Greenwoods & Freehills Weekly Tax Highlights - Week Ended 26.2.10

ATO Documents

Released 24.2.09

Class Rulings
CR 2010/3: Income tax: return of capital: Lion Selection Limited
CR 2010/4: Income tax: demerger of Lion Selection Group Ltd by Lion Selection Ltd
CR 2010/5: Income tax: allowances received by attendees at Centrelink reference group meetings
CR 2010/6: Income tax: scrip for scrip: exchange of Unilife Medical Solutions Limited shares or options for equivalent Unilife Corporation securities
Product Ruling
PR 2010/3: Income tax: AIL Almond Grower Project - 2010 (on or before 15 June 2010)
Taxation Determination
TD 2010/1: Income tax: consolidation: capital gains: does paragraph 40-880(5)(f) of the Income Tax Assessment Act 1997 prevent the deduction, under section 40-880 of that Act, of incidental costs described in subsection 110-35(2) of that Act that the head company of a consolidated group or MEC group incurs, in disposing of shares in a subsidiary member to a non-group entity, before the member leaves the group?
Wine Equalisation Tax Determination
WETD 2010/1: Wine equalisation tax: what are the results for Wine Equalisation Tax purposes for entities engaging in an arrangement described in Taxpayer Alert TA 2009/6?
Addendum 
Superannuation Guarantee Ruling
SGR 2009/1: Superannuation guarantee: meaning of the terms 'ordinary time earnings' and 'salary or wages'

Released 25.2.09

Taxation Ruling
TR 2010/1: Income tax: superannuation contributions
Self Managed Superannuation Funds Ruling
SMSFR 2010/1: Self Managed Superannuation Funds: the application of subsection 66(1) of the Superannuation Industry (Supervision) Act 1993 to the acquisition of an asset by a self managed superannuation fund from a related party 

Released 26.2.10

New Interpretative Decisions
ATO ID 2010/48: Company tax loss: whether a tax loss which is disallowed following an injection of income is cancelled
ATO ID 2010/49: Company tax loss: whether the Commissioner can be prevented from disallowing any part of a tax loss following an injection of income
ATO ID 2010/50: Excise: subitem 15.2 and process oils
ATO ID 2010/51: Exempt income: civilian employee of an international peacekeeping force - income earned after 1 July 2009
Withdrawn Interpretative Decisions
ATO ID 2002/541: Capital gains tax: CGT event G1: payment a dividend
ATO ID 2002/693: Capital Allowances: cost - interaction of car limit and input tax credit
ATO ID 2003/1025: Capital gains tax: cost base of interest in the Tower Safe Trust
ATO ID 2003/1026: Capital gains tax: rollover relief - transfer of assets between Australian resident companies in same wholly-owned group during the period 1 July 2002 to 30 June 2003 - both companies members of separate consolidated groups
ATO ID 2003/1049: Compensation: surrender of a right to seek compensation 
ATO ID 2003/258: CGT: Bankruptcy - prior year net capital losses disregarded
ATO ID 2003/454: CGT small business retirement exemption - whether 'capital proceeds' received
ATO ID 2003/455: CGT small business concessions: controlling individual - unit trust with discretionary trust unit holder 
ATO ID 2003/469: Capital gains tax: cost base - fourth element - subdivision costs
ATO ID 2003/503: CGT small business concessions: active asset test - sale of part of a business - not a cessation
ATO ID 2003/987: Continuity of ownership tests: listed public company can't establish owners at start of test period - no abnormal trading in shares during loss year - test time for the same business test
ATO ID 2003/988: Continuity of ownership tests: listed public company can't establish owners at start of test period - abnormal trading in shares during loss year - test time for the same business test
ATO ID 2004/173: Excise: suspension of producer licence - protection of the revenue
ATO ID 2004/499: Group company loss transfers: excess franking offset converted into tax loss 
ATO ID 2004/515: Commercial debt forgiveness: notional value of debt - change in creditor
ATO ID 2007/121: Fuel Tax Credits: graders travelling on a public road and the application of the road user charge
ATO ID 2007/133: Fuel Tax Credit: early payments and entitlement to a credit under the energy grants credit scheme
ATO ID 2007/135: Fuel Tax Credits: early payments and registration for the energy grants credit scheme
ATO ID 2007/54: Fuel Tax Credits: attributing fuel tax credits by reference to the quantity of fuel actually used
ATO ID 2007/55: Fuel Tax Credits: GST groups and membership of approved environmental programmes

Protocol to Australia/Malaysia Double Tax Agreement Signed

On 24 February 2010, the Assistant Treasurer signed a Protocol to amend the Australia/Malaysia tax treaty, in particular to enable a greater exchange of information between the two countries relating to tax affairs, including banking details and transactions.

Appeal Update

Sunchen Pty Ltd v Commissioner of Taxation [2010] FCA 21 (29 January 2010): The taxpayer has appealed to the Full Federal Court against Perram J’s decision that they were not entitled to an input tax credit with respect to the acquisition of a residential property, despite it being purchased subject to an existing lease, and with a development application for the construction of 10 units.