Scam Red Flags in Crypto
Author: Joshua Ho It’s never easy to navigate the world of crypto, whether you are new to the space (a “normie”) or a seasoned investor. We observed an explosion in crypto scams as the market peaked at the end of 2021. On the surface the occurrence seemingly reduced in 2022. However, fraud-related enquiries to our team has increased over recent months. New York based Chainanalysis reported that cryptocurrency-based crime hit an all-time high in 2021, rising 79 percent to $USD 14 billion. It was found that $USD 7.8 billion worth of cryptocurrency was stolen globally in 2021. Of the $USD 7.8 billion, $USD 3 billion was stolen in 2021 in a type of scam known as “rug pull”. As the [...]
TAX MATTERS: Changes to car parking treated as a FBT benefit
It’s getting closer to the time that FBT returns need to be lodged, so it’s important to understand that there may be a change to the FBT liability of your business when it comes to one employee benefit. FBT applies to parking provided by employers to their employees where there is alternative parking available commercially. A recent ruling on how car parking is treated as a FBT liability came into effect on April 1 this year. The ruling should assist in reducing the potential FBT burden on some employers and perhaps be an incentive for bringing employees back into the workplace. Car parking as a FBT benefit is provided on a particular day when, between 7.00am and 7.00pm: a car [...]
SMSF MATTERS: An equal investment of money and effort
One of the benefits of establishing or opting for a SMSF is the control given over where the money is invested. It also comes with specific administrative responsibilities to keep you and your fund compliant and protected. A SMSF undoubtedly requires an ‘attention to detail’ approach. It is important to create and follow an investment strategy that will help manage the SMSF and this will need to be updated regularly depending on the performance of the SMSF. When creating an investment strategy, it is important to assess the risk and plan ahead for retirement, which can be difficult if one is not equipped with the necessary knowledge. In terms of legal knowledge, complying with tax, super and other relevant regulations [...]
SMSF MATTERS: Minimum pension drawdown may have a double edged sword
While it is a great outcome to keep as much of your money in your super as is possible, you do need to be conscious that at some point, the remaining balance may be passed onto the next generation, potentially as a part of their inheritance, with a tax liability. When this money does change hands and is given to the next generation, if the superannuation balance includes a taxable component, then your children may be subject to as much as 17% tax on the capital value of that balance. Different tax treatments can apply depending on whether your super is being paid as a lump sum, income stream or mixture of both, and if your beneficiary or beneficiaries are [...]
TAX MATTERS: A re-address of family trust distributions
The ATO has released draft guidance on family trust distributions, where they perceive a tax benefit arises under a ‘reimbursement arrangement’. Essentially, the documentation sets out ATO’s ‘preliminary but considered’ views where they perceive a tax benefit arises under a ‘reimbursement arrangement’. If the guidance becomes the new approach, it will greatly impact how a trust pays distribution and to whom. The ATO focus includes distributions from trusts where the tax is paid by one individual (who is usually a low-income earner), but the economic benefit of the distribution is obtained by someone else (who is usually a higher income earner). Example There is a trust that benefits the Green family, consisting of two parents and two children (who are [...]
Have you hired an employee or a contractor?
Hiring an independent contractor may seem like a simpler method than hiring a full-time or part-time employee for a business. Or is it? This is because there is a general assumption that, if hiring an independent contractor, they will not be responsible for PAYG withholding, superannuation guarantee payments, payroll tax and workers' compensation obligations. This is not always the case. Each set of rules operates slightly differently, and it may be necessary to address this distinction in a case by case scenario. For those who may be struggling to work out if they have correctly classified their contractors as employees, it will be important to review their agreements to ensure that the “rights and obligations of the parties under that [...]