Greenwoods & Freehills Weekly Tax Highlights - Week Ended 22.1.10

22 January 2010

ATO Documents

Released 22.1.10

New Interpretative Decisions
ATO ID 2010/16: Eligible investment business: loan - Division 6C of the Income Tax Assessment Act 1936
ATO ID 2010/17: Eligible investment business: 'other security' - Division 6C of the Income Tax Assessment Act 1936
ATO ID 2010/18: GST and financial supplies made by a time-sharing scheme developer
ATO ID 2010/19: GST and the supply of excess accommodation by a time-sharing scheme
ATO ID 2010/20: GST and supplies of an interest in a time-sharing scheme to non-residents overseas

Exposure Draft - GST Administration
Released 22.1.10

Treasury has released an Exposure Draft: GST Administration Measures and Explanatory Memorandum. The Exposure Draft proposes changes originally announced in the 2009-2010 Federal Budget. These changes include allowing self-assessment of eligibility to form GST groups and joint ventures, and the introduction of indirect tax sharing agreements for GST groups to allow for "clear exits". The measures would also include the indirect tax ruling system and excise advice within the income tax rulings system and streamlining of tax invoice requirements.

Australia and Chile agree on tax treaty

Announced 22.1.10

On 22 January 2010, the Assistant Treasurer announced that Australia and Chile have reached an agreement in principle on the first income tax treaty between the two countries. No indication was given as to when the treaty is expected to be signed and introduced into the respective Parliaments.

Tax Case

Luxottica Retail Australia Pty Limited and Commissioner of Taxation [2010] AATA 22 (15 January 2010): The AAT has held that the supply of spectacles that comprised prescription lenses fitted into frames constituted a single supply. The taxpayer had argued that an offered discount related only to the frames even though the lenses were a required part of the sale. The AAT agreed with the Commissioner that the taxpayer made one supply.

Progress of Legislation

As at 22.1.10

Bill	Explanatory Memorandum	Intro House	Passed House	Intro Senate	Passed Senate	Date of Royal assent / Act Number	Description
Carbon Pollution Reduction Scheme (Consequential Amendments)No 2 Bill 2009	EM	22.10.09			.		Carbon Production Reduction Scheme, Income Tax And GST Treatment
Customs Tariff Amendment (2009 Measures No 1) Bill 2009 [No 2]	EM	22.6.09	22.6.09	23.6.09	13.8.09	27.8.09/74	Bill to increase the customs duty rate applying to certain alcoholic beverages
Excise Tariff Amendment (2009 Measures No 1) Bill 2009 [No 2]	EM	22.6.09	22.6.09	23.6.09	13.8.09	27.8.09/73	Bill to increase the excise rate applying to certain alcoholic beverages
Income Tax (TFN Withholding Tax (ESS)) Bill 2009	EM	21.10.09	16.11.09	17.11.09	2.12.09	14.12.9/132	Bill to increase the excise rate applying to certain alcoholic beverages
International Tax Agreements Amendment Bill (No. 1) 2009	EM	19.3.09	16.9.09	17.9.09	17.9.09 .	8.10.09/105	Tax Information Exchange Agreement: British Virgin Islands and Isle of Man
International Tax Agreements Amendment Bill (No. 2) 2009	EM	25.11.09			.		New Zealand Treaty, Belgian Protocol; Jersey Allocation of taxing rights
Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill 2009	EM	24.6.09	27.10.09	29.10.09	29.10.09	16.11.09/114	Employee Share Schemes
Tax Laws Amendment (2009 Measures No 4) Bill 2009	EM	25.6.09	7.9.09	8.9.09	10.9.09	18.9.09/88	R&D, Prescribed private funds, Demutualisation of friendly societies, Consolidation
Tax Laws Amendment (Budget Measures No. 2) Bill 2009	EM	21.10.09	16.11.09	17.11.09	2.12.09	14.12.09/133	Employee Share Schemes, Non-Commercial Losses, Lost Superannuation
Tax Laws Amendment (Confidentiality of Taxpayer Information) Bill 2009	EM	19.11.09					Disclosure and Secrecy Provisions
Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2009	EM	28.5.09	4.6.09	15.6.09	15.6.09 .	23.6.09/41	Medicare Levy and Medicare Levy Surcharge
Tax Laws Amendment (2009 GST Administration Measures) Bill 2009	EM	25.11.09			.		GST,
Tax Laws Amendment (Political Contributions and Gifts) Bill	EM	27.8.08	13.10.08	14.10.08	3.2.09 .		Removes Tax Deductibility of Political Donations, GST
Tax Laws Amendment (2009 Measures No 5) Bill 2009	EM	16.9.09	29.10.09	16.11.09	26.11.09 .	4.12.09/118	GST, PAYG Instalments, Bushfire Appeal
Tax Laws Amendment (2009 Measures No. 6) Bill 2009	EM	25.11.09			.		CGT Cloning Exemption, Super Fund Mergers, DGR, Flood Victim Payments, Spirits Excise Rates

These notes are in summary form designed to alert clients to tax developments of general interest. They are not comprehensive , they are not offered as advice and should not be used to formulate business or other fiscal decisions.

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