We purchase tools to make a job easier, quicker, and ensure it’s completed to a high standard. This is the case whether buying tools to fix some household chore or provide tax planning services to clients. No practice operating today can be efficient or effective doing any practice task manually. It doesn’t matter what the…
Accounting practices have six options available to them in relation to providing tax planning services. Some practices will choose one option (strategic pathway) and others several. In addition, over time different practices will change their focus and add/or delete different options. No one pathway will fit or suit all practices. The six tax planning service…
The US Public Interest Research Group said in 2014 that the United States loses roughly $184 billion per year due to corporations such as Pfizer, Apple, Facebook, Microsoft and Citigroup using offshore tax havens to avoid paying US taxes. In 2010-2012 Pfizer paid no US income taxes despite earning $43 billion. Microsoft held $76.4 billion…
Certain public and non-profit hospitals, ambulance services, public benevolent institutions (PBIs), religious institutions, and health promotion charities (HPCs) are eligible for an FBT exemption. The benefits it provides its employees are exempt from FBT if the total grossed-up value of certain benefits for each employee during the FBT year is equal to, or less than,…
Community attitudes towards tax avoidance vary from approval through neutrality to outright hostility. Attitudes may vary depending on the steps taken in the avoidance scheme, or the perceived unfairness of the tax being avoided. Tax avoidance by corporations in the UK came to national attention in 2012, when MPs singled out Google, Amazon.com and Starbucks…
Tax avoidance has been around as long as taxes. One historic example of tax avoidance still evident today was the payment of window tax. It was introduced in England and Wales in 1696 with the aim of imposing tax on the relative prosperity of individuals as the bigger the house, the more windows it was…
The Minerals Resource Rent Tax (MRRT) was a tax on profits generated from the mining of non-renewable resources in Australia. The tax, levied on 30% of the ‘super profits’ from the mining of iron ore and coal in Australia, was introduced on 1 July 2012. Supporters of the tax pointed to continually-large profits produced by…
The Commonwealth legislated that their income tax take priority over any State income tax and that any State retiring from income tax collection be paid a grant in compensation for lost revenue. The States rejected this tax takeover but the High Court ruled that the Commonwealth income tax legislation was valid, essentially giving the Commonwealth…
The federal government introduced payroll tax in 1941 at 2.5% of wages to finance a national scheme for child endowment. In 1971, the federal government handed over payroll taxes to the states and they promptly increased the rate to 5%. Tax competition between states and lobbying by individual employers and employer groups for exemptions has…
A federal government income tax was introduced in 1915, in addition to existing state income taxes, to finance involvement in the First World War. The tax was designed by the Australian statistician, Sir George Knibbs, and was levied on individual taxpayers at progressive rates. Although rates of tax imposed ranged from 3% – 25% the…
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2