Recently, the Australian Taxation Office (ATO) issued Taxpayer Alert TA 2021/2. This alert addresses Australian taxpayers who are trying to avoid paying taxes on their foreign assessable income. Instead of being honest about this income, some Australian taxpayers are trying to disguise funds they received from overseas as a gift or a loan from a related overseas entity.
The ATO is also concerned about certain Australian taxpayers who are using such loans to claim deductions for interest that was never incurred.
Debts that are not caught by bankruptcy – a quick guide
“Bankruptcy” used to be a punishment for those who could not pay their debts. In Medieval Europe, individuals who could not pay their debts were imprisoned and had to work off their debts with hard labour.
Now that the Small Business Restructure (“SBR”) process is up and running, learn more about the process from our experience in conducting one of the first SBRs.
On 10 December 2020, Parliament passed the Federal Government’s insolvency reform package to assist small businesses. The reforms commenced on 1 January 2021 and coincided with the end of the temporary insolvent trading “safe harbour” and statutory demand measures introduced in March 2020 in light of the economic fallout caused by COVID-19.
International freight at risk – as the supply of new container ships drops and environmental pressure for cleaner fuels increases.
Executives are warning about an increase in shortages of container ships. While orders for new vessels have been pouring in, the global logistics demand is high, with availability unlikely to stay on par going forward. Earlier this month, a COVID-19 outbreak partly shut down Ningbo-Zhoushan in China, one of the busiest ports in the world.
A binding financial agreement (BFA) under the Family Law Act will not necessarily survive the scrutiny of a Trustee in Bankruptcy.
In accordance with s. 120(1) of the Bankruptcy Act 1966 (the “Act”), a transfer of property made by a transferor who later becomes bankrupt is void against the trustee in bankruptcy if:
the transfer took place within 5 years before the commencement of the bankruptcy; andthe transferee gave no consideration for the transfer or gave consideration of less value than the market value of the property; andnone of the exceptions in ss. 120(2) or 120(3) apply.
The recent lockdowns and border closures, seen in every mainland State of the country, are putting almost every small business to the test. With no JobKeeper to the rescue, the limited Government support is at least being boosted by assistance from our Banks.
This month saw lockdowns in NSW, Vic and SA due to the COVID-19 pandemic and the highly-contagious Delta strain.