Greenwoods and Freehills Weekly Tax Highlights - Week Ended 1.5.09

ATO Documents

Released 29.4.09

Draft Taxation Determination
TD 2009/D1: Income tax: does the term 'real property' in paragraph 855-20(a) of the Income Tax Assessment Act 1997 include a leasehold interest in land?
Goods and Services Tax Ruling
GSTR 2009/3: Goods and services tax: cancellation fees
Miscellaneous Tax Ruling
MT 2009/1: Miscellaneous taxes: notification requirements for an entity under section 105-55 of Schedule 1 to the Taxation Administration Act 1953
Product Rulings
PR 2009/19: Income tax: Black Truffle Project 2001
PR 2009/20: Income tax: Great Southern 2009 Renewable Fibre Project
PR 2009/21: Income tax: tax consequences of investing in ANZ Protected Equity Leveraged Solutions II
Draft Taxation Ruling
TR 2009/D2: Income tax: trading stock - treatment of discounts, rebates and other trade incentives offered by sellers to buyers
Addendum
GSTR 2001/8: Goods and services tax: apportioning the consideration for a supply that includes taxable and non-taxable parts
Law Administration Practice Statement
PS LA 2009/3: Time limit on recovery by the Commissioner

Released 1.05.09

Interpretative Decisions
ATO ID 2009/28: Capital Allowances: depreciating asset - rights to virtual land
ATO ID 2009/29: Superannuation Contributions: return of contribution by self managed superannuation fund - after 30 day time limit
Withdrawn Interpretative Decision
ATO ID 2001/10: Superannuation contributions surcharge (Advance Payment of Long Service Leave) 
ATO ID 2001/455: Superannuation contributions surcharge: lump sum payment in arrears  
ATO ID 2001/515: Superannuation contributions surcharge assessment - calculation of a member's surchargeable contributions 
ATO ID 2007/78: Capital Gains Tax: amendment of assessments to give effect to the timing rule 
ATO ID 2008/24: Foreign Hybrid Limited Partnership: UK limited partnership

Released 30.4.09

Woodside Energy Ltd v Commissioner of Taxation: The ATO has released a Decision Impact Statement on the Full Federal Court decision in Woodside Energy Ltd v FCT. The ATO states that the decision confirms their initial view that Woodside Energy's hedging losses were not capable of being regarded as expenses payable in relation to the sale of oil for the purposes of Petroleum Resource Rent Tax Assessment Act 1987.

Released 27.4.09
 
In response to the Review of Aspects of Income Tax Self Assessment's recommendation that private rulings should be easier to understand, the ATO has announced that from May 2009, a private ruling will, when issued consist of:  

the ruling notice and reasons for decision;
a fact sheet giving administrative information and rights of review;
the edited version of the ruling; and
if necessary, a discussion of any matters not ruled on.

Released 28.4.09

The Assistant Treasurer  has released exposure draft legislation and associated explanatory material to improve the income tax consolidation regime. The draft legislation follows on from announced changes to enhance the consolidation regime and improve interactions with other parts of the law. The legislation is proposed as part of the Tax Laws Amendment (2009 Measures No 4) Bill 2009. For an in-depth analysis of the exposure draft please refer to the associated G&F Tax Brief.

Released 28.4.09

The Minister for Superannuation and Corporate Law and a coalition of superannuation industry bodies have released a Communiqué of Principles on the Australian Superannuation System. The Communique includes a resolution that the current operational features of the system be examined. The review process will examine the structure, operation and efficiency of the superannuation system. The parties also agreed that such an examination be conducted across the system as a whole and complement the work already undertaken by the Henry Tax System Review.

BHP Billiton Finance Ltd v FCT [2009] FCA 276: The Commissioner has appealed to the Full Federal Court against the decision of a single judge of the Federal Court. The Federal Court had found that the taxpayer, which was a subsidiary of BHP Billiton established as an internal financier of the group, was entitled to a deduction under the bad debt provisions in relation to amounts it had lent to two other subsidiaries.

Anstis v FCT [2009] FCA 286: The Commissioner has appealed to the Full Federal Court against the decision of a single judge of the Federal Court. The Federal Court had held that self-education expenses were deductible as the expenses were incurred as a necessary incident of deriving assessable income (Youth Allowance).

Pre Paid Professional Administration Ltd v DCT [2008] FCA 1580: The taxpayer has appealed to the Full Federal Court against the decision of a single judge of the Federal Court. The Federal Court had held that amounts held by the taxpayer were assessable administration fees and were not held as agent for other entities.

FCT v Swansea Services Pty Ltd [2009] FCA 402, 24 April 2009: The Federal Court has rejected the Commissioner's argument that the acquisition of artworks and antiques by a taxpayer did not constitute the carrying on of an enterprise for GST purposes. The Commissioner was not satisfied that the taxpayer's activities amounted to the carrying on of an enterprise within the meaning of s 25-55 of the GST Act and cancelled the taxpayer's GST registration. The Federal Court accordingly found that the GST Act does not state that an investment activity will not amount to carrying on an enterprise nor that an enterprise must have regular, continuous sales. The Federal Court accordingly reached the conclusion that the taxpayer was carrying on an enterprise.