Greenwoods and Freehills Weekly Tax Highlights - Week Ended 17.10.08

ATO Documents

Released 15.10.08

Product Ruling
PR 2008/66: Income tax: Gunns Plantations Woodlot Project 2009 - Option 1
PR 2008/67: Income tax: Gunns Plantations Woodlot Project 2009 - Option 2
PR 2008/68: Income tax: Gunns Plantations Woodlot Project 2009 - Option 3
PR 2008/69: Income tax: Gunns Plantations Woodlot Project 2009 - Blended Option
Addenda
GSTR 2008/3: Goods and services tax: dealings in real property by bare trusts
Notices of Withdrawal
Taxation Determinations
TD 35: Capital gains: what is meant by the term 'renewal of a statutory licence' in section 160ZZPE?
TD 36: Capital gains: when is a renewal of a statutory licence 'wholly or principally attributable to' the taxpayer's ownership of the original licence?

Decision Impact Statement: Broadbeach

Released 15.10.08

DCT v Broadbeach Properties Pty Ltd & Ors [2008] HCA 41: The Tax Office agreed with all of the court's findings in this decision. The High Court had found that the Tax office had the right to seek recovery of a debt where the debt in question may have been subject to a Part IVC review and was the subject of a genuine dispute. 

Tax Cases

Lawrence v FCT  [2008] FCA 1497, 10 October 2008: The Federal Court found that loans received by the taxpayer, from two trusts as the conclusion of a series of transactions, bore the hallmarks of a dividend stripping scheme. The Court therefore upheld the inclusion of a distribution of profits by way of loans as assessable income of the taxpayer. The Court did reduce the administrative penalty component of the amended assessment. 
 
Uratoriu v FCT [2008] FCA 1531, 16 October 2008: The Court upheld the Commissioner of Taxation's garnishee notice to the taxpayer's bank. The Commissioner's reasons for issuing the notice included the taxpayer's previous unreliability in debt repayment and the increasing General Interest Charge. The Court found that the Commissioner had not acted improperly in issuing the notice.