Interest Rates Remain Unchanged

LATEST AUSTRALIAN BUSINESS NEWS

The Reserve Bank of Australia announced yesterday that at its monthly meeting on Tuesday it had determined to leave the official cash rate unchanged.

The official cash rate remains at 5.50%

Meanwhile, the Australian Tax Office (ATO) warned business owners to be wary of promoters offering to reduce income tax through arrangements using tax losses in an unrelated company.

Under the arrangements businesses are restructured so that income is channelled through a chain of trusts and ultimately to a company with alleged tax losses.

The Tax Office is concerned that these arrangements involve the artificial transfer of income and that at all times the business owners retain effective control of the money in question, less a fee which is paid in cash to the promoter. These arrangements may breach a number of provisions of the Tax Act, including the general anti-avoidance rules.

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David

editor@agarcarlyon.com