Tax advice
We provide expert, timely and clear advice on a range of difficult tax issues including international tax issues, income tax, CGT, GST, withholding taxes, fringe benefits tax, payroll tax, stamp duty, land tax.
Where matters require certainty, in many circumstances we can apply for private rulings to lock in the Commissioner’s view on how a tax law applies to specific circumstances.
What we do
We help clients with tax advice in relation to:
Payroll tax
Payroll tax has been around for a long time – it was initially introduced as a Federal tax during WWII. However, it is one of the most regularly misunderstood and misapplied taxes. The law is often counterintuitive and the consequences of missing a payroll tax issue can be significant for businesses, including because it is a tax on wages as opposed to profit.
Common payroll tax problems include:
Missing grouping issues
There are rules that group businesses together for payroll tax purposes. Whether there is a single payroll tax group affects:
- whether entities must be registered for payroll tax, because the registration threshold is the group’s combined taxable wages (not the individual entity)
- the amount of payroll tax that must be paid – the deduction is only available to one entity in the group, rather than each employer
- entities’ liability for payroll tax, because each entity in a payroll tax group is jointly and severally liable for unpaid tax liabilities.
Assuming that payroll tax only applies to salary and wages paid to employees
Payments to independent contractors are often wages for payroll tax purposes under the relevant contract provisions. However, there are a number of exemptions that may apply.
Missing employment agent arrangements
Genuine subcontractor arrangements may be ‘employment agency contracts’ for payroll tax purposes. These provisions are broad and capture more than orthodox labour hire arrangements.
Services agreements not producing the expected payroll tax consequences
Many business arrangements, including medical practices, have been structured in a way that assumes there is no payroll tax liability for the practice entity for payments paid to the professionals. The State revenue authorities’ positions have changed, and we often see the arrangements not applied consistently, which creates a payroll tax risk.
How we help
We help taxpayers and their accountants or lawyers by advising on payroll tax issues including:
- payroll tax consequences of business structures;
- payroll tax grouping consequences;
- applying for orders excluding members of a payroll tax group;
- contractor arrangements, including reviewing contractor agreements;
- evidence that taxpayers need to keep in relation to relevant contract exemptions;
- employment agency contracts.
We also help taxpayers and their advisers manage payroll tax disputes during audits and investigations, objections, and appeals to the State courts and tribunals.
Income tax and capital gains tax
We advise on a range of domestic income tax and capital gains tax issues including:
- when income is assessable for a taxpayer
- whether an expense is an allowable deduction
- commercial debt forgiveness
- family trust election issues
- small business CGT concessions
- Division 7A
- section 100A reimbursement agreements
- allocations of profits for professional firms
- employee share schemes
- tax consequences of employment termination payments
- taxation of trusts, both Australian and foreign (section 99B)
- the general anti-avoidance rules
- specific anti-avoidance rules such as dividend stripping
- whether amounts are taxed on capital or revenue account
- tax treatment of compensation payments
- employer taxes like PAYG, superannuation and fringe benefits tax
- tax consequences of out-of-court settlements
- research and development issues
- direct and indirect value shifting
- foreign exchange gains and losses.
We assist clients with international tax issues such as:
- the residency of individuals, companies and trusts
- temporary residents
- the tax consequences for individuals, companies and trusts either becoming Australian tax residents, or becoming non-residents
- transfer pricing
- thin capitalisation
- country by country reporting
- the application of double tax agreements and the multilateral instrument to taxpayers’ circumstances
- whether particular activities in Australia constitute a permanent establishment
- withholding tax on royalties, interest and dividends
- foreign hybrids
- controlled foreign companies
- transferor trusts
- conduit foreign income.
Stamp duty
Duty is often a significant cost of doing business, and the law is different in each State and Territory.
We help taxpayers and their advisers by:
- advising on duty consequences of a broad range of transactions;
- advising on landholder duty issues;
- applying for rulings about particular acquisitions being exempt from duty under the corporate reconstruction exemption;
- challenging duty assessments in objections, and appeals of unfavourable objection decisions.
GST
We help clients and their advisers with various GST issues, including:
- advising on the GST treatment of supplies, including whether supplies are taxable, input taxed, GST-free or outside the scope of GST (ideally before a deal is agreed)
- reviewing and drafting complicated GST clauses to manage risks, or deal with various scenarios
- advising on when an entity is required to be registered for GST, and when an entity is required or permitted to deregister for GST
- advising on the GST margin scheme
- the GST consequences of settling a dispute (and how to draft the GST clause of the settlement deed)
- GST withholding obligations
- advising on the requirements for a supply of a going concern.
Land tax
We help landowners and their advisers with a range of land tax issues, including:
- primary production exemptions
- home exemptions
- exemptions for charitable institutions
- land tax foreign surcharge.
Managing debts
It is important that taxpayers engage with the ATO early if they cannot pay their tax liabilities, in full and on time. It can be difficult to defend debt recovery proceedings by themselves because an assessment is conclusive evidence of the amount of tax (and penalties and interest) that is owed, and that the assessment was properly made.
Where the amount of the assessment is disputed, we manage both sides of the matter – we work with clients to exercise their objection and appeal rights, and also negotiate arrangements to defer the recovery of the assessed liabilities.
Where the tax liability is correct, we can assist by:
- requesting that the Commissioner remit certain penalty and interest charges
- advising and negotiating payment arrangements
- requesting that garnishee notices are withdrawn or varied.
We also advise and represent directors to defend director penalty liabilities that are enforced once a director penalty notice is served.
Who we help
We help all taxpayers and their advisers (such as accountants, lawyers, and financial planners) with a wide range of tax matters. Our clients include:
- family groups and high net wealth individuals, including those with wealth in Australia and interests overseas, collaborating alongside foreign advisers as needed
- Australian-based corporations and international corporations with business interests in Australia
- property developers
- small to medium enterprises (SMEs)
- accountants
- lawyers
Our team
Your tax law experts
Our Brisbane based tax lawyers use their expertise to provide clear advice and identify solutions. We are here to help, whether you require specialist advice, our assistance with review or audits, or are in a dispute with the ATO or State revenue authorities.
Our principals have been recognised as leading tax lawyers by Doyle’s Guide and Best Lawyers.