Greenwoods & Freehills Weekly Tax Highlights 20.1.12
ATO documents
Class Rulings
CR 2012/3: Income tax: off-market share buy-back: Careers Australia Group Limited
CR 2012/4: Income tax: Toll Holdings Limited Senior Executive Options and Rights Plan
Addenda
GSTR 2004/1: Goods and services tax: reduced credit acquisitions
GSTII CC2: Non-commercial activities of charities, cost of supply and market value tests
Notices of Withdrawal
TD 96/39: Income tax: foreign income: can a controlled foreign company (CFC) obtain the benefit of the trading stock exemption under section 521 of the Income Tax Assessment Act 1936 ('the Act')?
TD 94/D84: Income tax: foreign income: does a voluntary payment made to a taxing authority exclude income from designated concession income as described in Income Tax Regulation 152D?
Withdrawn Interpretative Decision
ATO ID 2011/46: Primary production: election by trustee to defer tax profit and reduce cost of replacement live stock - effect of disentitling event being the death of a beneficiary
Disallowable deductions against rebatable benefits
As part of the 2011-12 Budget, the Government announced that it would amend the law to disallow deductions against government assistance payments following the High Court’s decision in Commissioner of Taxation v Anstis [2010] HCA 40. In Anstis the High Court held that study expenses of a tertiary student were deductible under s.8-1 of the 1997 Act on the basis that they were incurred in gaining or producing Youth Allowance payments.
On 20 January 2012, the Government released exposure draft legislation (and accompanying explanatory memorandum) to disallow deductions against government assistance payments that are eligible for a rebatable benefit. This would include, for instance, Youth Allowance and Newstart Allowance. The amendments are proposed to have effect from 1 July 2011
.GST financial supply provisions - exposure draft regulations
Draft regulations to implement the remaining changes to the GST financial supply provisions that were announced in the 2010-11 Budget. These measures are:
- simplifying the treatment of hire purchase transactions by making them fully taxable;
- expanding the range of expenses qualifying for a reduced input tax credit to include superannuation funds providing life insurance products, lenders' mortgage reinsurance; and transactional fraud monitoring;
- changes to the reduced input tax credit for trustee and responsible entity services;
- clarifying the language used in relation to guarantees and indemnities.
The changes are to have effect from 1 July 2012.
CGT trading stock exception for super funds: draft legislation
As part of the 2011-12 Budget, the Government announced that it would amend the trading stock exception to the CGT primary code rule for complying superannuation entities for certain specified assets (primarily shares, units in trusts and land).On 13 January 2012, the Government released draft legislation (and accompanying explanatory memorandum) to give effect to this measure. The intent is to ensure that gains and losses on those specified assets are subject to CGT, consistent with CGT being the primary code for taxing gains and losses of complying superannuation entities. Certain superannuation entities have previously sought to treat such assets, particularly shares, as trading stock so as to deduct losses on the assets against income other than capital gains.
The amendments are proposed to have effect from 10 May 2011.
Progress of legislation
As at 20.1.12 Bill Explanatory Memorandum Intro House Passed House Intro Senate Passed Senate Date of Royal assent / Act Number Description 22.6.11 17.8.11 18.8.11 13.10.11 3.11.11/129 Reform of Transport FBT; Children with Disabilities; DGRs; 30.9.10 22.11.10 23.11.10 23.8.11 . 8.9.11/93 Reform of Transport FBT; Children with Disabilities; DGRs; 13.9.11 Carbon Tax 22.9.11 TOFA, Ancillary Funds; Special Disability Funds; Income Tax Rates; Farm Management; Film Offsets 13.10.11 Primary Production Trust; PRRT; Company Directors 13.10.11 PAYG Withholding Non-Compliance Minerals Resource Rent Tax Bill 2011 (and Related Bills) 2.11.11 Minerals Resource Rent Tax Petroleum Resource Rent Tax Bill 2011 (and Related Bills) 2.11.11 Petroleum Resource Rent Tax Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Bill 2011 2.11.11 Small Business Deductions, Entrepreneurs Tax; Low income super Superannuation Guarantee (Administration) Amendment Bill 2011 2.11.11 Superannaution Guarantee Rate 23.11.11 CGT Provisions, GST, DGR list and Technical Corrections
Clean Energy Bill 2011 (and Related Bills)
12.10.11
12.10.11
8.11.11
18.11.11/131
13.10.11
31.10.11
21.11.11
29.11.11/147
21.11.11
22.11.11
23.11.11
.
PAYG Withholding Non-Compliance
.
.
.
.
22.11.11
.
.
.
22.11.11
.
.
.
22.11.11
.
.
.
22.11.11.
.
.
.
.
.
.
.