Greenwoods & Freehills Weekly Tax Highlights 27.1.12

ATO documents

Draft Taxation Determinations
TD 2012/D2: Income tax: capital gains: for the purposes of paragraph 115-228(1)(a) of the Income Tax Assessment Act 1997 can a beneficiary of a trust estate be reasonably expected to receive a share of the net financial benefit referable to a capital gain made by the trust estate in an income year if the fact that the capital gain was made is not established until after the end of the income year? 
 
Class Rulings
CR 2012/6: Income tax: Return of capital, acquisition of new interests and stapling of securities to form a new stapled security: Centro Australia Wholesale Fund
CR 2012/7: Income tax: Return of capital, acquisition of new interests and stapling of securities to form a new stapled security: Centro DPF Holding Trust
CR 2012/8: Income tax: Return of capital, acquisition of new interests and stapling of securities to form a new stapled security: Centro Retail Group
CR 2012/9: Income tax: Return of capital: Centro Properties Group 
 
Erratum
TD 2007/28: Income tax: what is a 'present legal obligation' of a private company for the purposes of subsection 109Y(2) of Division 7A of Part III of the Income Tax Assessment Act 1936? 

Mitsui & Co (Australia) Ltd v FCT [2011] FCA 1423: The taxpayer has appealed to the Full Federal Court. Siopis J previously upheld the Commissioner’s disallowance of an immediate deduction under s.40-80 in respect of part of the consideration paid for a 40% interest in a petroleum production licence. The taxpayer argued that part of the consideration was attributable to the right conferred by the licence to carry out exploration activities in the licence area. Siopis J held that the production licence itself constituted the depreciating asset, and the underlying rights could not separately constitute depreciating assets.

As at 27.1.12