Greenwoods and Freehills Weekly Tax Highlights - Week Ended 3.4.09

ATO Documents

Released 1.04.09

Taxation Determination
TD 2009/10: Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2009?
Product Rulings
PR 2009/15: Income tax: ITC Sandalwood Project 2009
PR 2009/16: Income tax: Arafura Pearl Project 2009
Class Ruling
CR 2009/18: Fringe benefits tax: employers who are corporate members of Charter Drive Pty Limited and whose employees, as individual members, hire cars from Charter Drive Pty Limited
Addendum
PR 2008/60: Income tax: 2009 Willmott Forests Premium Forestry Blend Project
Taxpayer Alerts
TA 2009/6: Use of uncommercial indirect marketing arrangements to reduce wine equalisation tax (WET)
TA 2009/7: Uncommercial contract manufacture arrangements to claim the wine equalisation tax (WET) producer rebate

Released 3.4.09

Interpretative Decisions 
ATO ID 2009/18: GST and sale of vacant land after removal of a damaged house that had been used solely in connection with input taxed supplies
ATO ID 2009/19: GST and sale of vacant land used in connection with input taxed supplies and property development activities
ATO ID 2009/20: GST and sale of vacant land and demountable dwelling used solely in connection with input taxed supplies
Withdrawn Interpretative Decisions
ATO ID 2002/387: Income Tax: Capital gains tax: capital improvements - subdivision of land
ATO ID 2003/822: Capital gains tax: date of disposal - Xstrata Holdings Pty Ltd takeover of MIM Holdings Ltd
ATO ID 2004/769: Foreign assessable income and foreign allowable deductions
ATO ID 2004/814: Deductibility of losses incurred by a resident from carrying on a business as a trader in futures listed on the futures exchange in the United States of America
ATO ID 2004/815:  Deductibility of losses incurred by a resident from carrying on a business as a trader in futures listed on the futures exchange in the United Kingdom
ATO ID 2004/816: Deductibility of losses incurred by a resident from carrying on a business as a trader in futures listed on the futures exchange in Canada
ATO ID 2004/817: Deductibility of losses incurred by a resident from carrying on a business as a trader in futures listed on the futures exchange in Germany
ATO ID 2004/818: Deductibility of losses incurred by a resident from carrying on a business as a trader in futures listed on the futures exchange in Singapore 
ATO ID 2007/184: Non-portfolio dividend received by a taxpayer through its permanent establishment in Hong Kong  

Anstis v FCT [2009] FCA 286, 1 April 2009: A single Judge of the Federal Court has overturned a decision of the AAT and allowed a taxpayer deductions for self-education expenses. The taxpayer argued that the expenses were incurred in order to produce assessable income, in this case being Youth Allowance payments. Ryan J agreed with the taxpayer that the various eligibility and qualifying requirements for Youth Allowance (i.e. being enrolled in an educational institution etc.) can only be satisfied by the expenditure of money. Accordingly, Ryan J found that such expenditure is incurred in producing the Youth Allowance amounts within the meaning of s.8-1. 

BHP Billiton Finance Limited v Commissioner of Taxation [2009] FCA 276, 30 March 2009: A single Judge of the Federal Court has held that the taxpayer, a BHP subsidiary established as an internal financier of the group, was entitled to bad debt deductions for money lent to two other entities within the group in relation to mining ventures which subsequently failed. Gordon J found, among other things, that the taxpayer was in the "business of lending money" despite it not carrying on any lending activities outside of the BHP Billiton group.

Pape v Commonwealth of Australia, 3 April 2009: The High Court has held that the Tax Bonus for Working Australians Act (No.2) 2009 - the legislation for making tax bonus payments - was a valid Commonwealth Law. The High Court will release the reasons for this decision at a later date.