Rudd vAbbott

[Crabnet]

Tell that Senior Skase (dec), Bond, etc...and to all those now defunct Pty Ltd insulation pink batts gov subsidy businesses.

Peter

That's nothing new. The ATO are constantly battlin tax evasion on all fronts.
Lately they have been given extra funds in an attempt to catch up with phoenix companies. No surprise that the returns on their investment in compliance checking has an extremely good return.

This years focus.
Quote:
The Tax Office has small business square in its sights this year, with PAYG obligations, trusts, profit shifting, eCommerce and the construction and building industries all marked for extra compliance monitoring during the 2013-14 financial year.

The misuse of trusts, profit shifting, complex private structures and dodgy deductions for both small businesses and individuals will be given extra scrutiny this year as well.

And if you’re a sales and marketing manager, then look out – your deductions will be under the microscope.

The ATO has released its compliance monitoring report for the year ahead, the annual document which outlines the areas where the tax man will be spending extra time looking for errors and compliance.

Not only has the ATO been given huge budgets over the past few years to increase certain compliance activity, investment in technology is making these campaigns much more successful – in 2012-13 the ATO raised $2.1 billion in liabilities from SMEs.

New technology, such as data matching, is making the whole process even easier. Over the next year, the ATO expects to make 640 million matches for transactions, especially for those made by wealthy individuals.

But small business will feel the brunt of this technology, too – the ATO will make 17,000 “employer obligation checks” in the year ahead.

It doesn’t stop there. Over the next 12 months, the ATO expects to make 1000 audits of medium-sized enterprises, another 1000 for wealthy individuals and 2047 checks for ensuring compliance with GST laws.

While the ATO will be cracking down on any number of areas this year, these are the key areas you need to know about in 2013-14:..........continues

 

[dan c]

Noted with thanks. Peter

PS in theory I support keeping mums in the workforce but this is the wrong way.

The best way by a country mile is simple: free child care.

Simple, clear, obvious.

1. Puts jobs in the area there are more workers available and proven improvements in children learning and social skills on a whole.

2. and does not discriminate between incomes on doctor on $200k, Chef on $60k, Ambo on $80k, all female heavy professions in short supply of employees which required heavy investment in training (uni/tafe) and experience.

Yeah, pretty much agree with that.

What neither party says is that Paid Parental Leave doesn't help working mums and dads after bubs is 6 months old.

Then, mum goes back to work, often at a reduced level, often because of a lack of child care options.

So mum has the first six months after baby is born at full salary, then goes back to work half time at half the pay rate, whilst shelling out for child care.

Something doesn't add up here.

Disclosure - my wife and I are right in target zone of this policy. Wife earns just as much as I do, and we are in the baby zone, so we would benefit greatly form this policy if it was implemented.

 

[cimbom]

While we're discussing what Australian can and can't afford in the area of maternity leave, I would like to draw your attention to this:

http://en.wikipedia.org/wiki/Parental_leave

Specifically, the heading "Variation in international law"

 

[Crabnet]

Yeah, pretty much agree with that.
Disclosure - my wife and I are right in target zone of this policy. Wife earns just as much as I do, and we are in the baby zone, so we would benefit greatly form this policy if it was implemented.

It could be a bloody good wage to sit around watching daytime and nighttime television burping babies and changing their nappies. Money for jam.

 

[dan c]

It could be a bloody good wage to sit around watching daytime and nighttime television burping babies and changing their nappies. Money for jam.

We have just had a baby, so my wife is on leave at the moment. I told her that we won't be having number 2 until after 1 July 2015!

 

[Peter 14.7]

I didn't know those insulation businesses owed the ATO any money? If they went broke, it's doubtful...

Hi HE.

Your post makes complete sense to you, me and 99% of the honest businesspersons...just not for the 1% of dodgy ones and those who don't fear time.

Imagine if you didn't have to remit your PAYG, Company Tax? Profit Tax, and GST, for almost 12 months, and the money ain't there. So sorry ATO. It happens all the time with leave entitlements for employees went they go under.

Yes, the ATO can chase you unless you go Overseas, divorce your wife and she gets the house, car, shares, etc....

Yes directors are liable but look at James Hardie Directors, re the asbestos fund not being enough scam, they are still yet to see any jail. And then their is the master.... ALAN BOND

In 1992 Bond was declared bankrupt with personal debts totalling A$1.8 billion.

In 1995 Bond's family bought him out of bankruptcy, with creditors accepting a payment of A$12 million, a little over half a cent per dollar.

In 1997 Bond was sentenced to 7 years in prison after pleading guilty to using his controlling interest in Bell Resources to deceptively siphon off A$1.2 billion into the coffers of Bond Corporation. NOTE: he pleaded guilty.

Bond was released in 2000, having served only four years in prison at Karnet Prison Farm.

NOTE: he scammed $1,200,000,000 and paid 4 years, That is $300M per year.

In 2008, Bond made a return to the Business Review Weekly's "Rich 200 List", in 157th spot, with an estimated wealth of $265 million.

QUESTION where did that seed capital come from?? only 8 years to go from skid row to $265M?

I rest my white collar crime is easy case. Yes I admit Bondy is not the average 12 month operator but any system that makes it easier helps those types.

Peter

PS Spent his 4 years at Karnet Prison Farm.

A minimum security Australian prison located 16 kilometres (10 mi) from Serpentine, Western Australia. The prison farm, located on a 375-hectare (927-acre) property, provides meat, eggs, and vegetables for the entire prison system in Western Australia. It breeds cattle and sheep and also has an abattoir, a dairy, a poultry farm, market gardens and an orchard that supplies citrus and stone fruit. The prison is located in the Keysbrook State Forest, 73 kilometres (45 mi) south of Perth.

So he lived in fresh air, free board, farm fresh food and no doubt, on arrival he would have already set up to be "mates" (for $$$) with the biggest baddest brother in the joint for security.

 

[Crabnet]

We have just had a baby, so my wife is on leave at the moment. I told her that we won't be having number 2 until after 1 July 2015!

Oh No. A baby drought til then. Midwives wail be twiddling their thumbs for a year and a half.

 

[Peter 14.7]

But small business will feel the brunt of this technology, too – the ATO will make 17,000 “employer obligation checks” in the year ahead.

It doesn’t stop there. Over the next 12 months, the ATO expects to make 1000 audits of medium-sized enterprises, another 1000 for wealthy individuals and 2047 checks for ensuring compliance with GST laws.
[/URL]

The numbers above sound large until your read this:

Karen Connaughton, Director of National Tax Data and Business Demography, said that the Australian Business Counts publication showed there were 2,141,280 actively trading businesses in Australia at June 2012.

So they are auditing 1,000 out of 2.1M. That is 0.05%.

I write having dealt with a few dodgy operators in the building industry and more than half never get caught, of those who do, the money is gone. I know one "struggling" two man, him and offsider , who just bought a new porsche, Cash!

Peter

 

[Crabnet]

The numbers above sound large until your read this:

Karen Connaughton, Director of National Tax Data and Business Demography, said that the Australian Business Counts publication showed there were 2,141,280 actively trading businesses in Australia at June 2012.

So they are auditing 1,000 out of 2.1M. That is 0.05%.

I write having dealt with a few dodgy operators in the building industry and more than half never get caught, of those who do, the money is gone. I know one "struggling" two man, him and offsider , who just bought a new porsche, Cash!

Peter

Yes. They can't check them all so use procedures that attempt to identify the areas and businesses most at risk of being cheats. If the claims of such businesses fall outside of an acceptable window the alarms go off. So if a regular business wants to trade for a long time it's best to be clever, not greedy.

 

[HiEquity]

I rest my white collar crime is easy case. Yes I admit Bondy is not the average 12 month operator but any system that makes it easier helps those types.

This is all true Peter but can I just point out the ATO got their money. It was the investors and bankers who lost money - not the ATO.

Comparing the ATO's debt recovery powers with those of banks and investors is like comparing chalk and smelly cheese...

 

[Peter 14.7]

Yes. They can't check them all so use procedures that attempt to identify the areas and businesses most at risk of being cheats. If the claims of such businesses fall outside of an acceptable window the alarms go off. So if a regular business wants to trade for a long time it's best to be clever, not greedy.

ATO do their best which is admirable but my point is, changing BAS to 12 months will not help their efforts.

To reference your own comments, how can they check ..."business falls outside acceptable window" when they only get details to check, once every 12 months?

Moving on the PPL Scheme is good intentions but not good policy. A vote buyer. Yes I said it as Lib leaning voter.

Regards to all, Peter 14.7

 

[Crabnet]

ATO do their best which is admirable but my point is, changing BAS to 12 months will not help their efforts.

To reference your own comments, how can they check ..."business falls outside acceptable window" when they only get details to check, once every 12 months?

Moving on the PPL Scheme is good intentions but not good policy. A vote buyer. Yes I said it as Lib leaning voter.

Regards to all, Peter 14.7

For small and medium size businesses it's the annual tax returns that they check for compliance.
The quarterly gst reconciliation for that size business has 3 choices for submission.
Pay quarterly gst instalment amount (calculated by ATO)
calculate and pay gst quarterly
Calculate and pay gst quarterly but report annually.
Add to that you can do your accounts on an accrual or cash basis and do your gst on an accrual or cash basis. They don't have to be the same method.

 

[Peter 14.7]

For small and medium size businesses it's the annual tax returns that they check for compliance.
The quarterly gst reconciliation for that size business has 3 choices for submission.
Pay quarterly gst instalment amount (calculated by ATO)
calculate and pay gst quarterly
Calculate and pay gst quarterly but report annually.
Add to that you can do your accounts on an accrual or cash basis and do your gst on an accrual or cash basis. They don't have to be the same method.

Your point is?

I still see GST not being paid until 12 months and all that interest not being earned on it. Clearly a significant cashflow issue for the fed gov.

And as someone with two businesses and a trust, if you are not knowing/doing your P & L at least every three months you are not serious.

I think the real issue, back on politics was earlier this year they were moving to one month BAS, now it is 12 month BAS.

So in the immortal words of Saint Pauline the Right (Wing) PLEASE EXPLAIN

Peter

 

[Crabnet]

Your point is?

I still see GST not being paid until 12 months and all that interest not being earned on it. Clearly a significant cashflow issue for the fed gov.

And as someone with two businesses and a trust, if you are not knowing/doing your P & L at least every three months you are not serious.

I think the real issue, back on politics was earlier this year they were moving to one month BAS, now it is 12 month BAS.

So in the immortal words of Saint Pauline the Right (Wing) PLEASE EXPLAIN

Peter

I thought we were discussing fraud not tax receipts timing.
With respect to fraud the point is people have the option now to report gst annually although they are required to pay quarterly.

 

[HotRod]

Came across this site:

Fact Check

which I thought was very interesting.

 

[josko]

Our answer to Maternity Leave:

Employment of women over 45.



Of course this solution did have a hiccup two years ago when our secretary's daughter had her first child.

Her daughter's child was sick.
We had to pay our secretary to stay at home and look after her daughter's sick child, because her daughter couldn't take the day off work.

This scenario happened about three or four times throughout the last year of our secretary's employment.

Go figure.

 

[josko]

I'm open to being put right, but to me this GST change just sounds like a gimmick. AIUI the change affects businesses with a turnover of $2m-20m, so not that small. Any business that size (and most of any size) has its accounts on computer so surely completing the tax return is a question of the accounts program spitting out the numbers and you completing the return.
.

Not always. Without going in to detail, we have two accounting files running for Directors and then Employees. The final numbers are easy, but I tend to go through everything where the GST is concerned to make sure the secretary has allocated our non payable GST items correctly and visa versa.

If I was to leave this sort of thing until the end of the year...geez...what a headache. Although it is a fairly simple process to do the BAS.....it is still a case of checking everything on the list.

But overall...it's just another offhanded policy thrown out there to try and counteract Liberal Policy.

Can anyone really imagine the Government going without a years worth of taxes????????

Although, it would be good for Labor. Kind of like forced saving.

 

[rodimus]

This is what it looks like when a billionaire influences an election.

Labor powerbroker Bill Shorten kicking out Kevin Rudd for being a screw up & is a dictator, puts Gillard in as PM which is even worse, and then Bill Shorten votes Kevin Rudd in as his preference saying it's the only choice. So the screw up that he kicked out 3 years ago is now the "only chance for ALP". Go figure!

THIS IS WHAT IT LOOKS LIKE WHEN LABOR POWERBROKERS CHOOSES WHO IS THE PRIME MINISTER AND AUSTRALIANS HAVE NO SAY OVER IT. ONLY THE POWERBROKERS HAVE THE POWER.

We won't be surprised if Labor wins again (unlikely), that Penny Wong or Albanese suddenly gets elected by Labor powerbrokers to be the new PM!

Never trust Labor again!

 

[Mooze]

Noted with thanks. Peter

PS in theory I support keeping mums in the workforce but this is the wrong way.

The best way by a country mile is simple: free child care.

Simple, clear, obvious.

1. Puts jobs in the area there are more workers available and proven improvements in children learning and social skills on a whole.

2. and does not discriminate between incomes on doctor on $200k, Chef on $60k, Ambo on $80k, all female heavy professions in short supply of employees which required heavy investment in training (uni/tafe) and experience.

This would be a much better way to go about it than the maternity leave which will only see young females up to maternity age discrimated against. Having said that I don't quite agree with free - subsidized to a base level would be better - if you want a whizz bang childcare you can pay extra, if not go with the basic. Make it available only to those working and make it available 24 hour to accommodate those on shift work.

From a pregnant mum who'd stand to gain a lot from TA's PPL scheme (which isn't actually a parental scheme but a maternity scheme) if we get around to number 2.

Edit to add - would love to see them get rid of baby bonus, as well as any form of welfare attached to how many kids you have (be it middle class or lower class welfare). Any payment attached to having kids should be gone - it you want kids, make sure you can afford them.

 

[Mush]

This would be a much better way to go about it than the maternity leave which will only see young females up to maternity age discrimated against. Having said that I don't quite agree with free - subsidized to a base level would be better - if you want a whizz bang childcare you can pay extra, if not go with the basic. Make it available only to those working and make it available 24 hour to accommodate those on shift work.

From a pregnant mum who'd stand to gain a lot from TA's PPL scheme (which isn't actually a parental scheme but a maternity scheme) if we get around to number 2.

Edit to add - would love to see them get rid of baby bonus, as well as any form of welfare attached to how many kids you have (be it middle class or lower class welfare). Any payment attached to having kids should be gone - it you want kids, make sure you can afford them.

A great solution to an age old problem.Creates meaningful employment and business opportunity enabling mothers to return to the workforce if they wish/need to,whilst contributing to a caring society. Win,Win,Win.......