 5% of total assets, or if the ratio already exceeds 5%.

However, transitional provisions can apply to exclude investments in related entities as being in-house assets. One of the transitional provisions seeks to exclude investment made in related entities between 12 August 1999 and 30 June 2009 as being classified as in-house assets. This transitional provision requires a taxpayer to test when a dividend or trust distribution is received by the SMSF.

This article appeared in Thomson's Client Alert Newsletter Service. Client Alert is a monthly newsletter that promotes your business and develops your client's awareness of upcoming tax issues. To find out more, phone Thomson Customer Service on 1300 304 197 or click here.

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Thomson Tools

Your FBT deadline is looming

The FBT year-end is rapidly approaching. Take advantage of Thomson's FBT solutions designed to keep you up-to-date with current issues and help you meet your business goals and deadlines. Get the support you need to stay a step ahead of FBT in 2008 with:

• Cost effective online solutions to give your productivity a real boost
• User-friendly resources to meet the impending FBT deadline
• Better deals on essential salary packaging products

FBT Compliance Toolkit

Forget tedious manual calculations, filling in forms by hand and endless filing.

The complete FBT service providing news, commentary, FBT return software and a helpline, FBT Compliance Toolkit provides everything you need to quickly and professionally complete FBT returns, calculate taxable values and produce ready-to-lodge returns and documentation in minutes.

Features include:

• Easy-to-use templates to automatically calculate taxable values and generate ready-to-lodge ATO approved returns.
• Rollover of prior year details, with a quick reference archive for previous returns.
• Expert FBT commentary to keep you up-to-date on significant FBT developments and offer guidance on the different types of fringe benefits and how to calculate them.
• FBT Helpline for expert assistance from specialists Moore Stephens.
• Fortnightly FBT email alerts to stay on top of developments, cases, rulings, rates and announcements.

For more information about the FBT Compliance Toolkit, click here.

GoFileRoom

With GoFileRoom, you get so much more than a document management system - you get a completely integrated document management, workflow and scanning solution that enables you to efficiently manage and secure all documents at every step of the workflow process.

A powerful Web-hosted solution, GoFileRoom is so intuitive that there is virtually no learning curve. Simply log on and go to work.

Designed specifically for the Tax and Accounting Profession, GoFileRoom offers:

• A true enterprise-wide solution
• Better control and standardisation
• Electronic routing and tracking
• Improved collaboration
• Real-time reporting
• Better management of staff workloads
• Fast, easy document searching
• Flexible email capabilities

For more information about GoFileRoom click here

Salary Packaging Toolkit

Confidently administer salary packages, attract and retain top performers and control remuneration costs in a few simple steps.

This comprehensive, easy to use software provides full analyses of entire salary packages within minutes! Featuring two updates per year, the toolkit helps you easily design and implement mutually beneficial remuneration packages.

Simply follow the prompts, fill in the information and receive a full breakdown of total costs and benefits;

• Complete 'What if' analyses so you can compare different benefits.
• Implement Salary Packages efficiently
• Control Costs
• Attract and retain Skilled employees
• Become an employer of Choice

For more information about Salary Packaging Toolkit click here

Fringe Benefits Tax Service

Your complete, plain-English guide to current fringe benefits tax law, regulation and practice. Explanatory commentary at the point of reference in the law aids interpretation in real-world situations, and the service includes sections on tax audits and remuneration planning, plus a guide to the relevant tax rates and dates. Regular bulletins also keep you up-to-date with new developments in FBT.

For more information about the Fringe Benefits Tax Service click here

Salary packaging and FBT and Employment Taxes

A practical two-volume guide to the taxation of employment benefits and your FBT compliance obligations. Includes step-by-step guidance on how to structure cost-effective salary packages and manage and process FBT. Examples, case studies, document templates and checklists support the commentary.

For more information about the Salary Packaging & FBT, click here.

Thomson's new half-day financial reporting workshops

International accounting standards are now a permanent part of the accounting landscape - have you fully implemented the standards to ensure you are compliant? Thomson's Tax Effect Accounting and Asset Impairment half day workshops are designed to provide you with the IFRS knowledge and skills you need to confidently address the complex international accounting calculations and record-keeping requirements.

For more information on the Tax Effect Accounting half-day workshop, click here

For more information on the Asset Impairment half-day workshop, click here

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