Tax Planning - 30th April 2014

There are many ways in which entities can defer income, maximise deductions and take advantage of other tax planning initiatives to manage their taxable incomes. Taxpayers should be aware that in order to maximise these opportunities, they need to start the year-end tax planning process early. Of course, those undertaking tax planning should be cognisant of the potential application of Pt IVA and any other anti-avoidance provisions. However, if done correctly, tax planning can provide a number of tax savings for entities.


Common tax planning techniques include deferring the derivation of assessable income and bringing forward deductions. It is equally important that consideration be given to any pending changes to the tax legislation, especially when a proposed amendment will be backdated.


Another important consideration is the effect of last year's change in government, with the new Coalition government flagging an agenda to help businesses and to cut regulatory "red tape". The Coalition government has also announced that it will abolish or curtail a number of tax and superannuation concessions as part of its proposed repeal of the mining tax (which some commentators have indicated is unlikely to pass until after July 2014). The new government has also confirmed its position in relation to a number of announced but unenacted tax- and superannuation-related measures. In this regard, tax practitioners should stand ready to respond to possible changes in the pipeline.

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