it’s all about money! ™
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ABN 65 103 438 277. IT’S ALL ABOUT MONEY! ™. Bruce Flint, Managing Director. For Profitable Solutions. “Forensic Accounting Services”. ABN 65 103 438 277. FINANCIAL TRANSACTIONS REPORTS ACT 1988 ” THE DAY TO DAY APPLICATION ”. For Profitable Solutions. Presentation by - PowerPoint PPT PresentationTRANSCRIPT
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IT’S ALL ABOUT MONEY!IT’S ALL ABOUT MONEY!™™
ABN 65 103 438 277
For Profitable Solutions
Bruce Flint, Managing Director
““Forensic Accounting Services”Forensic Accounting Services”
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FINANCIAL TRANSACTIONSFINANCIAL TRANSACTIONS REPORTS ACT 1988 REPORTS ACT 1988
” THE DAY TO DAY APPLICATION ”” THE DAY TO DAY APPLICATION ”
Presentation by
Bruce Flint CA, CFE
For ALUCA NSW CMG, 24 November 2004
ABN 65 103 438 277
For Profitable Solutions
““Forensic Accounting Services”Forensic Accounting Services”
Liability limited by a scheme approved under Professional Standards Legislation
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IntroductionIntroduction
• Overview of the Day to Day Application
• ATO and AUSTRAC
• Australia’s Anti-Money Laundering Program
• Life Companies Compliance (Suspect Trans)
• What does Compliance Mean?
• Case Studies
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The ATO and AUSTRACThe ATO and AUSTRAC
• Who are they?
– Australian Taxation Office
– AUSTRAC
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The ATOThe ATO
• Tax Evasion Examples:
– Declaring income in an associated entity that is not entitled (IP Benefits)
– Claiming deductions for expenses which were not incurred or are not legally deductible (claiming expenses against IP Benefits)
– Failing to declare assessable income– Failing to lodge tax returns in an attempt to
avoid payment
““Forensic Accounting Services”Forensic Accounting Services”
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The ATOThe ATO
• Tax Evasion Signs:
– Not being registered for GST, despite clearly exceeding threshold
– Not charging GST at the correct rate– Not wanting to issue a receipt– Providing false invoice– Using a false business name, address, ABN or
TFN– Not providing staff with PAYG Summaries
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Australia’s Anti-Money Australia’s Anti-Money Laundering ProgramLaundering Program
• Cash Dealers
– Obtain account and signature information
– Suspicious Transactions– Cash Transactions of $10,000 or more
or foreign currency equivalent– International Funds Transfer
““Forensic Accounting Services”Forensic Accounting Services”
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Life Companies Life Companies ComplianceCompliance
• Reporting of Suspect Transactions
– Is there a requirement?– What is a transaction?– What is a suspect transaction?– How to report?– Method of Reporting– Guidance.
• section 3, 16, 17, part v and schedule 4,• Guideline no 1 and guideline addendum 3,• Information Circular no 7, 22, 23 and 24.
– Retention of documents
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Life Companies Life Companies Compliance (cont’d)Compliance (cont’d)• Reporting of Suspect Transactions
– Secrecy
• Will the insured know about the report to AUSTRAC?
““Forensic Accounting Services”Forensic Accounting Services”
• Enforcement
– Offences
•What are the offences?
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What does compliance What does compliance mean?mean?
• System Changes
• Education on obligations
• Reporting mechanisms
• Privacy
• Summary of Suspect Transactions
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Summary of Suspect Summary of Suspect Trans.Trans.
SuspectTransactions
Report
Review by Appropriateprofessional
Secrecy
MaintainSeparate
Files
Completionof Form 17
Forward Reportto Director
of AUSTRAC
IdentifySuspect
Transaction
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Case Study 1Case Study 1• The payment of spouse remuneration
Mr John Howard, medical practitioner took out an income protection policy for $1,500 per week. Mr John Howard became bankrupt, went on claim and commenced paying his spouse remuneration.
– Is the payment of salary an eligible add back or a legitimate income splitting arrangement?
– What is the effect on the benefit payable?– What does the insurance company do, if
anything?
““Forensic Accounting Services”Forensic Accounting Services”
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Case Study 2Case Study 2
• Payment of Benefits not to Policy Owner
Dr Simon Cream, medical practitioner operation medical practice through a company and his service trust provided accommodation and administrative services to his company.
– Is the disclosure of income protection Benefits in the company’s income tax return legitimate?
– Is there any contravention to the Financial Transactions Reports Act 1988?
““Forensic Accounting Services”Forensic Accounting Services”
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IT’S ALL ABOUT MONEY!IT’S ALL ABOUT MONEY!™™
When it’s all about money,
Flint Forensics Pty Ltd is the impartial and independent specialist for:
personal and commercial litigation support.
““Forensic Accounting Services”Forensic Accounting Services”
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For Further InformationFor Further Information
Flint Forensics Pty Ltd is the solution.
To find out more you can:
• Phone 02 9584 1474• Visit the website www.flintforensics.com.au
• Email [email protected]
““Forensic Accounting Services”Forensic Accounting Services”