The Australian Government announced in its Budget that it would be bringing forward personal tax cuts that had been scheduled for 2022.
The Australian authorities additionally unveiled new reliefs for businesses, announcing that from October 6, 2020, until June 30, 2022, businesses with turnover up to AUD5bn will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed. The cost of improvements to existing eligible depreciable assets made during this period can also be fully deducted.
The Government also outlined plans for enhanced incentives for research and development, and revealed that companies with turnover up to AUD5bn will be allowed to offset losses against previous profits on which tax has been paid, to generate a refund.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look
In the UK, while things are gearing up to get more complicated on pretty much all fronts, the tax authority sought to provide clarity certain aspects of the VAT rules, including with regard to the new reverse charge regime for the building and construction industry, now set to come into force in March 2021. (Originally due to be in place from October 2019, the measure had been postponed to October 2020. But now here we are, so…)
HM Revenue and Customs released three publications offering in-depth guidance on the introduction of the VAT reverse charge mechanism on the supply of building or construction services.
Under the new regime, in order to remove the possibility of “missing trader” fraud, a VAT-registered business which supplies certain construction services to another VAT-registered business for onward sale will be not be required to account for VAT, … Read More »
In Australia, the ATO is highlighting non-compliance by some businesses with the rules regarding eligibility for providing JobKeeper payments.
The JobKeeper Payment scheme is a temporary wage subsidy for businesses significantly affected by COVID-19. The ATO explained that although the majority of large businesses are doing the right thing, a small number have been identified that may have manipulated their projections or financial positions to access JobKeeper payments they aren’t entitled to receive.
The tax authority went on to reveal that it has also found that some businesses have not kept adequate records to support their enrolment in the scheme. The ATO therefore stated that it was encouraging businesses to review its guidance on eligibility for JobKeeper payments and on the records that should be maintained, and urged them to contact it for assistance if they have made an honest mistake or … Read More »