FBT benchmark interest rate for 1998/98 - The benchmark interest rate for the FBT year commencing 1 April 1998 is 6.70%. This is the rate used to calculate the taxable value of loan fringe benefits and is also used for calculating car fringe benefits under the operating cost method, TD98/6.
Dividend and franking credit anti-avoidance proposals outstanding from 1997 Budget - The ATO advises that the proposed dividend and franking credit anti-avoidance measures dealing with proposed debt dividend rules for trusts and the related payments rule that are still outstanding from last year's Federal Budget, should be included in Taxation Laws Amendment Bill (No 5) 1998, which is likely to be introduced in the Winter Sittings of Parliament.
Managing director was employee for PAYE purposes - The Full Court of the Western Australian Supreme Court has held that a managing director who had his remuneration paid to a private company was an employee, and his remuneration was subject to the PAYE provisions. The Full Court rejected the argument that Southern Group Ltd contracted with the private company and not with the managing director. (Southern Group Ltd v Smith).
Self-education expenses: insufficient nexus with assessable income - The AAT has held that course fees in relation to a hotel management course were not an allowable deduction. The AAT held that the deduction claim failed to the extent that the assessable income to which the expenditure is said to be directed is the future income from employment at the successful completion of the course.
Travel costs did not have required nexus - The Small Taxation Claims Tribunal held that costs of travel to a place of medical treatment for a work related injury did not have the required nexus with the derivation of assessable income and were of a private or domestic nature, (Rossitto v FC of T).
New ruling on deductibility of laundry expenses - TR98/5 was issued and sets out the rules for calculating and claiming a deduction for laundry expenses.
Tailored TaxPack for 1998 - The Tax Commissioner announced that the 1998 TaxPack will be shorter and tailored to the needs of different individual taxpayers. TaxPack is due for release in June 1998.
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