Greenwoods & Freehills Weekly Tax Highlights - Week Ended 9.4.10

ATO Documents

Released 31.3.10

Class Ruling
CR 2010/10: Income tax and fringe benefits tax: lump sum payments under the ANZ New Career Training Fund and the Past Employee Care Fund
Notices of Withdrawal
TD 93/37: Income tax: capital gains: where an asset owned by the deceased at the time of death passes to a remainderman on the death of a life tenant, what is the date of acquisition of the asset by the remainderman?
IT 2664: Income tax: capital gains and losses: the transfer of assets to beneficiaries in deceased estates 

Released 9.4.10

New Interpretative Decisions
ATO ID 2010/76: Superannuation benefits: deduction for insurance - increase in the untaxed element
ATO ID 2010/77: Foreign hybrid company: US limited liability company 
ATO ID 2010/78: Overseas employment exemption: employees engaged by a company which provides support services to the ADF, other Australian Government agency employees and other personnel deployed as part of Operation ASTUTE
ATO ID 2010/79: Overseas employment exemption: employees engaged by a company which provides support services to the AFP, other Australian Government agency employees and other personnel deployed in the RAMSI
ATO ID 2010/80: Exempt income: employees of a defence contractor - income earned after 1 July 2009
ATO ID 2010/81: US Limited Partnership: whether it is a company for the purposes of Article 10 of the US Convention
Withdrawn Interpretative Decisions
ATO ID 2001/542: Superannuation, retirement and employment termination: Assessable income includes post-June 83 taxed element.
ATO ID 2002/133: Superannuation, retirement & employment termination: Eligible termination payment. Compensation to the taxpayer for fraudulent use of their superannuation benefit. Payment not from a superannuation fund.
ATO ID 2002/159: Superannuation, retirement & employment termination: Eligible termination payment (ETP): ETP invalidity payment
ATO ID 2002/307: Superannuation, retirement and employment termination: Superannuation Pension Rebate/Tax Offset
ATO ID 2002/346: Superannuation, retirement & employment termination: Eligible termination payments (ETP) - Invalidity payments
ATO ID 2002/381: Retirement income entities - Investment and sole purpose: discount card shares
ATO ID 2002/479: Superannuation, retirement & employment termination: Eligible termination payment (ETP) and Payment in lieu of unused annual leave 
ATO ID 2002/514: Capital gains tax: cost base - fourth element: demolition expenses
ATO ID 2002/745: Capital gains tax: Choice for small business retirement exemption
ATO ID 2003/1178: GST and the sale of leased commercial property as a going concern
ATO ID 2003/279: Non Commercial Losses: Assessable income test - whether an increase in the value of trading stock on hand for an income year is assessable income 'from' the business activity.
ATO ID 2003/288: Non Commercial Losses: Assessable income test - whether a balancing adjustment is income 'from' the business activity.
ATO ID 2003/332: Non Commercial Losses: whether business bank interest is assessable income from the business activity
ATO ID 2003/358: Assessability of work in progress amount: transfer of work in progress to a company
ATO ID 2003/363: Non Commercial Losses: Lead Time Discretion - commercially viable period - purchase of business activity
ATO ID 2003/424: GST and registration of a maintenance reserve fund in a Queensland retirement village
ATO ID 2003/426: Non Commercial Losses: bounties, subsidies and grants - assessable income 'from' the business activity
ATO ID 2003/521: Medicare levy: family income reduction - taxpayer married on the last day of the income year
ATO ID 2003/542: Deductibility of costs of maintaining a patent
ATO ID 2003/557: Deduction: tax losses - deceased taxpayer
ATO ID 2003/564: Deductions: long term promotional display expenses
ATO ID 2003/565: Assessable income: government grant received by school bus operator
ATO ID 2003/566: Deductibility of administration fee for salary sacrifice arrangement
ATO ID 2003/567: Assessable income: farm business support grants
ATO ID 2003/593: Assessability of final dividend received from the liquidator of WoolStock Australia Ltd
ATO ID 2003/603: Non Commercial Losses: Commissioner's discretion - objective expectation of profit - cessation of business
ATO ID 2003/62: Non Commercial Losses: assessable income test - income from a personal income protection insurance policy is not income from a business activity
ATO ID 2003/653: Deductions: Self Education Expenses - life coaching program
ATO ID 2003/841: Deduction for interest expenses on borrowed funds used to purchase shares: no assessable income derived - company liquidated - taxpayer's subjective intention to derive assessable income
ATO ID 2003/871: Payment of a death benefit eligible termination payment (ETP) to a non-dependant beneficiary
ATO ID 2003/89: Non Commercial Losses: assessable income test - income 'from' a business activity
ATO ID 2004/128: Trading Stock - subdivision of farm land assessable as ordinary income and valuation of land
ATO ID 2005/181: Deductibility of money provided to the trustee of an employee share trust

Commissioner of Taxation v Rozman [2010] FCA 324 (1 April 2010): The Federal Court has confirmed that the deemed dividend provisions in Division 7A of the ITAA 1936 can apply to a payment made by a debtor of a company to one of its shareholders at the company’s direction. That is, the Federal Court has confirmed that a payment for the purposes of these rules can include a payment by direction.

Federal Parliament is now in recess until its scheduled resumption on 11 May 2010 (the day the Federal Budget will be handed down).

As at 2.4.10