The Tax Preparation Blog

Archive for December, 2006

19 Indicted In Cybercrimes Investigation & Midday Roundup

An indictment returned in Dallas names 19 people in an alleged $15 million international cybercrimes conspiracy scam.

HST Tax Revolt BC Canada Votes 2009

Question: Do we have tax lien sales in the UK?

In Rich dad poor dad, Robert Kiyosaki explains how in the states you can buy tax liens, whereby you pay the outstanding tax bill on a property and are paid a guaranteed high interest on this debt by the property owner in return for the 1st title on the property. This would mean that if the owner defaults on interest payments you could end up owning the house for the cost of the tax bill and receive a high return on your money in any other case. Is this possible in the UK? Do the goverment sell tax debt here too?

Answer: No. Here in the UK individuals are made insolvent and their assets are sold off at market value if they are unable to pay their tax bills.

(AFX UK Focus) 2010-01-07 20:43 Wells Fargo mortgage case in Baltimore dismissed

By Jonathan Stempel

Roger Boorman | Money Gym Property Extravaganza!

Antler Creek Energy Corp Files Q1 Reports

CALGARY, ALBERTA–(Marketwire – Jan. 8, 2010) – Antler Creek Energy Corp (“Antler Creek” or the “Corporation”) (TSX VENTURE:AFE) is pleased to release the unaudited financial statements and management discussion and analysis for the three months ended October 31, 2009. The Corporation is a junior oil and gas exploration company whose focus is to explore for and develop oil and gas assets in high …

IRS proposes stronger regulations for tax preparers

The IRS has proposed a broad initiative that would require hundreds of thousands of tax preparers to register with the government, pass a competency exam and adhere to ethical standards.

Question: Any Australian/International tax experts out there?

I am an accountant in Australia, with Australian based clients. I have access to an offshore accounting department to outsource the monkey work as it is much cheaper that way (about $10AUD per hour). Currently I get the work off the client then forward it overseas, they do the financial statement work, charge me and in turn I complete the tax return and charge my client in full. I am assessable on the whole turnover and must charge govt GST (VAT) at 10% as well. What if instead i setup say a Seychelles company and sell my financial practice to it (not the tax work), then all accounting work is performed offshore by an offshore company. I would merely act as local billing agent of the company to collect the fees. Would this income have no connection with Australia and therefore be tax free in Aus? I would still have to personally charge clients for completing tax returns in Aus due to legislative requirements, but this only accounts for 5% of my income. What do you think?

Answer: Australian residents are taxable on their share of income from a Controlled Foreign Company even if there are no distributions of profit made to them. You need to be aware of the CFC measures and the control tests .

http://www.ato.gov.au/individuals/content.asp?doc=/content/00096965.htm&page=8&H8

http://law.ato.gov.au/atolaw/view.htm?locid=’PAC/19360027/340′

Also, If a non-resident entity acts through an agent resident in Australia, the agent is responsible for the GST consequences.

The ATO have issued a lot of press releases lately about their focus on offshore tax evasion, so you might want to read up on how they trace the flow of funds, ownership and control of Australians’ foreign companies too:

http://www.ato.gov.au/large/content.asp?doc=/content/46908.htm&page=33&H33

I would be a little concerned if my accountant was sending my information overseas – re privacy and identity theft. I don’t know much about doing this sort of thing but if I was the accountant I’d be worried about being sued if one of my clients had problems and I couldn’t prove that they had, in full knowledge, authorised the arrangement. Interesting idea.

Cheers

What’s new on the business scene

Accounting firm names supervisor — Donna Crowley was promoted to audit supervisor at the public accounting firm of Vanacore, DeBenedictus, DiGovanni & Weddell. The Wallkill resident joined the firm in September of 2005. From 1986-1990, she attended the State University of New York at Binghamton’s School of Management. Vanacore, DeBenedictus, DiGovanni & Weddell has offices in Newburgh and …

Property Tax International – Protect Your Investment