G&F Weekly Tax Highlights - Week ended 26.06.09

ATO Documents
Released 24.6.09
Final Rulings
Final Taxation Ruling
TR 2009/4: Income tax: effective life of depreciating assets (applicable from 1 July 2009)
Goods and Services Tax Ruling
GSTR 2009/4: Goods and services tax: new residential premises and adjustments for changes in extent of creditable purpose
Self Managed Superannuation Fund Rulings
SMSFR 2009/3: Self Managed Superannuation Funds: application of the Superannuation Industry (Supervision) Act 1993 to unpaid trust distributions payable to a Self Managed Superannuation Fund
SMSFR 2009/4: Self Managed Superannuation Funds: the meaning of 'asset', 'loan', 'investment in', 'lease' and 'lease arrangement' in the definition of an 'in-house asset' in the Superannuation Industry (Supervision) Act 1993
Notices
Taxation Ruling
TR 2008/4W: Income tax: effective life of depreciating assets (applicable from 1 July 2008)
Goods and Services Tax Rulings
GSTR 2000/28A3 - Addendum: Goods and services tax: attributing GST payable or an input tax credit arising from a sale of land under a standard land contract
GSTR 2003/6A1 - Addendum: Goods and services tax: transfers of enterprise assets as a result of property distributions under the Family Law Act 1975 or in similar circumstances
GSTR 2006/2A2 - Addendum: Goods and services tax: deposits held as security for the performance of an obligation
Product Rulings
PR 2009/5A1 - Addendum: Income tax: TFS Sandalwood Project 2009
Released 25.6.09
Legislative Determination
TPAL 2009/1: Income Tax returns
Released 26.6.09
New Interpretative Decisions
ATO ID 2009/42: Capital Allowances: business related costs - business proposed to be carried on
ATO ID 2009/43: Capital Gains Tax: CGT event J1 - interposing a partnership in a wholly-owned group
ATO ID 2009/44: Consolidation: MEC group - interposition of a partnership of foreign resident wholly-owned subsidiaries of a top company, between the top company and an eligible tier-1 company
ATO ID 2009/45: Entertainment Facility Leasing Expenses: private function room and hotel room expenses
ATO ID 2009/46: Fuel Tax: apportionment of fuel and calculating the quantity of fuel for use in carrying on an enterprise based on average hourly fuel consumption
ATO ID 2009/47: Capital Allowances: tax break - used for the principal purpose of carrying on a business

Withdrawn Interpretative Decisions
ATO ID 2001/517W: Superannuation provider's liability to pay surcharge assessment where it ceases to be the holder of surchargeable contributions
ATO ID 2001/518W: Member's liability to pay surcharge assessment as holder of surchargeable contributions
ATO ID 2001/9W: Superannuation: Eligible Termination Payments (Lump Sum UK Pension Scheme)
ATO ID 2002/134W: Superannuation, retirement & employment termination: Lump sum payment from a foreign superannuation fund
ATO ID 2002/284W: Superannuation, retirement and employment termination: Lump sum and pension from overseas superannuation fund. Amount to which section 27CAA of the Income Tax Assessment Act 1936 (ITAA 1936) applies
ATO ID 2002/558W: Superannuation retirement and employment termination: Superannuation Pension Rebate. Taxpayer discharged from employment on medical grounds
ATO ID 2004/353W: Superannuation: foreign tax credits - tax paid by overseas superannuation fund
ATO ID 2004/563W Foreign Income and Foreign Losses: income derived from trading shares on the Hong Kong stock exchange

Belgium DTA Protocol: exchange of information
The Governments of Australia and Belgium have signed a Second Protocol to the 1977 DTA to include a new Article 26 which accords with the OECD standard for the exchange of tax information.

OECD: exchange of information scorecard
The OECD has released an updated report on Jurisdictions Committed to Improving Transparency and Establishing Effective Exchange of Information in Tax Matters (as at 24 June 2009).

Tax Office website updates
NTLG Finance and Investment Sub-group minutes: 6 March 2009 meeting. Topics discussed included: an update from Treasury on TOFA, what is an “effectively non-contingent obligation” for the purposes of the debt test, examples of limited recourse debt clauses, and s.25-90 where debt is used to fund investments in foreign companies.
Foreign exchange: guide to functional currency rules. The ATO has published a guide containing an overview of the functional currency rules, including eligibility requirements and the implications for tax accounting and tax reporting.

Tax Cases
3D Scaffolding Pty Limited v Commissioner of Taxation [2009] FCAFC 75 (22 June 2009). The Full Federal Court has dismissed the taxpayer’s appeal, and upheld the prior decisions of the AAT and the Federal Court that the company taxpayer was not entitled to deductions for payments it argued were made for the hiring of scaffolding equipment, and that the director of the company was subject to Division 7A in respect of the payments.
Hogan v Australian Crime Commission [2009] FCAFC 71 (19 June 2009). The Full Federal Court has dismissed the taxpayer’s appeal, and upheld the prior decision of the Federal Court to lift all previous orders restricting or preventing the publication of evidence and other material relating to the Wickenby investigation of the taxpayer’s affairs.

Legislative Update
The following Bills have been introduced in the House of Representatives:
Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill 2009
Tax Laws Amendment (2009 Measures No 4) Bill 2009
The Excise Tariff Amendment (2009 Measures No 1) Bill 2009 [No 2] and the Customs Tariff Amendment (2009 Measures No 1) Bill 2009 [No 2], the “alcopops” Bills, were introduced and immediately passed by the House of Representatives. The Bills now move to the Senate for debate after Parliament resumes on 11 August 2009.
The Tax Laws Amendment  (Budget Measures No 1) Bill 2009  has now been passed by the House of Representatives and the Senate awaits Royal Assent.

The following Bills have received Royal Assent:
Tax Laws Amendment (2009 Measures No 2) Bill 2009
Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2009
Tax Laws Amendment (2009 Measures No 3) Bill 2009

Progress of Legislation
As at 26.6.09