Greenwoods and Freehills Weekly Tax Highlights - Week Ended 10.4.09

ATO Documents

Released 8.04.09

Goods and Services Tax Determination
GSTD 2009/1: Goods and services tax: is a supply by way of an in specie distribution of an asset that is applied in an enterprise carried on by a discretionary trust to a beneficiary of the trust made 'in the course or furtherance of' the trust's enterprise?
Draft Goods and Services Tax Determination
GSTD 2009/D1: Goods and services tax: are there GST consequences when a partner in a partnership takes goods held as trading stock for private or domestic use?
Goods and Services Tax Rulings
GSTR 2009/1: Goods and services tax: general law partnerships and the margin scheme
GSTR 2009/2: Goods and services tax: partitioning of land
Addenda
GSTR 2003/3: Goods and services tax: when is a sale of real property a sale of new residential premises?
GSTR 2003/13: Goods and services tax: general law partnerships
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
Errata
PR 2009/1: Income tax: FEA Plantations Project 2008 Late Grower - Option 1 Woodlot
PR 2009/2: Income tax: FEA Plantations Project 2008 Late Grower - Option 2 Woodlot
PR 2009/3: Income tax: FEA Plantations Project 2008 Late Grower - Option 3 Woodlot
PR 2009/4: Income tax: FEA Plantations Project 2008 Late Grower - Option 4 Unit
Notices of Withdrawal
GSTD 2003/2: Goods and services tax: are there GST consequences when a partner in a partnership takes goods held as trading stock for private or domestic use?
MT 2007/1: Miscellaneous taxes: does paragraph 284-220(1)(e) of Schedule 1 to the Taxation Administration Act 1953 apply to increase the base penalty amount applicable to a subsection 284-75(3) penalty where the entity was liable to the same penalty for a previous accounting period?

Released 9.4.09
Statement of Administrative Treatment
TOFA Amendments: qualifying forex accounts and the retranslation election:  The Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 made two important changes to relevant qualifying  forex accounts (applicable retrospectively from 17 December 2003):
    (i) extending the definition of qualifying forex account; and
    (ii) providing an additional 90 day period from 26 March 2009 to 24 June 2009 to make a retrospective retranslation election for certain qualifying forex accounts.
The ATO has stated that it will allow these changes to run within the self-assessment regime. Broadly, taxpayers that anticipated the change correctly need take no further action - taxpayers that did not anticipate the change will need to amend their earlier assessments.
Law Administration Practice Statement
PS LA 2009/2: The priority ruling process, under which class rulings as well as private rulings, can now be sought on a priority basis. 

Released 6.4.09

The Inspector-General of Taxation has released the Terms of Reference and Consultation Plan for the inquiry into the Tax Office's administration of private rulings. The review follows on from the decision of the ATO to retain the publicly available register of edited private rulings. The Inspector-General will seek to address community concerns about the timeliness of the rulings and the extent to which they are binding. Submissions are due by 15 May 2009.

Commonwealth Bank of Australia v DCT [2009] FCA 226: The taxpayer has appealed to the Full Federal Court. The Federal Court at first instance had dismissed the appeal by the taxpayer against the ATO's disallowance of  $15m in depreciation deductions claimed on the basis of a step-up in the tax costs of assets transferred to the taxpayer upon it becoming the head company of a tax consolidated group.

FCT v Malouf [2009] FCAFC 44, 2 April 2009: The Full Federal Court has unanimously overturned the decision of the Federal Court at first instance and held that the obligation to pay the balance of a purchase price under a contract would be incurred in the income year the final payment was made, and not the year the contract was entered into. The Court allowed the Commissioner's appeal, holding that the nature of the contract meant that the taxpayer's liability could only be incurred upon settlement of the contract. Broadly, this was because the liability to pay that amount was subject to a contingency, being the completion of a particular stage of a construction project. Accordingly there was no presently existing liability that was incurred by the taxpayer at the time of entering into the contract.