TAG Tax


As many in California already know, the State does not conform automatically to new Federal tax legislation, including the Tax Cuts and Jobs Act enacted on December 22, 2017 (“TCJA”). Instead, any conforming changes must be enacted by the California legislature. On July 1, 2019, California Governor Gavin Newsom (D) signed Assembly Bill 91 “Loophole Closure and Small Business and Working Families Tax Relief Act of 2019” (“AB 91”). That legislation selectively conforms to some of the provisions of the TCJA.

Read more: California Enacts its Version of Limitation on Business Losses for Non-Corporate Taxpayers


Author: Asel Lindsey

Among the many benefits of investing in a qualified opportunity fund (QOF) is the deferral of tax on current capital gains. Specifically, if an amount equivalent to a current capital gain is invested in a QOF within 180 days of the realization event, the tax generally will not come due until the earlier of the year in which the QOF investment is disposed of or 2026. As an added benefit, there may be a reduction in the amount of the capital gain subject to tax (up to 15 percent) when the tax bill comes due.

Read more: Do You Know What the Capital Gains Rate Will Be in 2026?


Authors: Rod Jones, Partner and Donna Benge, Partner

AFCA is the new authority for dealing with complaints about Financial Firms and applies to complaints submitted from 1 November 2018.

The scheme is governed by Scheme Rules, Operational Guidelines to the Rules and a Transitional Superannuation Guide. These are extensive documents and this article is only intended to provide a very brief introduction to them.

Read more: A new dawn for superannuation complaints - Australian Financial Complaints Authority (AFCA)


In April we blogged about the upcoming reforms to the Tax framework - IR35.

Under current legislation, where an individual offers services through a PSC but in practice the relationship is akin to an employment one, the HMRC can treat them as an employee for tax purposes. Currently, in the public sector, the end user must determine the status and deduct tax accordingly. At present, in the private sector it is up to the PSC to determine the tax status. However, from April 2020 the rules for the public sector will be rolled out in the private sector and the below case is a useful reminder to companies who are considering their relationships with PSCs in preparation for the changes.

Read more: Presenter’s Arrangements with BBC Not Subject to IR35 Rules


The 2019 Budget was unveiled by the Finance Minister, Lim Guan Eng, on 2 November 2018 and was passed by the Dewan Rakyat on 6 December 2018. The theme of the Budget was “A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society”. In this article, we brief our readers on the highlights of the Budget 2019.

TAX

The Goods and Services Tax is zero-rated and has been replaced with the Sales and Services Tax (SST) on 1 September 2018. The Government, starting from 1 January 2019, will grant exemptions for specific business-to-business transactions between service tax registered persons. Imported services will also be subjected to service tax.

Online services such as downloaded software, music, video or digital advertising of foreign service providers will be required to register with the Royal Malaysian Customs and thereafter charge and remit the relevant service tax. A credit system for sales tax deduction will be introduced to assist small manufacturers who purchase manufacturing inputs from importers instead of other registered manufacturers.

Read more: The 2019 Budget… Briefly