Greenwoods and Freehills Weekly Tax Highlights - Week Ended 19.9.08
ATO Documents
Released 17.9.08
Draft Self Managed Superannuation Fund Ruling
SMSFR 2008/D4: Self Managed Superannuation Funds: the meaning of 'borrow money' or 'maintain an existing borrowing of money' for the purposes of section 67 of the Superannuation Industry (Supervision) Act 1993
Class Rulings
CR 2008/58: Income tax: payment of dividend by MediHerb Holdings Limited
CR 2008/59: Income tax: tax treatment of Commercial Horse Assistance Payments to primary carers of commercial horses affected by the equine influenza quarantine
Product Ruling
PR 2008/64: Income tax: deductibility of interest incurred on borrowings in relation to Macquarie Fusion Funds - November 2008 Offer
Erratum
Taxation Determination
TD 2008/22: Income tax: capital gains: does CGT event C2 happen as a result of the satisfaction of an investor's rights under a Deferred Purchase Agreement warrant, an investment product offered by financial institutions, by the delivery of the Delivery Assets?
Released 19.9.08
Withdrawn Interpretative Decisions
ATO ID 2003/117: Deferred capital loss or deduction: greater than 50% interest - further event
ATO ID 2003/118: Deferred capital loss or deduction: greater than 50% interest - realisation event
ATO ID 2003/265: Deferred capital loss or deduction - asset transferred between non-residents
ATO ID 2003/399: Deferred capital loss or deduction: ceases to exist - more than one new event happens - time of new event
ATO ID 2005/224: Distillation and alcohol concentration methods: reverse osmosis
ATO ID 2005/329: Excise: beer spirit used in the manufacture of beer
International Tax Agreements Amendment Bill (No 2) 2008
Released 17.9.08
International Tax Agreements Amendment Bill (No 2) 2008 and the accompanying Explanatory Memorandum has been introduced into the House of Representatives. The Billwill give the force of law in Australia to a Protocol amending the double tax agreement with South Africa. The Protocol will address Australia's "most favoured nation obligations" by amending the existing Agreement to prevent discriminatory tax being levied against taxpayers of one country operating in the other country.
Appeals Update
FCT v Spriggs and Riddell [2008] FCAFC 150: The taxpayers have sought special leave to appeal to the High Court. The Full Federal Court had held that the taxpayers (professional footballers) were not entitled to a deduction for management fees.Tax Cases
Sunchen Pty Ltd ATF The Sunchen Family Trust and FCT [2008] AATA 838, 19 September 2008: The AAT has denied a taxpayer an input tax credit. The Tribunal dismissed the taxpayer's argument that a single storey house, which was being rented at the time the taxpayer sought the credit, was purchased with the intention of constructing units. The AAT decided that the objective facts of the situation trumped the taxpayer's subjective intentions to begin construction at an unspecified time in the future.
The Trustee of the Amabalad Family Trust AAT Case [2008] AATA, 11 September 2008: The AAT has ordered the ATO to issue an amended assessment to the taxpayer. The Tribunal found that the taxpayer was entitled to an input tax credit. The Commissioner had dismissed that taxpayer's claims and imposed a shortfall penalty.
Legislative Update
International Tax Agreements Amendment Bill (No 1) Bill 2008: The Bill has now passed all stages without amendment and awaits Royal Assent. The Bill gives the force of law to a new tax treaty between Australia and Japan.
Tax Laws Amendment (2008 Measures No. 4) 2008: The House of Representatives has agreed to the amendments made by the Senate to the Bill. The Senate's amendments removed the provisions dealing with family trusts.
Progress of Legislation
As at 19.9.08
|
Bill |
Explanatory Memorandum |
Intro House |
Passed House |
Intro Senate |
Passed Senate |
Date of Royal assent / Act Number |
Description |
|
27.5.08 |
28.5.08 |
16.6.08 |
25.6.08 |
30.6.08/59 |
FBT, Employee Share Schemes, Software Depreciation | ||
|
Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill 2008 |
27.5.08 |
28.5.08 |
16.6.08 |
|
|
Medicare Levy Thresholds | |
|
29.3.08 |
5.6.08 |
16.6.08 |
1.9.08 |
|
Rights issues, GST Refunds | ||
|
26.6.08 |
17.9.08 |
|
|
|
Capital Gains Tax, Family Trust Changes | ||
|
International Tax Agreements Amendment Bill (No 1) Bill 2008 |
27.8.08 |
15.9.08 |
16.9.08 |
18.9.08
|
|
New Treaty with Japan | |
|
27.8.08 |
|
|
|
|
Removes Tax Deductibility of Political Donations, GST | ||
|
17.9.08 |
|
|
|
|
Introduces a Protocol with South Africa |