Greenwoods & Freehills Weekly Tax Highlights - Week Ended 9.10.09
ATO Documents
Released 7.10.09
Final Goods and Services Tax Determination
GSTD 2009/2: 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?
Final Class Rulings
CR 2009/59: Income tax: deductibility of employer contributions to the National Entitlement Security Trust
CR 2009/60: Income tax: Lion Nathan Limited - proposed acquisition by Kirin Holdings Company, Limited - Employee Share Acquisition Plan
CR 2009/61: Income tax: off-market share buy-back: Gotalk Limited
Final Taxation Determinations
TD 2009/19: Income tax: does a taker in default of trust capital have an 'interest in the trust capital' for the purposes of CGT event E8 in section 104-90 of the Income Tax Assessment Act 1997
TD 1993/62W: Income tax: is a building write-off deduction under Division 10D available to a taxpayer who acquires a building (e.g. house, flat or home unit) in respect of which qualifying expenditure has been incurred by any of its owners?
Addenda
CR 2007/16: Fringe benefits tax: employer clients of PBI Benefit Solutions Pty Ltd who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 whose employees make use of an Employee Benefits Card (Meal Entertainment) facility
CR 2007/17: Fringe benefits tax: employer clients of PBI Benefit Solutions Pty Ltd who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 whose employees make use of an Employee Benefits Card (Everyday Purchases) facility
Released 9.10.09
Interpretative Decisions
ATO ID 2009/109: Disability superannuation benefit
GST Administration Exposure Draft
Released 6.10.09
Treasury has released an exposure draft of the Tax Laws Amendment (2009 GST Administration Measures) Bill 2009, and accompanying draft explanatory memorandum. Treasury has also released corresponding regulations and an explanatory statement. The package of materials will implement the following measures:
Australia - Guernsey Tax Information Exchange Agreement
Announced 8.10.09
The Treasurer has announced that Australia and Guernsey have signed a Tax Information Exchange Agreement (TIEA). The TIEA will provide for a more comprehensive exchange of information on request for both civil and criminal tax purposes. The Treasurer also announced the signing of an agreement for the allocation of taxing rights. This additional agreement will allocate taxing rights over certain income derived by retirees, government employees and students and provide a mechanism to help resolve transfer pricing disputes.
Appeals Update
Butler v Commissioner of Taxation [2009] FCA 1105 (2 October 2009): The Federal Court has dismissed the taxpayer's application to appeal the decision at first instance. The AAT had found that the taxpayer had failed to discharge the burden of proof that an increase to GST liability, arising from an audit, was excessive. The Federal Court found that the appeal application did not identify any question of law, but rather merely attacked the AAT's findings of fact.
Tax Case
Soubra and Commissioner of Taxation [2009] AATA 775 (8 October 2009): The AAT has confirmed that a taxpayer would not be entitled to "flow-on" franking credits in respect of franked distributions received from an employee share plan trust. The AAT found that the taxpayer would not be a "qualified person" in terms of the "45 day holding rule" in s 160APHP of the ITAA 1936. The Commissioner had ruled against the taxpayer's claim in a Private Binding Ruling request and had dismissed the taxpayer's subsequent late objection against the ruling.
New Zealand Tax Case
Westpac Banking Corporation v Commissioner of Inland Revenue (8 October 2009): The High Court of New Zealand has held that certain structured finance transactions entered into by the taxpayer and overseas counterparties were "tax avoidance arrangements" and therefore void as against the Commisioner. The transactions involved subsidiary companies purchasing preference shares issued by specially formed subsidiaries within a counterparty group of companies in the US or UK. A subsidiary within the counterparty group then assumed an obligation to repurchase the shares in five years or less. The taxpayer also paid the subsidiary a guarantee procurement fee to procure the parent company's guarantee of the subsidiary's obligations. The High Court found that whilst each arrangement had a genuine commercial purpose, the underlying purpose of the arrangement was to gain a tax benefit. The High Court therefore held that the taxpayer was not entitled to claim certain deductions associated with the arrangement.
Progress of Legislation
As at 9.10.09
|
Bill |
Explanatory Memorandum |
Intro House |
Passed House |
Intro Senate |
Passed Senate |
Date of Royal assent / Act Number |
Description |
|
Carbon Pollution Reduction Scheme (Consequential Amendments) Bill 2009 |
14.5.09 |
4.6.09 |
15.6.09
|
|
|
Carbon Production Reduction Scheme, Income Tax And GST Treatment | |
|
Customs Tariff Amendment (2009 Measures No 1) Bill 2009 [No 2] |
22.6.09 |
22.6.09 |
23.6.09 |
|
|
Bill to increase the customs duty rate applying to certain alcoholic beverages | |
|
Excise Tariff Amendment (2009 Measures No 1) Bill 2009 [No 2] |
22.6.09 |
22.6.09 |
23.6.09 |
|
|
Bill to increase the excise rate applying to certain alcoholic beverages | |
|
13.2.09 |
13.2.09 |
12.2.09
|
12.2.09
|
18.2.09/4 |
Various Bonuses for Household Situations | ||
|
19.3.09 |
|
|
|
|
Tax Information Exchange Agreement: British Virgin Islands and Isle of Man | ||
|
13.11.08 |
11.2.09 |
12.2.09
|
12.3.09
|
26.3.09/13 |
Introduces a new legislative regime for Tax Agents | ||
|
Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill 2009 |
24.6.09 |
|
|
|
|
Facilitating the introduction of the new legislative regime for Tax Agents | |
|
13.2.09 |
13.2.09 |
12.2.09
|
12.2.09
|
18.2.09/5 |
Tax Bonus for Working Australians | ||
|
Tax Bonus for Working Australians (Consequential Amendments) (No.2)Bill 2009 |
13.2.09 |
13.2.09 |
12.2.09
|
12.2.09
|
18.2.09/6 |
Tax Bonus for Working Australians | |
|
12.2.09 |
18.3.09 |
19.3.09
|
19.3.09
|
26.3.09/27 |
PAYG Instalments, Temporary Resident's Superannuation, Income Test. | ||
|
19.3.09 |
27.5.09 |
15.6.09
|
17.6.09
|
23.6.09/42 |
CGT Concessions, Urban Water Tax Offset, Deductible Gift Recipient List, Fuel Tax Credits Regime | ||
|
14.5.09 |
27.5.09 |
15.6.09
|
18.6.09
|
24.6.09/47 |
GDP Adjustment, GST, PRRP, Deductible Gift Recipient List | ||
|
25.6.09 |
7.9.09 |
8.9.09 |
10.9.09 |
|
R&D, Prescribed private funds, Demutualisation of friendly societies, Consolidation | ||
|
27.5.09 |
1.6.09 |
15.6.09
|
24.6.09
|
29.6.09/62 |
Superannuation Contributions, Foreign Income Exemption, GDP, PAYG Instalments, Deductible Gift Recipients, | ||
|
Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2009 |
28.5.09 |
4.6.09 |
15.6.09
|
15.6.09
|
23.6.09/41 |
Medicare Levy and Medicare Levy Surcharge | |
|
27.8.08 |
13.10.08 |
14.10.08
|
3.2.09
|
|
Removes Tax Deductibility of Political Donations, GST | ||
|
Tax Laws Amendment (Small Business and General Business Tax Break) Bill 2009 |
13.3.09 |
13.5.09 |
14.5.09
|
14.5.09
|
22.5.09/31 |
Temporary Income Tax Deduction for New Investment in Tangible Depreciating Assets | |
|
Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2008 |
4.12.08 |
11.2.08 |
12.2.09
|
11.3.09
|
26.3.09/15 |
Division 230. Stages 3 and 4 of TOFA, these being hedging and non-hedging rules | |
|
16.9.08 |
|
|
|
|
GST, PAYG Instalments, Bushfire Appeal |