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Tax Confidential

Discussion in 'Accounting & Tax' started by Francesco, 14th Apr, 2016.

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  1. Francesco

    Francesco Well-Known Member

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    There is a new service providing advice on legal tax minimisation. It is published as 'Tax Confidential' by Fitzroy Publication. The author goes with the pen name of Jack Box was an auditor with the Tax Office.

    The start price for a 117 page dossier is $349 with annual cost of $39 to update the dossier.

    Has anyone used it and recommends it? Being pressured in my free time, I am quite inclined to give it a try unless there is reason not to.
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I would never recommend advice from a former ATO staffer especially if its described as tax minimisation. Looks like a flim flam mans ad (snake oil). All such issues require personal context and books never give that and can mislead. It can only be general info or broad based. The Taxpayers Association annual book is a far better buy for a taxpayer to get knowledge.

    Are they a registered tax practitioner ?? Often not. The TPB generally refuses to register ATO staffers as they lack broadbased knowledge and qualifications to practice in tax. Especially auditors !!! The website looks like a spruiker job. I wouldn't recommend it. It makes extravagent claims of tax savings. Its probably based on dumping all assets in super etc.....Thats no secret. May even be unlicensed financial advice. Jack cant be insured if he is anon can he ?

    I dont know Jack In The Box and havent read it. I may be wrong. But my professional experience suggests it not going to save you $375,000 on balance of probabilities. But such marketing could easily arouse ATO curiosity enough to issue a s264 Notice for details of all buyers of the service. You dont want that.

    Put your cash in your pocket. If I told you I can save you $375,000 in tax would you give me $390? Same same. I dont know if I can save you $1 until I advise on your situation.

    It may well be non-deductible too.

    Dossier... ebook ?
     
    Last edited: 14th Apr, 2016
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  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Jack Box doesn't want to use his real name ?
     
  4. Perthguy

    Perthguy Well-Known Member

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    I had the same impression as you. If you go to the page with the bold heading:

    Little Known, 100%
    Legal Ways to Slash
    Thousands of Dollars
    off Your Annual Tax Bill
    REVEALED IN THIS ASTONISHING REPORT​

    The contents are not something I would expect to see in a legit publication.

    Let's just look at one of the claims:-

    Sleep just ONE NIGHT in your investment property – and legally save up to $37,000 in Capital Gains Tax... learn why this simple work-round might be the most lucrative night of your life...​

    That's a worry for a start. If you sleep in your investment property for one night for the sole or dominant purpose of obtaining a tax benefit, you could risk being charged with tax avoidance under Part IVA of the ITAA. You also would not be eligable if you already have a main residence because you can only have one main residence at a time (except for when moving from one to another where there can be a 6 month overlap).

    It is possible the information is better quality than the script would indicate and that it has just been written up to appeal to a certain class of customer.

    The way it has been written doesn't appeal to me at all. It is basically a string of red flags.

    If I was looking to buy, I would be more inclined to spend my money on something like The CCH Australian Master Tax Guide 2016:-

    Australian Master Tax Guide 2016 - 58th Edition (eBook)
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Well said.

    Main residence doesn't mean one night. There is no one night test in law. Reside and occupy are very very different. s118-135 requires you to "move into it"....not stay one night in it. In any event Part IVA could certainly apply to such a scheme and the taxpayer argument would be costly and difficult. The onus solely on the taxpayer and it could become one of those silly AAT appeals that accountants find funny. Easily argued as being liable for penalties at the higher levels. And if it was a newly constructed house etc the position would be totally incorrect.

    Perhaps it is better written than the sales blurb. But I would argue the views of Gordon Cooper on CGT well above those of a former ATO auditor who doesnt use their real name.

    The ATO deal with this issue so often they have a dedicated webpage dealing with objections to main residence issues. : It explains so many exceptions to the basic exemption.
    Main residence exemption | Australian Taxation Office
     
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  6. mcarthur

    mcarthur Well-Known Member

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  7. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    ?? Whaaa. Isnt this posting to a different thread ?