Simeoni Christmas Newsletter

05-Dec-2017

Introduction



This year is nearly coming to a close and it is hard to believe we are planning for 2018.

2017 has in most cases been a productive year mainly on the Eastern Coast of Australia while a difficult one on the West Coast where they are seeing ‘green sprout’ of optimism emerging.

We have been very fortunate at Simeoni to have had another strong year, thanks mainly to an exceptional team who are dedicated and take care to look after our clients.

We are also proud of the caliber of clients we have been able to assist this year, we enjoy being been a part of their journey and seeing clients achieve their goals. 

The team at Simeoni look forward to assisting our clients again in 2018.

Simeoni will be welcoming a new team member next year. We have known Carmen over the years, as she has worked for one of our clients for over 15 years. Our client is in the process of selling their business and we have taken the opportunity to offer Carmen a position in administration and bookkeeping.

The team at Simeoni hope you enjoy the Christmas Newsletter and we wish you and your families a great Christmas and New Year.

We look forward to seeing you in 2018!


Paul’s Fearless predictions for 2018 ...

2017 has been another difficult year in predictions but there was a slight improvement compared to last year’s result which was: 4.5 out of 10.

My 2018 predictions include the following:

1)  Sydney property prices will decrease for the 2018 year.

2)  The all ords will reach the 6500 mark in 2018.

3)  The Socceroos will progress past the 1st round in the 2018 world cup finals.

4)  Malcolm Turnbull will not be Prime Minister at the next election and will be replaced. 

5)  Gina Rinehart to remain Australia’s richest person.

 6)  North Korean Kim Jong-un will be removed as the leader of the country in 2018. 

7)  Mount Vesuvius will erupt in 2018.

8)  Sydney Roosters will win the 2018 NRL premiership or should I say BUY the premiership.  

9)  Sydney Swans to win the 2018 AFL premiership.

10) Europe GDP to hit 3% for 2018.


Results for 2017 are...

v

1)  Socceroos will qualify for the 2018 World Cup.

x

2)  Interest rates will increase during the year.

v

3)  Sydney housing will only slightly increase while inner city apartments will start to fall in          value.

V
USA has the prototypes and has commenced constructions

4)  Donald Trump will commence building the wall but Mexico will not pay for it directly, it will      come out of grants paid by the US to Mexico. 

v

5)  Sydney FC to win the A league.

X
Well not yet

 6)  Malcom Turnbull will be challenged as prime minister during the year. 

X
1.8%

7)  An Australian’s GDP will be between 2.50 and 3% in 2017.

x

8)  Mel Gibson’s Hacksaw Ridge will win the Academy Award.

V
2017
Forbes
 Ranked
 Gine at
n' 1 in 2017

9)  Gina Rinehart to regain the richest person in Australia status.

x

10) An Australian or Canadian will win a tennis or golf major in 2017.

 

Santa’s Tax Crises


A light-hearted look at the complexity of Australian taxation laws.

a letter from the Australian Tax Office to Santa.

Dear Santa,
 
Thank you for the opportunity to provide tax advice for your operation. We are pleased you have initiated this advice as the Australian Taxation Office (ATO) is looking closely at any business or individual that operates within Australia but has significant transactions or operations internationally. 
The fact that you run a global business that generates no profit but ‘gifts’ millions of toys each year produced by your offshore factory, have significant brand value in Australia across thousands of goods and services, have never lodged a tax return, or paid tax in Australia, is likely to trigger an investigation. 

We have identified a number of issues as a starting point for further discussions. These are:
 
Tax resident or non-resident?
We note that you have a secret Australian warehouse to aid distribution and Christmas Eve logistics across the region. The warehouse domiciled in Australia may mean that you have a permanent establishment in Australia, which could mean you are taxed in Australia on profits generated by the warehouse. As there is no Double Tax Agreement between Australia and the North Pole, it’s possible you will be subject to local tax laws in both countries. You might be able to claim a tax credit to help reduce the impact of double taxation. We note that this same situation is likely to apply in many countries not just Australia. 

 Representation in a particular country may also be enough to make your operation subject to local tax laws. You appear to have local agents - several thousand Santa representatives - with authority to operate on your behalf in shopping centres across Australia. These agents commit the operation with the promise of toys to millions of children. A local agent acting with authority may expose you to local tax laws. This is an issue that may extend well beyond Australia. This issue requires immediate formal assessment. 
 
Santa’s little helpers. Volunteers, underpaid employees, or slave labour?
A review should be completed of the employment status of the ‘Santa’s little helpers’ based in Australia to determine if they are contractors or employees. If the helpers are deemed to be employees, you may be liable for the superannuation guarantee (SG) for this year (currently 9.5%) and previous years. If you have missed the SG deadline for any previous quarters then you would be subject to the superannuation guarantee charge, which means that interest and additional fees will be accumulating and you will not be able to claim a deduction for these amounts when they are paid. It will be difficult to argue that they are truly independent given the level of corporate branding involved. If the helpers are indeed ‘volunteers’ we will need to consult an employment lawyer regarding potential slave labour issues and discrimination of a minority group.

The Uber Driver GST Surprise


As most people are now aware, Uber drivers need to register for GST by the time they complete their first drive. What many are unaware of however is that the GST registration applies to any other businesses that they run as a sole trader. Take the example of someone who has a micro business that turns over less than $50,000. Under GST law, the business owner is not required to be registered for GST and there should be no GST on the things they sell to customers. However, if this same micro business person starts driving for Uber, the GST registration applies not only to their Uber activities but to their micro business as well.  

ACCC gets tough on credit card surcharge


The ACCC has issued a warning to businesses charging excessive credit card fees. One large merchant has already been issued with four infringement notices and has paid $43,200 in penalties.

The new rules, which came into effect from 1 September 2017, prevent merchants from charging more than the true cost of the transaction. As a guide, where a charge is imposed, the ACCC says that consumers should expect to pay around 0.5% to 1% for payment by debit card, 1% to 1.5% by MasterCard and Visa credit cards and 2% to 3% for American Express. Consumers are being encouraged to contact the ACCC if a business is charging more than what the ACCC expects.

Merry Christmas

Christmas is a time that reminds us that there is more to life than work. Embrace the season and all the pleasures it delivers.

We wish you and your family a peaceful, safe and happy Christmas. 
We look forward to exploring the New Year with you and seizing the opportunities it offers.


"Happy, happy Christmas, that can win us back to the delusions of our childish days; that can recall to the old man the pleasures of his youth; that can transport the sailor and the traveller, thousands of miles away, back to his own fire-side and his quiet home!"
Charles Dickens, The Pickwick Papers

Our office will be closed from Friday 22nd December 2017 and will reopen on Monday 15 January 2018. 



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