Federal Government: Tax relief for flood-affected communities
The Federal Government has announced it will provide immediate tax relief to affected communities. In particular, taxpayers in flood-affected areas will be provided with any additional time they need to meet any upcoming business activity statement obligations. Impacted taxpayers that pay their PAYG Instalments quarterly will also be allowed to vary upcoming instalments and claim a refund of previously paid instalments. For further information, see here.
De-registered company has no standing to dispute assessment
The AAT has re-affirmed that a company that had been de-registered had no standing to contest a disputed assessment – in this case in the form of a review of an objection decision made by the Commissioner. The dispute related to the imposition of penalties of over $38,000. By the time the matter came before the AAT, it was discovered that the company had been de-registered. Accordingly, the AAT concluded it did not have jurisdiction to hear the application. (Trustee for B & J Chung Trust and FCT [2022] AATA 383, 3 February 2022.)ATO: Using company or trust money for private purposes
The ATO has issued a reminder to controllers of companies and trusts through which businesses are run of the dangers of using the business’s money or assets for private purposes. It advises controllers to keep complete and accurate records to explain such transactions and to report them correctly in the company or trust tax return and in individual tax returns. The ATO also warns that there can be unintended tax consequences if this is not done (e.g triggering Div 7A.)