Greenwoods & Freehills Weekly Tax Highlights - Week Ended 26.3.10

ATO Documents

Released 24.3.10

Class Ruling
CR 2010/9: Income tax: assessable income - Keno commission received by registered NSW Clubs
Product Ruling
PR 2010/6: Income tax: TFS Sandalwood Project 2010
Draft Taxation Ruling
TR 2010/D1: Income tax: the relevance of 'economic compulsion' in deciding whether an issuer of a financing arrangement has an 'effectively non-contingent obligation' for the purposes of section 974-135 of the Income Tax Assessment Act 1997
Taxation Determinations
TD 2010/2: Fringe benefits tax: for the purposes of section 135C of the Fringe Benefits Tax Assessment Act 1986, what is the exemption threshold for the fringe benefits tax year commencing on 1 April 2010?
TD 2010/3: Fringe benefits tax: for the purposes of section 28 of the Fringe Benefits Tax Assessment Act 1986 what are the indexation factors for valuing non-remote housing for the fringe benefits tax year commencing on 1 April 2010?
TD 2010/4: Fringe benefits tax: for the purposes of Division 7 of Part III of the Fringe Benefits Tax Assessment Act 1986, what amount represents a reasonable food component of a living-away-from-home allowance for expatriate employees for the fringe benefits tax year commencing on 1 April 2010?
TD 2010/5: Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing on 1 April 2010?
TD 2010/6: Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2010? 
Addendum
TD 92/129: Income tax: capital gains: if a person builds a principal residence straddling two post-CGT blocks acquired at different times, what is the 'relevant commencing date' for the purposes of subsection 160ZZQ(5AA) of the Income Tax Assessment Act 1936?  

Released 26.3.10

New Interpretative Decisions
ATO ID 2010/69: Capital Allowances: business related costs - limitation of deduction - could be taken into account in working out the amount of a capital gain or capital loss - time allowed to amend assessment expired 26 March 2010
ATO ID 2010/70: Functional currency choice: repayment of principal amounts on loans denominated in a non-AUD currency which later becomes the 'applicable functional currency'
ATO ID 2010/71: Functional currency choice: repayment of principal amounts on loans denominated in a non-AUD currency other than the one which later becomes the 'applicable functional currency'
Withdrawn Interpretative Decisions
ATO ID 2002/1013: Depreciating Assets and Input Tax Credits
ATO ID 2003/396: Deducting tax loss: saving rule - loss not realised in ownership test period
ATO ID 2003/755: Capital Allowances: effect of certain GST decreasing adjustments on depreciating assets
ATO ID 2003/911: CGT: Rollover of assets held in a low-value pool from a partnership to a wholly-owned company
ATO ID 2003/936: Energy Grants (Credits) Scheme: off-road entitlements - 'at' residential premises - generator located on a wharf next to a vessel
ATO ID 2003/966: Division 149B: transfer of shares on death of a spouse
ATO ID 2003/969: Capital gains tax: transfer of Australian asset between foreign resident companies
ATO ID 2004/269: Capital Allowances: plant - breakwater
ATO ID 2004/421: Energy Grants Credits Scheme: off-road credit - electricity generation - retail/hospitality - ready access - no safe access to power supply
ATO ID 2004/422: Energy Grants Credits Scheme: off-road - electricity generation - retail/hospitality - ready access - power supply insufficient for the needs of the business
ATO ID 2004/423: Energy Grants Credits Scheme: off-road credit - electricity generation - retail/hospitality 26 March 2010
ATO ID 2004/469: Energy Grants Credits Scheme: off-road - generation of electricity - retail/hospitality - ready access - commercial power supply insufficient at certain times
ATO ID 2004/628: Energy Grants Credits Scheme: off-road credit - generation of electricity - retail/hospitality - ready access - emergency backup generators
ATO ID 2004/629: Energy Grants Credits Scheme: off-road credit - generation of electricity - retail/hospitality - ready access - loss of commercial power supply
ATO ID 2004/640: Energy Grants Credits Scheme: off-road credit - generation of electricity - retail enterprise - media broadcast vans
ATO ID 2004/643: Energy Grants Credits Scheme: off-road - electricity generation - retail/hospitality - 'retail sale' and 'principal purpose'
ATO ID 2004/897: Fuel Sale Grant Scheme: amendment of claims

Tax Information Exchange Agreements

Signed 20.3.10

On 20 March 2010, the Government of Australia signed Agreements for the Exchange of Information Relating to Taxes with Saint Vincent and the Grenadines, and with Anguilla. The Agreements provide for the exchange of information on request in both criminal and civil tax matters.

Orica Ltd v Commissioner of Taxation [2010] FCA 197 (10 March 2010): The Taxpayer has appealed to the Full Federal Court. The Federal Court held that a 1998 income tax year amended assessment which was issued to the taxpayer for a net capital gain of $264.5m from the disposal of distribution rights was excessive. The Court, on the basis of expert testimony, held that the market value consideration for the disposal (or release) of the rights was considerably less than the figure arrived at by the Commissioner of Taxation. The Court, in reaching this decision, found that the taxpayer owned the distribution rights for various pharmaceutical products. The Court dismissed the taxpayer's argument that the distribution rights had been previously sold to a third party and that the taxpayer was not therefore liable for the tax levied on the distribution rights.

Tax Laws Amendment (2009 Measures No. 6) Bill 2009  has received Royal Assent becoming Act no 19 of 2010.