Case Study | ATO Audit Turnaround: How Vale Legal Secured a $482,500 Tax Refund in a Residency Dispute
Outcome Vale Legal successfully resolved a complex Australian Taxation Office (ATO) audit, resulting in the client receiving a refund of $482,500, being the full foreign resident capital gains withholding amount that had been held by the ATO. The audit was finalised swiftly, with no penalties imposed, after the ATO accepted that the client was an […]
Navigating the ATO’s New GIC Remission Regime: What Taxpayers and Advisers Need to Know
The ATO’s new GIC remission regime fundamentally changes how taxpayers and advisers must approach interest and penalty relief, with standardised forms, centralised decision‑making and clearer (but tighter) guidance on when relief will be granted. This blog outlines what has changed, how it links to the recent Tax Ombudsman review, and where to find the key […]
Early Stage Innovation Company (ESIC) Tax Concessions
Qualifying for the ESIC concessions A company will be an early stage innovation company at a particular time (the “test time”) in an income year if all of the following are met: 1. Early Stage: At the test time, the company must satisfy all of: the company was: incorporated in Australia within the last 3 income years, or incorporated within the […]
Family Law: Navigating SMSFs, Div 7A, Tax and Insolvency Issues
When couples separate, dividing assets is rarely just a legal exercise. Tax consequences can significantly impact the real value of a financial settlement, particularly where assets such as property, companies or trusts are involved. Understanding the tax implications early can help avoid unexpected liabilities and ensure settlements are structured effectively. Below are some of the […]
Intra Group Service Fees Not Deductible
The Full Federal Court in Commissioner of Taxation v S.N.A Group Pty Ltd FCAFC 10 (handed down on 17 February 2026) held that service fees paid to related entities for access to intellectual property, rent rolls and staff were not deductible principally because of the lack of documentation supporting the fees. S.N.A Group was part […]
Director Penalty Notices Explained: When Company Tax Debts Become Personal
A Director Penalty Notice (DPN) makes a director of a company personally liable for: Pay As You Go (PAYG) withholding tax Superannuation Guarantee Charge (SGC) Goods & Services Tax (GST) You cannot be made personally liable for income tax or the penalties and interest payable by the company. There are two types of DPNs: Non-Lockdown […]
NSW Land Tax & Unit Trusts: December 31 Deadline Approaching
December is the last chance to act to take advantage of the Land Tax threshold in NSW. In NSW the rate of land tax for 2026 is: Threshold Rate $1,075,000 $100 plus 1.6% above $1,075,000 up to premium threshold. Premium Threshold Rate $6,571,000 $88,036 plus 2% of the land value $6,571,000. Being able […]
Superannuation Guarantee: What Employers Need to Know
Missed or late super payments are a top ATO concern, especially with the super guarantee rising to 12% from July 2025. Background The Australian Taxation Office is closely monitoring employer compliance with the Superannuation Guarantee. Employers must ensure contributions are made on time and lodged correctly, allowing sufficient time for payments to clear and be […]
ATO Reviews and Correspondence
Proactive engagement with the ATO is critical, as early, thorough responses not only demonstrate a genuine intention to comply but can also prevent audits, minimise scrutiny, and significantly reduce ongoing compliance risks. Background The ATO has received nearly $1 billion in extra funding to increase audits, debt recovery and compliance enforcement. This means businesses and […]
Division 7A: Key Issues for Accountants in 2025
Division 7A continues to be a high-risk area for private groups and family businesses. The ATO’s attention on private company loans, unpaid present entitlements (UPEs), and related-party arrangements is sharper than ever. Accountants need to ensure compliance to avoid unintended deemed dividends and associated tax consequences. Key Areas to Watch 1. Unpaid Present Entitlements and […]