New taxpayer alerts on incorrect R&D claims that are attracting our attention.
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We've released 2 new taxpayer alerts to warn entities and their advisers about our concerns regarding incorrect Research and Development (R&D) tax incentive arrangements we’re reviewing. These alerts are about expenditure incurred to associated entities and activities conducted overseas for foreign related entities.
We’re concerned these arrangements are being used to:
claim the R&D tax offset in situations where it would not otherwise be available, either at all or in the income year claimed by the R&D entity
artificially increase the amount of the R&D tax offset claimed.
We encourage you to read these alerts and consider if your clients need to contact us or make a voluntary disclosure by amending their R&D tax incentive claim.
Penalties may apply to participants of these types of arrangements. These penalties can be significantly reduced if the amendment request is treated as a voluntary disclosure. Generally, the reduction is greater if the disclosure is made before being notified of an examination of your client's tax affairs.
About the alerts
Taxpayer Alert TA 2023/4 Research and development activities delivered by associated entities. We’ve identified arrangements where an entity incorrectly claims the R&D tax offset for expenditure incurred under an agreement with an associated entity who conducts those activities.
Taxpayer Alert TA 2023/5 Research and development activities conducted overseas for foreign related entities outlines our concerns about arrangements where Australian entities claim the R&D tax offset for expenditure incurred on R&D activities conducted overseas. Arrangements of concern include where an R&D entity has purported that R&D activities were conducted for its own benefit, but those activities were instead conducted for a foreign entity that is ‘connected with’, or is an ‘affiliate’, of the R&D entity.
To provide information about this or another type of arrangement, or about a promoter of this or another arrangement, you can:
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Accounting & Taxation
We believe accounting services should be straight forward and stress-free. By providing cutting edge bookkeeping, accounting, taxation and financial solutions and using the right products for your record keeping, our team at Milton Advisory will work with you to understand your needs and help you achieve your goals, making it easier for you to manage your cash flow and meet your tax obligations.
While fiscal compliance is of the upmost importance, we at Milton Advisory also believe in offering management advice and support at all levels of our services. We are committed to offering the highest level of friendly and professional service and welcome the opportunity to work with you.
Choosing your business structure is an important decision and Milton Advisory can consult with you and suggest the best structure for your business. There are four main business structures commonly used by small businesses in Australia. They are:
Sole trader: an individual operating as the sole person legally responsible for all aspects of the business. Like other structures, as a sole trader you can employ people to help you run your business. The structure is inexpensive to set up because there are few legal and tax formalities. Partnership: an association of people or entities running a business together, but not as a company. A partnership is relatively inexpensive to set up and operate. Company: a legal entity separate from its shareholders. It is a complex business structure, with set-up and administrative costs that are usually higher than for other business structures. Trust: an entity that holds property or income for the benefit of others. Trusts require a formal trust deed that outlines how the trust operates, require the trustee to undertake formal yearly administrative tasks and if you operate your business as a trust, the trustee is legally responsible for its operations. A trustee of a trust can be a company, providing some asset protection.
Companies and Trusts are more complicated business structures but they have their advantages and Milton Advisory can discuss these with you. It is important to note that you can change your business structure throughout the life of your business.
Milton Advisory has the experience and understanding of the legal and regulatory framework that applies to business entities and we can help you understand the myriad compliance programs and regulated obligations that affect your business/company. We will make sure your business/company meets all its obligations to ASIC (Australian Securities & Investments Commission), the ATO (Australian Taxation Office) and the SRO (State Revenue Office of Victoria). Compliance is of paramount importance but we also believe that management advice and support is a crucial aspect of corporate accounting.
We can assist with:
The formation of trusts and new company registrations
Preparation of annual company statements
Attending to ASIC returns and regular filings on your behalf
Any company changes or change of directors
Business name registrations and maintenance
Renewal of business name/s and other registrations
Preparing meeting minutes and drafting resolutions
Share allotments/transfers/buy-backs
Unit Trusts and allotment/transfer of units and change of Trustee
Family Trust set up and change of Trustees
Provision of registered office services for service of notices
Wealth creation, management and protection is a team sport. You need your team to consist of competent professionals and a high quality, well qualified and experienced financial planner should be top of the list.
A client needs to put in place the right strategies and structures, to create and protect wealth and then review these strategies and structures on a regular basis. That is because your circumstances and goals will change and so will the economy and the legislation relating to how your affairs are structured.
Milton Advisory maintain a close relationship with a local financial planner who we trust to help you navigate this important side of your finances.
Setting up a Self-Managed Superannuation Fund is a major financial decision. We understand that you’re busy and that the SMSF rules are complicated. We will provide you with an end to end solution giving you access to all the support and expertise you need to ensure your SMSF is well managed and compliant.
A SMSF can have many advantages but, equally, you need to consider the reasons why a SMSF may not suit your needs. We can help you decide if this is the right option for you.
Advantages of a SMSF:
Having control of your retirement savings can lead to a deeper understanding of how your overall wealth is tracking, and gives you more confidence in your investment and lifestyle decisions.
You can have access to a broader range of investments. You can invest in the usual options such as shares, term deposits, managed funds and property but you can also hold alternative assets such as artwork, jewellery, antiques, and wine. There are though, very strict rules on holding the latter assets in your self-managed super fund.
You retain control while still being able to take advice from your advisors.
Beneficial tax planning strategies.
Greater flexibility for accessing Centrelink benefits such as the age pension.
But a SMSF is not for everyone:
If you have set up a self-managed super fund (SMSF), you are in charge and you make the investment decisions for the fund. You must also be aware that you are responsible for complying with superannuation and tax laws, maintaining records, providing financial statements, completing tax returns and organising an annual independent audit.
You also need time and expertise to run your SMSF.
Compliance is very important.
There can be up to 4 Trustees and their thoughts and ideas have to be included.
The ATO offers advice on the responsibilities of having a SMSF.
Milton Advisory offers advice on all SMSF services, including:
The setting up of a SMSF and all administration tasks such as preparation of your trust deed and the completion and lodgement of relevant ATO statements.
Superannuation consolidation.
Ensuring your SMSF is compliant with current superannuation laws and regulations
Advice on life and disability Insurance options.
If there is more than one member in your SMSF, we can offer advice on what will happen in the event of ill health, death, relationship breakdown, or waning interest.
Secure File Transfer is a facility that allows the safe and secure exchange of confidential files or documents between you and us.
Email is very convenient in our business world, there is no doubting that. However email messages and attachments can be intercepted by third parties, putting your privacy and identity at risk if used to send confidential files or documents. Secure File Transfer eliminates this risk.
Login to Secure File Transfer, or contact us if you require a username and password.
General Disclaimer
The information provided on this website is for general guidance only and should not be used as a substitute for professional accounting advice. While we strive to ensure the accuracy and reliability of the information presented, we cannot guarantee its suitability or applicability to your specific circumstances.
This website and its contents are provided on an "as is" basis without warranty of any kind, express or implied. We disclaim any liability for any damages or losses arising from or connected with the use of this website or its contents, including but not limited to:
Any errors or omissions in the information provided
Any damages or losses resulting from reliance on the information provided
Any viruses or other malicious code that may infect your computer or device
Our website may contain links to external websites or resources. We are not responsible for the content or accuracy of these external sites, and we do not endorse or guarantee their quality or reliability.
By using this website, you acknowledge that you have read, understood, and agree to be bound by this disclaimer. If you do not agree to these terms, please do not hesitate to contact us.
Privacy Policy
Milton Advisory is committed to providing quality services to you and this policy outlines our ongoing obligations to you in respect of how we manage your Personal Information.
We have adopted the Australian Privacy Principles (APPs) contained in the Privacy Act 1988 (Cth) (the Privacy Act). The NPPs govern the way in which we collect, use, disclose, store, secure and dispose of your Personal Information.
A copy of the Australian Privacy Principles may be obtained from the website of The Office of the Australian Information Commissioner at https://www.oaic.gov.au/.
What is Personal Information and why do we collect it?
Personal Information is information or an opinion that identifies an individual. Examples of Personal Information we collect includes names, addresses, email addresses, phone and facsimile numbers.
This Personal Information is obtained in many ways including correspondence, by telephone and facsimile, by email, via our website www.miltonad.com.au, from your website, from media and publications, from other publicly available sources, from cookies and from third parties. We don't guarantee website links or policy of authorised third parties.
We collect your Personal Information for the primary purpose of providing our services to you, providing information to our clients and marketing. We may also use your Personal Information for secondary purposes closely related to the primary purpose, in circumstances where you would reasonably expect such use or disclosure. You may unsubscribe from our mailing/marketing lists at any time by contacting us in writing.
When we collect Personal Information we will, where appropriate and where possible, explain to you why we are collecting the information and how we plan to use it.
Sensitive Information
Sensitive information is defined in the Privacy Act to include information or opinion about such things as an individual's racial or ethnic origin, political opinions, membership of a political association, religious or philosophical beliefs, membership of a trade union or other professional body, criminal record or health information.
Sensitive information will be used by us only:
For the primary purpose for which it was obtained
For a secondary purpose that is directly related to the primary purpose
With your consent; or where required or authorised by law.
Third Parties
Where reasonable and practicable to do so, we will collect your Personal Information only from you. However, in some circumstances we may be provided with information by third parties. In such a case we will take reasonable steps to ensure that you are made aware of the information provided to us by the third party.
Disclosure of Personal Information
Your Personal Information may be disclosed in a number of circumstances including the following:
Third parties where you consent to the use or disclosure; and
Where required or authorised by law.
Security of Personal Information
Your Personal Information is stored in a manner that reasonably protects it from misuse and loss and from unauthorized access, modification or disclosure.
When your Personal Information is no longer needed for the purpose for which it was obtained, we will take reasonable steps to destroy or permanently de-identify your Personal Information. However, most of the Personal Information is or will be stored in client files which will be kept by us for a minimum of 7 years.
Access to your Personal Information
You may access the Personal Information we hold about you and to update and/or correct it, subject to certain exceptions. If you wish to access your Personal Information, please contact us in writing.
Milton Advisory will not charge any fee for your access request, but may charge an administrative fee for providing a copy of your Personal Information.
In order to protect your Personal Information we may require identification from you before releasing the requested information.
Maintaining the Quality of your Personal Information
It is an important to us that your Personal Information is up to date. We will take reasonable steps to make sure that your Personal Information is accurate, complete and up-to-date. If you find that the information we have is not up to date or is inaccurate, please advise us as soon as practicable so we can update our records and ensure we can continue to provide quality services to you.
Policy Updates
This Policy may change from time to time and is available on our website.
Privacy Policy Complaints and Enquiries
If you have any queries or complaints about our Privacy Policy please contact us at:
