The government has released a raft of draft legislation with the intention of reducing FBT record-keeping compliance costs for employers. The measure was originally announced by the previous government in the 2020 Budget but never implemented. In brief, it proposed to give the ATO the power to allow employers to rely on existing corporate records, rather than employee declarations and other prescribed records to finalise their FBT returns.

The ATO has released an updated version of its online Guide - Market valuation for tax purposes. The purpose of the Guide is to assist taxpayers in understanding the ATO’s general expectations on market valuation for tax purposes. It includes information on what market value means for tax purposes and the evidence and processes the ATO generally expect to see to support a valuation.

If the recent market conditions or just the amount of administration involved is making you rethink having an SMSF as your retirement vehicle, there are several things you will need to be aware of. Winding up an SMSF is not a simple process and requires the trustee to understand the terms set out in the trust deed, dispose of the fund’s assets, and finalise compliance obligations, among other things. In some complex cases it may be prudent to seek professional advice.

The Australian Securities and Investment Commission (ASIC) has warned small businesses to be alert for payment redirection scams. These scams typically involve scammers impersonating legitimate businesses or their employees and operate via email by requesting an upcoming payment be redirected to another bank account which is fraudulent.

You are legally required to keep records of all transactions relating to your tax and superannuation affairs as you start, run, sell, change or close your business, specifically:

• any documents related to your business's income and expenses;
• any documents containing details of any election, choice, estimate, determination or calculation you make for your business's tax and super affairs.

If you run a professional services firm there are many tax issues to consider in the allocation of profits. The ATO is particularly concerned about individual professionals with an ownership interest who redirect their income to an associated entity, such as a trust, with the effect of significantly reducing their tax liability – raising the prospect that anti-avoidance provisions could apply.