The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013

On 24 October 2013, the Government released a draft of the Minerals Resource Rent Tax (MRRT) Repeal and Other Measures Bill 2013. The Bill was introduced into parliament on 13 November 2013.

The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 removes the Minerals Resource Rent Tax with effect from 1 July 2014. The Bill includes the:

repeal of loss carry back;

reduction in the small business instant asset write off threshold;

repeal of accelerated depreciation for motor vehicles;

repeal of the geothermal exploration provisions;

re-phasing of the change in rate of the superannuation guarantee charge percentage;

repeal of the low income superannuation contribution;

repeal of the income support bonus; and

repeal of the schoolkids bonus.

Dividend washing

occurs when shareholders seek to claim two sets of franking credits on what is effectively the same parcel of shares. https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Preventing-dividend-washing/
Dividend washing involves arrangements that enable a taxpayer who effectively holds a single parcel of shares to obtain double franking credits. This occurs when an investor, who has access to the Special Market operated by the Australian Securities Exchange, sells shares ex-dividend (seller retaining the dividend with franking credits) and then in 2 days buys cum-dividend shares (ie with dividend rights still attached) in the same company on the Special Market (buyer receiving the dividend with franking credits).
The price paid for shares in this market is usually very close to the price in the normal ex-dividend market, plus the value of the dividend to be paid on the shares. https://www.ato.gov.au/Media-centre/Media-releases/ATO-confirms-dividend-washing-not-allowable-under-tax-law/
The new law will apply from July 1, 2013, to investors who have franking credit tax offset entitlements in excess of $5000. Small shareholders will be excluded. However, experts said that the ATO was relying on a broader anti-avoidance provision to examine share trades which pre-date the new law.
The ATO has been given the go ahead to start chasing investors (including SMSF trustees) after the release of a draft tax determination (TD 2014/D1) which basically outlaws the practice.

Preventing dividend washing 24 March 2014 | Exposure Draft

This draft legislation would amend the tax law to deny an entity the benefits of any additional franking credits that an entity receives as a result of dividend washing.

AUSTRAC and The Anti-Money Laundering and Counter-Terrorism Financing Act 2006

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is Australia's anti-money laundering regulator and specialist financial intelligence unit.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) received Royal Assent on 12 December 2006, the AML/CTF Act became fully operational from 12 December 2008.

Where Yanukovych and his rich hunting buddies hung out

28 friendsof the ousted president
By Oleksandr Akimenko, Anna Babinets (Slidstvo.info), Natalie Sedletska (RFE/RL)

“We’ve survived, though we are outlaws.” This line from a Russian gangster song became the unofficial anthem of the presidential hunting club whose members included an elite collection of presidents, billionaires and others during the rule of overthrown President Viktor Yanukovych.

CA Preparation: Adjusting Entries

Quiz

Shadow economy

Goods and services are traded for cash, and therefore are not declared for tax.

Shell companies

Exist on paper only, with no real employees or offices AND serve as a vehicle for business transactions without itself having any significant assets or operations.

Ukraine asset recovery meeting must examine banks' role in state looting

Global Witness, 28th April 2014
Efforts to recover stolen assets from the Ukraine need to paired with proactive steps to stop banks enabling state looting, said Global Witness as the international community gathers in London for  the Ukraine Forum on Asset Recovery (UFAR).

Led by the UK, US and Ukraine, representatives from national governments and international financial centres will meet in London for two days to discuss tracing and seizing the proceeds of corruption in the Ukraine following the deposition of former president Viktor Yanukovych. While this initiative is welcome, Global Witness is calling on the international community to do much more to tackle corruption at the source by ensuring that banks refuse money thought to have been acquired through corruption.

“The recovery of stolen assets is difficult, time consuming and expensive. It would be much better if we could stop the money going missing in the first place,” said Robert Palmer, leader of the Money Laundering Campaign at Global Witness.“If the money is so obviously corrupt, banks in London, New York and other big financial centres shouldn’t be handling it and governments shouldn’t be letting them do so. "

A 2011 report from the UK financial regulator found that three quarters of banks in the UK were not doing enough to turn away potentially corrupt funds. Global Witness is calling on governments to take a much tougher line on banks that handle stolen loot, including holding  senior executives to account for these failings.