Thursday 15 Nov 2018
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Fringe Benefits Tax (FBT): employees’ private use of vehicles
ATO to contact clients over bank details
ATO claws back $850m in unpaid SG in FY 17-18
Appetite for property in SMSFs shows signs of life despite tough market
Superannuation gender gap narrowing, research shows
Identification numbers for directors
How financial advice helps create wealth.
Australia's vital statistics
Unlocking equity crowdfunding in Australia
$20m boost for SME clients looking to exporting
Work-Related Expenses
ATO updates crypto guidance
ATO zones in on hundreds of newly created reserves
Senate passes $20,000 instant asset write-off extension
Victorian Vacant Property Tax
Director Penalty Notices
ATO set to pounce on undisclosed income streams
In case you missed it – The company tax Bill that did pass Parliament.
GST spotlight headed to smaller end of town
Superannuation Amnesty – Maybe! Maybe Not!
ATO drills in car-sharing focus this tax time
What is Bankruptcy?
Update of Australia's vital statistics
ATO speaks on risk factors, surveillance triggers for FY19
ATO’s corporate residency guidance cops backlash
ATO dispels top tax time myths to clients as clampdown rolls out
Tools for budgeting, cash flow, Super and more ….
Guidance for SMSFs on transfer balance reporting
ATO issues alert on super, tax scams
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Articles
Sale of Goods, Retention of Title - Protection?
Boost for tax data-matching.
Extra online support from your Accountant
2013-14 Federal Budget at a Glance
Overview of the 2013-14 Federal Budget
Full version of the Federal Budget speech for 2013-14
Off-Market Share Transfers - $50 FEE
The big super split
Easy Ways to make a Tax Payment
Refund Cheque from the Australian Taxation Office - not likely!
For those clients who like to do some extra research.
Tax Help for Bushfire and Flood Affected Areas
Creditors Awarded Damages after Director's Breach of Duty
Off-Market Share Transfers - $50 FEE

 

Share registries are starting to charge for transfers that previously were free.


 

     

 

An off-market share transfer occurs when an owner wishes to transfer a share without using a stock broker.

This might occur in a deceased estate, or when an individual wants to make an in specie contribution to a superannuation fund (self managed or otherwise), or transfer the shares to the beneficial owner.  

The latter example is not an uncommon occurrence when shares are acquired under a bequest or given by a grandparent or parent for the benefit of a child.  If the child is underage, then the shares originally would be registered in the name of a parent as trustee.

The share registry claims that there is an unreasonable amount of work required for them to satisfy the identification requirements in the various legislation (Anti Terrorism, Money Laundering) and they have been given permission to charge a $50 fee for the transfer.  They don’t seem to impose the fee for the transfer into/out of a deceased estate.

Where the fee cannot be negotiated away, the options are to have a broker do it or not bother.

The impetus to be bothered is the confusion and extra work that is beginning to occur because trustees holding shares for their children typically quote their own Tax File Number and now the Australian Taxation Office expects that income to be matched in the tax return.  The unsolved problem is, whether the $50 fee is cheaper than the time and debate with the Australian Taxation Office over the correct declaration of income and/or is it necessary when the child becomes of age to transfer the shares into their name.  Quoting the beneficiaries Tax File Number should solve part of the tax problem, but doesn’t always because share registries have a habit of refusing to record the (correct) information.

Other options might be simply selling the share, because the child/adult no longer wants the holding and the original reasons for the acquisition no longer applies or other investment options are preferred.

The usual questions about whether the holding is a genuine trust relationship or not and the ongoing purpose and merits in investment apply.  



12th-May-2013