Greenwoods and Freehills Weekly Tax Highlights - Week Ended 20.6.08

ATO Documents

Released 18.6.08

Draft Taxation Determination
TD 2008/D8: Income tax: when is income tax of a private company a 'present legal obligation' for the purposes of the distributable surplus calculation under subsection 109Y(2) of Division 7A of Part III of the Income Tax Assessment Act 1936?
Product Ruling
PR 2008/57: Income tax: tax consequences of investing in the Retirement Booster - Prospectus 1
PR 2008/58: Income tax: tax consequences of investing in MQ Listed Protected Loan
Addendum
Goods and Services Tax Ruling
GSTR 2003/13DA: Goods and services tax: general law partnerships 
Notice of Withdrawal
Draft Taxation Determination
TD 2007/D9: Income tax: is income tax of a private company properly payable for an income year, but unpaid at the end of that year, a 'present legal obligation' for the purposes of the distributable surplus calculation under subsection 109Y(2) of Division 7A of Part III of the Income Tax Assessment Act 1936? 

Released 20.6.08

New Interpretative Decisions
ATO ID 2008/91: Income tax: deductibility of expenditure on cables and cable support equipment by a service provider
ATO ID 2008/92: Capital Allowances: balancing adjustment event where a service provider gives up cable and cable support equipment to another entity
ATO ID 2008/93: Capital Allowances: cost of depreciating asset - instalment costs
ATO ID 2008/94: GST and changes in net amount outside the four year time limit
ATO ID 2008/95: Excess contributions tax: notional taxed contributions - new entrant age
Withdrawn Interpretative Decisions
ATO ID 2003/685: Foreign tax credit on UK dividends paid by UK resident company to an Australian resident individual taxpayer

Tax Laws Amendment (2008 Measures No 2) Bill 2008 passed through the Senate and now returns to the House of Representatives for consideration of  amendments.

For the current status of tax legislation before Parliament please refer to the table at the end of this document. Copies of the Bills and Explanatory Memoranda can be accessed by clicking on the links provided within the table.  

DCT v Meredith (No 2) NSWCA 133, 10 June 2008: The NSW Court of Appeal has dismissed the taxpayer's application to have a cost order, which was made against her, varied. The original judgement had found the taxpayer liable for directors' penalty tax and the court had ordered her to pay costs.  

FCT v Ostwald Bros Civil Pty Ltd [2008] FCAFC 99, 11 June 2008: The Full Federal Court allowed the Commissioner's appeal and has denied a taxpayer entitlement to an off-road credit for the use of diesel fuel in the construction of earthworks for a rail line and an associated maintenance road built to carry coal for a mine. The reason given for the disallowance was that the fuel was not used in the direct construction of the mining site.

Dunn and FCT, [2008] AATA 503, 12 June 2008: The AAT has found that the Commissioner had correctly decided to disallow a taxpayer's objection despite a five year delay between the objection being lodged and the ultimate decision. The Tribunal found that, under Part IVC of the Taxation Administration Act 1953, the decision could only be set aside if the taxpayer could prove that the assessment was excessive. The Tribunal stated that the taxpayer had not produced any evidence to that effect and therefore the objection was invalid.