Friday, January 11, 2008
PAUL CARRAZZO “BLOODHORSE REVIEW” ARTICLES UPDATE
This comprehensive update involves placing the following Australian Bloodhorse Review articles in Media Watch.
- March 2007 – “The new Simplified Tax
System (STS);
- July 2007 – “Horse Breeding – Latest ATO
feedback”; and
- October 2007 – “New horse ruling – at last”.
The latter October 2007 article provides the most comprehensive analysis to date of the new horse draft ruling, TR 2007/D9. This is the first horse ruling to be issued by the ATO in over 14 years and is a must read. Paul Carrazzo was part of the ATO consultative panel in relation to the formulation of this ruling.
NEW WA TAX CASE – A WIN FOR BREEDERS
Paul’s views on the new WA tax case affecting breeders is also available here. It’s a real win for the industry, too, as it makes it clear that breeders can still be considered as a taxation business when losses are being consistently made.
Wednesday, September 12, 2007
PAUL CARRAZZO REVIEWS NEW ATO HORSE RULING
The ATO has recently issued a new Draft Ruling with regard to the
Thoroughbred Industry. Carrazzo Consulting has prepared a media
release in response to this important industry event.
Please click here to read
or download the article.
Tuesday March 6, 2007
PAUL CARRAZZO "BLOODHORSE REVIEW" NOVEMBER 2006 ARTICLE
The racing and breeding industry is anxious for feedback on the progress of the current ATO racing
industry audit.
Paul's November 2006 article in Media Watch will answer many of your
questions, especially as to what the ATO are specifically looking for in a breeding or racing
taxation business.
The ATO are also due to release an updated horse industry tax ruling in March 2007, so we suggest
you keep monitoring our site for Paul's comments on this.
Wednesday December 6, 2006
PAUL CARRAZZO "BLOODHORSE REVIEW" ARTICLES UPDATE
Our latest update is not before time and we include in Media Watch the following two most
recent articles that Paul has written for the Australian Bloodhorse Review:
1. May 2006 - "ATO Audit Questionnaire - need help?"
2. August 2006 - "New NZ "write-down" rules - how do we compare?"
The former May 2006 article was put together by popular demand and you should find it very useful, especially as
ATO audit activity within the racing industry has reached record levels.
Paul was also recently interviewed by the CPA Australia "In The Black" magazine in relation to the current impact
of the ATO racing industry audit and a copy of this November 2006 article is also
attached for your reference.
Friday March 10, 2006
ATO RACING INDUSTRY AUDIT UPDATE
In the past few years, Carrazzo Consulting has been inundated with queries
relating to the current ATO audit of the racing industry. In response to this,
Paul Carrazzo has decided to write a detailed article on what the audit has
established to date and how the industry can be properly prepared for it.
Once you have seen this April 2006 Australian Bloodhorse Review article in
Media Watch we’re sure that you will look no further
than Carrazzo Consulting for the advice needed to not only fight the audit with the
ATO, but to also get your horse tax affairs in order.
Monday November 21, 2005
ATO RELEASES GST FACT SHEET FOR THE RACING INDUSTRY
It's not hard to tell that the Australian horseracing industry is in the middle
of its largest ever audit when you suddenly see the ATO releasing new fact
sheets specifically targeting the industry.
The most significant ATO horseracing industry fact sheet in many years was
released only a few months ago in June 2005. The target area was GST and it is
aptly titled "GST for the racing industry".
Paul's article relating this crucial document appeared in the October 2005
issue of the Australian Bloodhorse Review and is now available in
Media Watch.
Thursday June 02, 2005
BUSINESS V HOBBY - ANOTHER ATO UPDATE
Paul Carrazzo once again revisits one of the hottest topics in
horse taxation, i.e. whether an activity is a "business" or "hobby".
Paul goes to great details explaining a new tax ruling on this area
and relates it to horse industry activities - invaluable for those
considering a new business of horse breeding.
This article appeared in the April 2005 issue of the Australian
Bloodhorse Review and is found in Media Watch.
PAUL'S FINANCIAL REVIEW ARTICLE RE ATO HORSE INDUSTRY AUDIT
This article was published in the April 7 2005 issue of the
Financial Review and lets the business community know that the
ATO is cracking down on GST and income tax non-compliance within the
horse racing industry. Paul Carrazzo had dominated discussion and
commentary on this topic since the ATO released details of its horse
industry audit in October 2003, this topic being regularly featured in
his horse tax seminars and articles over the past 18 or so months.
Click to see this article.
Wednesday March 02, 2005
DEPRECIATION & HORSES - FAQs
At last Paul Carrazzo has dedicated an article to this tricky question.
So if you're a racehorse owner, breeder or farm owner, this article has
something for you all. This article appeared in the January 2005 issue of the
Australian Bloodhorse Review and can be found in Media Watch.
Tuesday November 16, 2004
HOBBY BREEDERS - IT GETS EVEN WORSE!
If you thought that a "hobbyist" selling a foal at a yearling sale can be
exempt from paying Capital Gains Tax, this article has unwelcome news for you.
Read Paul Carrazzo's summary of a recent ATO Private Ruling he received and
it will tell you quite the opposite - contrary to the popular view in the
industry. This article appeared in the October 2004 issue of the Australian
Bloodhorse Review and can be found in Media Watch.
"BLOODSTOCK, SWEAT & TEARS" - PAUL'S FEATURE ARTICLE IN NOVEMBER 2004
"IN THE BLACK" MAGAZINE
The CPA Australia members magazine, "IN THE BLACK", have just featured Paul
in its November 2004 issue. For Paul's views on the vagaries of Bloodstock
Investment and why he finds bloodstock tax consulting so rewarding,
click here to read the article.
Wednesday July 28, 2004
BREEDING PROPERTIES & TAXATION
Our office receives numerous queries on this topic, especially
as many properties have increased considerably in value over
the last 5 or so years. This article discusses the income tax,
capital gains tax and GST issues relating to the holding of
breeding properties - even the tax implications of “one-off”
subdivisions is discussed. See Media Watch
for Paul’s July 2004 Australian Bloodhorse Review article on this topic.
Wednesday, June 02, 2004
CAPITAL GAINS TAX & HORSES – CASE STUDIES
Our office receives numerous queries in the area of Capital Gains Tax and horses.
What better then discuss this topic in terms of 4 very relevant case studies. We're
sure that one of these case studies may apply to those of you needing guidance in this area.
See Media Watch for Paul’s April 2004 Australian Bloodhorse
Review article on this topic.
Thursday, February 26, 2004
ATO TARGETS HORSE INDUSTRY
After 10 or so years of relative quiet, the ATO has now launched an audit of the
NSW racing industry. So, who will be affected? When will it start? Why are they
doing it? How will they get their information? Most, if not all your questions
will be answered in this January 2004 Australian Bloodhorse Review article that
Paul has put together. See Media Watch.
Thursday, October 02, 2003
AN A-Z HORSE TAX GLOSSARY (Part 2)
After publishing part 1 in the June 2003 issue of The Australian Bloodhorse Review, Paul believes his "Part 2"
September 2003 article will prove just as popular. This "N-Z" section includes frequently asked "hot topics" such as
"GST and exports", "Simplified Tax System", "Racehorses" and "Valuation of Stock". See it in
Media Watch
if you want to complete your horse taxation library of essential issues.
Friday, July 04, 2003
AN A-Z HORSE TAX GLOSSARY
Confused about all of the horse tax jargon out there? Paul's June 2003 article in The Australian Bloodhorse Review
is all about "demystifying" all of this jargon as he has put together a long awaited "A-Z" Horse Tax Glossary. If there's
an issue you have in horse taxation, we'll be surprised if the glossary doesn't mention it. Part 1 of this two part series
is waiting for you in Media Watch.
Monday, April 07, 2003
BUSINESS PLANS - GET SERIOUS!
The ATO have never been more serious about the need for new breeders and owners to prepare a Business Plan to be able to support the existence of a legitimate taxation business. Paul's March 2003 Australian Bloodhorse Review article in Media Watch outlines the compelling reasons for preparing a plan and what areas should be addressed in a typical horse industry plan. There can be no better reference for a new player in the industry.
PAUL CARRAZZO "PERSONALITY PROFILE" ON THE NET
Need to know more about Paul Carrazzo? If so, we highly recommend that you read Paul's "Personality Profile" in the April 2003 issue of The Australian Bloodhorse Review. The profile talks about many issues, including how he got his start in horse taxation, his family's background in the horse industry and what Paul does that sets him apart from his competitors. The profile can be found on the web site of The Australian Bloodhorse Review.
Friday, December 20, 2002
STALLION SHARES - FAQs
As a means of diversifying bloodstock holdings, horse industry players are looking more and more to acquiring Stallion Shares. Paul’s December 2002 Australian Bloodhorse Review article answers all of the tax queries that a stallion share owner could possibly have. You need look no further than Media Watch.
Friday, October 04, 2002
START-UP CHECKLIST
There are numerous tax issues to consider when starting any business, especially if it's a horse breeding business. Paul Carrazzo's September 2002 Australian Bloodhorse Review article provides an invaluable checklist and is now posted to Media Watch.
WRITE-DOWN BREEDERS TAX CONFUSION
Paul Carrazzo's recent interview with The Australian Financial Review is now in
Media Watch and explains why write-down breeders may not get the tax concessions they had hoped for. Paul's approach to the ATO may yet change poorly drafted tax law, law which threatens the availability of tax losses for many breeders, especially those in the start-up phase.
Sunday, July 21, 2002
BREEDER DEDUCTIONS UPDATE
By popular demand, Paul's June 2002 article for the Australian Bloodhorse
Review discusses and lists the breeding deductions that serious breeders should
be aware of. Media Watch is where you will find
this valuable reference.
Tuesday, April 16, 2002
CAPITAL GAINS AND RACEHORSES UPDATE
Paul Carrazzo has been advised by the ATO that training expenses should
not form part of the capital gains tax cost base for a hobby racehorse.
It's not great news, but important for certainty in this complex area as
debate has raged for a long time. Go to Media Watch
and read Paul's comments about this ATO opinion in the "Australian Financial
Review".
THE PROBLEM AREAS IN HORSE TAXATION
Paul's article in the March 2002 issue of the Australian Bloodhorse
Review discusses the problem areas in horse taxation. Readers will relate to
many of these and will be delighted to finally get some answers from one of
Australia's leading Blooodstock Taxation specialists. The article has been
posted to Media Watch for your reference.
Sunday, December 30, 2001
NEW CASE STUDY AVAILABLE
You asked for it and now you've got it. Paul's latest December 2001
Australian Bloodhorse Review article,
"New breeder case study",
now in Media Watch, includes a practical and
topical case study in relation to the tax issues normally confronting new
breeders. All of the hot topics are addressed including GST, Capital Gains Tax
and Business vs Hobby.
Wednesday, October 10, 2001
KEEPING UP THE GOOD WORKOur Principal, Paul Carrazzo CPA, is proud
to announce that he has recently been accredited by The Australian Society of
CPAs as a "Professional Financial Planner" (PFP), the highest designation given
by the society for Financial Planners. Paul has also completed all the
educational requirements of a Certified Financial Planner (CFP), which makes him
one of the more qualified CPAs in this highly sought after area.
It doesn't stop there. In recognition of Paul's strong property knowledge,
The Australian Society of CPAs has also appointed Paul as its 2002
representative at the very popular ANZ "Buying a Home" seminars. Other guest
speakers include The Law Institute of Victoria, REIV, and the ANZ Bank.
NSW CLIENTS - WE HEAR YOU!
Due to the constant demand for Paul's services from clients based in Sydney
and regional NSW, especially those in the thoroughbred industry, Paul will be
spending at least two days a month up there seeing clients. Interested clients
should call our office (Tel: 03 9329 7044) to arrange an appointment.
STOCK WRITE-DOWNS UPDATEPaul's latest September 2001 Australian
Bloodhorse Review article,
"Stock write-downs revisited"
is now on Media Watch. Paul provides valuable
insight in relation to the generous stock write-downs available to mares and
stallions. FAQ's also provided.
Thursday, June 21, 2001
FAMILY RETIREMENT FUNDS - A NEW HORSE INDUSTRY VEHICLE
Paul's latest June 2001 Australian Bloodhorse Review article is now on
Media Watch. Paul discusses in great detail how
Family Retirement Funds
can assist breeders in expanding their bloodstock assets, accumulating wealth
and providing important asset protection.
Saturday, April 07, 2001
PAUL'S NEW MARCH 2001 BLOODHORSE REVIEW ARTICLE
Media Watch has been updated with Paul's recent
March 2001 Australian Bloodhorse Review article titled
Horses and Tax - FAQ.
This article is a must read for new thoroughbred industry entrants and has met
with wide acclaim within the industry.
CHANGES TO BAS & IAS SYSTEM
The changes, announced by the ATO in late February 2001, are set to apply
from the quarter ended 31 March 2001.
Highlights of these changes are set
out below.
1. IAS Changes
- Taxpayers whose 2000 investment or
business income was less than $1,000 and whose total tax payable
is less than $250 are removed from the IAS system;
- Individuals, partners and companies
(whose turnover is less than $1m), have the option of paying an
IAS quarterly instalment advised by the ATO; and
- The above taxpayers can still continue to
work out their quarterly IAS instalment under the old system.
2. BAS changes
- The old system still available, but the
BAS will be simplified;
- If turnover less than $20m, you can stay
with the current system or pay your actual GST amounts under a
streamlined quarterly reporting system (i.e. many boxes need not
be completed), which includes the lodging of a yearly BAS no later
than 28 February 2002;
- If turnover less than $2m, an additional
option is to pay a quarterly amount advised by the ATO, which
again includes lodging of a yearly BAS no later than 28 February
2002. Under this option a quarterly BAS need not be prepared,
unless the taxpayer had a refund in the December 2000 quarter. GST
Refund taxpayers must still prepare a condensed BAS for the March
2001 quarter; and
- If a business lodges on a monthly basis,
same arrangements apply, however their quarterly BAS will be
significantly streamlined from June 2001.
New quarterly lodgment and payment dates
The lodgment period for the BAS has now been extended. Lodging the BAS within
21 days of the end of the reporting quarter has now been increased to 28 days,
the exception being the December quarter BAS lodgment has been increased to 9
weeks after the end of that quarter.
If you have any further queries
please either contact our office, the ATO on
13 24 78 or visit their Web Site at
www.taxreform.gov.au.
Tuesday, February 27, 2001
GST WARNING ON HORSE SALES
Horse breeders who applied for an ABN, but chose not to register for GST
as they expected their current and projected annual turnover to be less
than $50,000, could be in for a real shock if they sell a yearling for greater
than $50,000 in the upcoming Australian yearling sales – the ATO will want
1/11th of their proceeds! Read all about it in this
article
from "The Australian Financial Review".
RALPH ATTACKS HORSE LOSSES
Under new rules,
commencing from 1 July 2000, horse breeding losses incurred by individuals
(including an individual in partnership), which would normally be deductible
because the individual is carrying on a “business”, will not be deductible
unless certain criteria is satisfied.
NEW CGT 50% DISCOUNT APPLIES FROM THE 2000 TAX YEAR
After 21 September 1999 an individual, trust or complying superannuation
entity that acquires a CGT asset and makes a
capital gain from a CGT event happening to that CGT asset, will receive a
discount on the capital gain. The CGT asset must be owned for at least 12 months
for a taxpayer to obtain this discount. The CGT discount is a reduction of the
nominal gain (i.e. without indexation) by 50% for individuals and trusts, and
by 33 1/3 % for complying superannuation entities.
Monday, February 26, 2001
NEW PSI RULESThe new PSI rules
are aimed at those individuals who divert income generated by their Personal
Services Income to a company, trust or partnership. The measures apply from
1 July 2000. If an entity earns more than 80% of its PSI from the
one source, the measures automatically apply unless the entity
obtains a determination from the ATO stating it is conducting a personal
services “business”.
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