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Withdrawn Interpretative Decisions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
New Zealand Double Taxation Agreement enters into force
The Assistant Treasurer has gazetted a notice under s 4A of the International Tax Agreements Act 1953 specifying that the revised DTA between Australia and New Zealand signed on 26 June 2009 entered into force on 19 March 2010. It is important to remember that the revised DTA did not actually take effect in Australia on that date. Broadly, the DTA has effect in Australia from 1 April 2010 for FBT purposes, 1 May 2010 for withholding tax purposes, and 1 July 2010 for other income tax purposes.
Appeals Update
Waffles Pty Ltd and Anor and Commissioner of Taxation [2010] AATA 78 (3 February 2010): The Commissioner has appealed to the Full Federal Court against the decision of the AAT. The AAT found that tax and GIC liabilities were “present legal obligations” and therefore should be taken into account in determining the “distributable surplus” of a company for the purposes of calculating the amount of a deemed dividend under the rules in Division 7A of the ITAA 1936 dealing with distributions from private companies.
Tax Case
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.
Progress of Legislation
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
|
Bill |
Explanatory Memorandum |
Intro House |
Passed House |
Intro Senate |
Passed Senate |
Date of Royal assent / Act Number |
Description |
|
Customs Tariff Amendment (2009 Measures No 1) Bill 2009 [No 2] |
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] |
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 | |
|
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 | ||
|
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 | ||
|
25.11.09 |
10.2.10 |
22.2.10
|
25.2.10
|
11.3.10/13 |
New Zealand Treaty, Belgian Protocol; Jersey Allocation of taxing rights | ||
|
Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill 2009 |
24.6.09 |
27.10.09 |
29.10.09 |
29.10.09 |
16.11.09/114 |
Employee Share Schemes | |
|
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 | ||
|
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 |
19.11.09 |
|
|
|
|
Disclosure and Secrecy Provisions | |
|
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 | |
|
Tax Laws Amendment (2009 GST Administration Measures) Bill 2009 |
25.11.09 |
10.2.10 |
22.2.10
|
11.3.10
|
24.3.10/20 |
GST | |
|
27.8.08 |
13.10.08 |
14.10.08
|
25.210
|
|
Removes Tax Deductibility of Political Donations, GST | ||
|
16.9.09 |
29.10.09 |
16.11.09
|
26.11.09
|
4.12.09/118 |
GST, PAYG Instalments, Bushfire Appeal | ||
|
25.11.09 |
10.2.10 |
22.10.10
|
11.3.10
|
24.3.10/19 |
CGT Cloning Exemption, Super Fund Mergers, DGR, Flood Victim Payments, Spirits Excise Rates | ||
|
10.2.10 |
10.3.10 |
11.3.10
|
|
|
Consolidation, Superannuation Clearing House, Managed Investment Trust, Forestry Managed Investment Schemes, Entrepreneurs Tax Offset. | ||
|
Tax Laws Amendment (2010 GST Administration Measures No. 1) Bill 2010 |
10.2.10 |
10.3.10 |
10.3.10
|
11.3.10
|
24.3.10/21 |
GST | |
|
17.2.10 |
|
|
|
|
Division 7A, TFN, Carbon Technology exemptions, DGR | ||
|
Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 |
18.2.10 |
|
|
|
|
GST | |
|
17.2.10 |
|
|
|
|
Tax Law Rewrite |