Aggressive tax planning : differentiating those playing the game from those who don't

The study reported in this paper examined a group of Australian taxpayers who have expressed a preference for a creative and aggressive tax agent. The study attempted to understand how high-risk taxpayers and high-risk practitioners form their partnerships by examining aggressive taxpayers' attitudes and perceptions of the Australian tax system. Data were taken from 2040 Australian taxpayers who had responded to a national survey on tax issues. Results from a series of independent sample t-tests revealed that there are a number of important differences between 'aggressive' and 'non-aggressive' taxpayers. Finally, a logistic regression analysis was used to determine which variables most effectively differentiated aggressive taxpayers from non-aggressive taxpayers. The findings are discussed in a regulatory context and possible solutions for how tax authorities might deal with this high-risk group of taxpayer are suggested.

Tax planning, avoidance and evasion in Australia 1970-2010 : the regulatory responses and taxpayer compliance

This article examines tax avoidance strategies used by Australian taxpayers over the last four decades and analyses the regulatory responses by the government, noting a move away from the ‘command-and-control’ approach of the 1980s towards one of ‘responsive regulation’ and ‘meta risk management’. It is argued that despite inherent complexity issues, this regulatory approach has nevertheless contributed to the fostering of trust and a perception of fairness in the Australian tax system.

RP97-43 Tax Planning When Buying or Selling a Farm

If you're like most farmers, one of your key goals is to maximize after-tax earnings. The more money left over after you've paid your farm bills land your taxes, the more you and your family will have to spend. You can increase thos enet earnings in sveral ways: by increasing production, by decreasing cost of supplies oer by finding a way to get more for your produce. But there's another way to increase your after-tax earnings. One that many farmers oculd afford to spen dmore time on: decreasing taxes. The key to avoiding unnecessary taxes is tax planning. This publication will help you do just that: plan for the future.

International tax and the Australian wine industry: Is your client’s product destined to sail the seven seas?

The export market for Australian wine continues to grow at a rapid rate, with imported wines also playing a role in market share in sales in Australia. It is estimated that over 60 per cent of all Australian wine is exported, while 12 per cent of wine consumed in Australia has overseas origins. In addition to understanding the size and direction (import or export) of wines, the foreign locales also play an important role in any tax considerations. While the export market for Australian produced alcohol continues to grow, it is into the Asian market that the most significant inroads are occurring. Sales into China of bottled wine over $7.50 per litre recently overtook the volume sold our traditional partners of the United States and Canada. It is becoming easier for even small to medium sized businesses to export their services or products overseas. However, it is vital for those businesses to understand the tax rules applying to any international transactions. Specifically, one of the first tax regimes that importers and exporters need to understand once they decide to establish a presence overseas is transfer pricing. These are the rules that govern the cross-border prices of goods, services and other transactions entered into between related parties. This paper is Part 2 of the seminar presented on transfer pricing and international tax issues which are particularly relevant to the wine industry. The predominant focus of Part 2 is to discuss four key areas likely to affect international expansion. First, the use of the available transfer pricing methodologies for international related party transactions is discussed. Second, the affects that double tax agreements will have on taking a business offshore are considered. Third, the risks associated with aggressive tax planning through tax information exchange agreements is reviewed. Finally, the paper predicts future ‘trip-wires’ and areas to ‘watch out for’ for practitioners dealing with clients operating in the international arena.

Thin capitalisation – the multinational tax avoidance strategy the budget forgot

We have already seen major amendments to Australia’s tax regime to tackle base erosion and profit shifting (BEPS). Several more significant measures were announced in the federal budget, most notably the diverted profits tax, aimed at multinationals which shift tax to a lower taxing jurisdiction. Yet to date, a very simple tax minimisation strategy has been largely ignored in the ongoing reforms and was ignored in the federal budget. Excessive debt loading is a problem that not been afforded the same attention as other aggressive tax planning strategies adopted by multinationals.

An examination of taxpayers' attitutes towards the Australian Tax System : findings from a survey of tax scheme investors

In recent years, the number of taxpayers involved in aggressive tax planning has more than doubled, posing a serious threat to the integrity of Australia's tax system. To deal with the problem, the Australian Taxation Office (ATO) implemented a number of initiatives aimed at combating aggressive tax planning. Part of the ATO's crackdown involved issuing amended assessments to the 42,000 Australians who invested in mass marketed tax schemes. The majority of investors, however, resisted the ATO's attempts to recover scheme related tax debts. This paper discusses the findings of an empirical study that shows that the resistance was due partly to the manner in which the ATO dealt with the schemes issue. Using survey data collected from 2301 tax scheme investors, and 2040 taxpayers from the general population, it will be shown that those who invested in tax schemes are more disillusioned with the tax system, are more hostile and resistant toward the ATO, and are more likely to resent paying tax as a result.

Regulating more effectively : the relationship between procedural justice, legitimacy and tax non-compliance

In recent years, a significant number of middle-income taxpayers have been making use of aggressive tax planning strategies to reduce tax. In many cases, it is unclear whether these are designed and used by tax- payers to minimize tax legally or to avoid tax illegally. Those that are designed to exploit loopholes in tax law need to be dealt with in a way that restores faith and equity to the system. But how can tax authorities best manage taxpayers who may have inadvertently become involved in such illegal tax planning practices? Using longitudinal survey data, it will be shown that attempts to coerce and threaten taxpayers into compliance can undermine the legitimacy of the Tax Office's authority, which in turn can affect taxpayers' subsequent compliance behaviour. Responsive regulation, which is based on principles of procedural justice, will be discussed as an alternative enforcement strategy.

Effectiveness of Liechtenstein entities to prevent the application of Australian income tax attribution regimes

Analyses the most common structures of Liechtenstein. The Anstalt, Stiftung, Trust, Business Trust and Company are described and the taxation consequences for an Australian investor considered. The analysis covers the CFC, FIF, transferor trust, deemed entitlement and anti-avoidance rules in Australian income tax law.

101 Ways to save money on your tax - legally! 2014-2015

Stop giving your money away!You work hard for your money, and you work even harder to set and keep a budget that makes the most of it. But when tax time arrives, do you feel shorted on your return? Nearly everyone has to pay taxes, but the government is only entitled to so much of your money. You might be letting them keep hundreds or even thousands of dollars that rightfully belong to you. No matter what your accounting habits have been so far, you can still claim what's yours.101 Ways to Save Money on Your Tax—Legally! 2014 – 2015 is your ultimate guide to maximising your return. Author Adrian Raftery, a.k.a. Mr. Taxman, is Australia's leading personal taxation expert. In the book, Raftery provides the information you need to get back every single dollar you're entitled to, plus tips and tricks that help you get the most out of deductions related to:•You, your family, and your property•Education, employment, and small business•Investment property, shares, and superannuation•Special circumstances, including medical expenses and leviesThe book also contains advice on related matters, including tax-effective investments, tax planning, and how to find a great accountant. All information has been updated to reflect tax law changes wrought by the May 2014 budget. If you're tired of paying too much tax and seeing too little return, 101 Ways to Save Money on Your Tax—Legally! 2014 – 2015 is your comprehensive guide to putting things right, starting now.

Investment Valuation with Tax-optimized Financing Decisions and a Tax-optimized Default Alternative

In this paper we evaluate an indivisible investment project that is carried out in a corporation under very simple premises. In particular, we discuss a one-period model with certainty, the pure domestic case and proportional tax rates. Surprisingly, the decision problem turns out to be rather complex if one has to make allowance for different taxation of the corporation and its owner. Altogether there are more than 10 cases that have to be distinguished if the firm's managers want to make a correct decision, depending on the relation of personal and corporate tax rates.

Tax-Optimal Step-Up and Imperfect Loss Offset

In the field of mergers and acquisitions, German and international tax law allow for several opportunities to step up a firm's assets, i.e., to revaluate the assets at fair market values. When a step-up is performed the taxpayer recognizes a taxable gain, but also obtains tax benefits in the form of higher future depreciation allowances associated with stepping up the tax base of the assets. This tax-planning problem is well known in taxation literature and can also be applied to firm valuation in the presence of taxation. However, the known models usually assume a perfect loss offset. If this assumption is abandoned, the depreciation allowances may lose value as they become tax effective at a later point in time, or even never if there are not enough cash flows to be offset against. This aspect is especiallyrelevant if future cash flows are assumed to be uncertain. This paper shows that a step-up may be disadvantageous or a firm overvalued if these aspects are not integrated into the basic calculus. Compared to the standard approach, assets should be stepped up only in a few cases and - under specific conditions - at a later point in time. Firm values may be considerably lower under imperfect loss offset.

Tax guide, 1991.

Cover title.

101 ways to save money on your tax - legally! : 2016-2017 edition

101 Ways to Save Money on Your Tax – Legally! is the Australian taxpayer's essential guide to maximising returns. Comprehensively updated for 2016-2017, this indispensable resource explains all of the changes to the May 2016 budget to help you pay what you owe and not a penny more. You'll find answers to common questions, tax traps to avoid and plenty of tips from Mr. Taxman himself that can save you hundreds or even thousands of dollars! Leverage your business, education, family, property, medical expenses, levies, shares and superannuation to get the tax return you deserve – and are fully entitled to under Australian law. You'll also find expert advice for tax-effective investments, tax planning and how to find a great accountant, so you can position yourself for an even bigger return next year!

101 ways to save money on your tax legally! : updated for 2015-2016

101 Ways to Save Money on Your Tax–Legally! 2015–2016 sheds light on how you can increase your tax return by maximising your deductions. This practical guide explores how individual, family, property, education, employment, small business, investment property, shares, superannuation, medical expenses, levies, and other deductions can be leveraged to ensure that you receive the tax return you deserve—and that you do not overpay the government. You'll also get advice regarding tax-effective investments, tax planning, and the best way to go about finding a great accountant.Every year, you give a portion of your income to the government. While this money funds essentials like infrastructure, you certainly do not want to give more than you need to. This insightful guide provides you with the information necessary to ensure that you receive as much money back as possible on your tax return.Discover how you can maximise your deductions to increase your tax return—and get what you are entitled to back from the government each yearUnderstand the tax law changes from the May 2015 budgetAccess tips that assist you in planning and filing your taxes with your best interests in mindIdentify tax traps, and get answers to frequently asked questions101 Ways to Save Money on Your Tax–Legally! 2015–2016 is an essential resource for every Australian who pays taxes.

Planejamento Tributário pela Ótica do Estado: dívida ativa nos municípios fluminenses, sua relação com a Lei de Responsabilidade Fiscal e com o comportamento fiscal dos contribuintes

Ao discorrer-se sobre o tema Planejamento Tributário as considerações remetem, quase que de forma intuitiva, aos interesses unicamente das entidades contribuintes, que depositam nos seus gestores a incumbência de otimização de seus patrimônios. Entretanto, esse é um instrumental igualmente indispensável no repertório de soluções a serem adotadas pelos gestores públicos, também responsáveis em gerir da melhor forma possível o patrimônio, neste caso, da sociedade. Considerando a visão do gestor público sobre Planejamento Tributário, a qual foi chamada Ótica do Estado, este trabalho procurou trazer a dívida ativa nos municípios fluminenses para o centro da discussão, atribuindo-lhe um enfoque mais financeiro, tendo em vista que grande parte dos trabalhos que lhes são direcionados assenta-se sobre considerações jurídico-legais. Sendo assim, foram analisados dados extraídos de órgãos oficiais buscando-se verificar as relações existentes entre a cobrança de créditos inscritos em dívida ativa, os preceitos da Lei de Responsabilidade Fiscal e o comportamento dos contribuintes oriundo da postura do agente fiscalizador. Para tanto, a metodologia foi dividida em duas abordagens distintas (momentos). Para a primeira abordagem foi desenvolvida uma forma de conceituação para os níveis de recebimento de dívida ativa dos municípios, estruturada sobre a adaptação dos critérios desenvolvidos pela Associação Brasileira de Orçamento Público (ABOP); na segunda abordagem foram utilizados também de forma adaptada os parâmetros desenvolvidos pela Secretaria do Tesouro Nacional (STN) para análise das finanças municipais no Brasil. Os resultados sugerem que a maioria dos municípios fluminenses está transgredindo a LRF e que há influência no comportamento fiscal dos contribuintes.