Greenwoods and Freehills Weekly Tax Highlights 13.05.2005 - 20.05.2005
Debate is due to resume on several tax bills when the House of Representatives resumes on 23.5.05. The schedule of debate is as follows:
Tuesday 24.5.05: Tax Laws Amendment (Personal Income Tax Reduction) Bill 2005, Superannuation Bill 2005, Superannuation (Consequential Amendments) Bill 2005
Wednesday 25.5.05: Tax Laws Amendment (2005 Measures No 3) Bill 2005
Thursday 26.05.05: Tax Laws Amendment (2005 Measures No 2) Bill 2005
For a copy of the Rulings please click on the links provided:
Taxation Determination TD 2005/16: Income tax: does paragraph 251L(1)(b) of the Income Tax Assessment Act 1936 prevent persons other than registered tax agents from giving advice about a taxation law for a fee?
Taxation Determination TD 2005/17: Income tax: consolidation: life insurance: do sections 705-75 and 705-80 of the Income Tax Assessment Act 1997 apply to a policy liability that has been valued under section 713-520 for the purposes of working out step 2 of the allocable cost amount, for a joining entity that is a life insurance company?
Taxation Determination TD 2005/18: Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986 what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2005?
Taxation Determination TD 2005/19: Income tax: consolidation: does the phrase 'could be recognised in the joining entity's statement of financial position' in subsection 705-90(2) of Income Tax Assessment Act 1997 refer to the application of accounting policies consistent with the established accounting framework in preparing an entity's notional statement of financial position as at the joining time? http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD200519/NAT/ATO/00001
Class Ruling CR 2005/33: Income tax: capital gains tax: variation of share rights: Singleton Equity Housing Limited http://law.ato.gov.au/atolaw/view.htm?docid=CLR/CR200533/NAT/ATO/00001
Class Ruling CR 2005/34: Income tax: Approved Early Retirement Scheme - Department of Justice - Corrections Victoria http://law.ato.gov.au/atolaw/view.htm?docid=CLR/CR200534/NAT/ATO/00001
Class Ruling CR 2005/35: Income tax: Approved Early Retirement Scheme - The South Australian Forestry Corporation (ForestrySA) http://law.ato.gov.au/atolaw/view.htm?docid=CLR/CR200535/NAT/ATO/00001
Class Ruling CR 2005/36: Income tax: Agere Systems Inc. 2001 Employee Stock Purchase Plan
Class Ruling CR 2005/37: Income tax: trust restructure and transfer of assets - Estate of the Late George Adams/Tattersall's Limited http://law.ato.gov.au/atolaw/view.htm?docid=CLR/CR200537/NAT/ATO/00001
Product Ruling PR 2005/77: Income tax: Film Investment - 'Armoured X'
Notice of Withdrawal TR 1999/3: Income tax: the value for depreciation purposes for a subsequent purchase of a car subject to the section 42-80 luxury car limit
Queensland Holding and Trading Co Ltd & Anor V FCT  FCS 418: The Commissioner of Taxation has appealed the decision by Conti, J in the Federal Court to the Full Bench of the Federal Court after two corporate taxpayers were allowed to obtain a statement of reason s for a decision not to remit shortfall penalty tax.
Platypus Leasing Inc v Commissioner of Taxation (No 3)  NSWSC 388 (17 May 2005)
The Supreme court of NSW has found that certain companies seeking declatory relief from the Commissioner of Taxation would have to use the normal process as set down by the Taxation Administration Act 1953. The companies involved sought to have the commissioner issue declarations relieving them of liability to GST and entitlement to input credits. The issue concerned several cross-border transactions involving leased Virgin Blue aircraft.
For a copy of the case please click on the link:
Exposure draft regulations for superannuation death benefits – refining the meaning of interdependency relationship
A number of draft regulations have been released setting out the conditions for an interdependent relationship. The Government has expanded the definition of dependant for the purposes of the payment and taxation of superannuation death benefits. An interpendency relationship consists of two people who reside together, one or each of the individuals supports the other financially, and one or each of the individuals provides domestic and personal care. The definition of interdependency realtionship also extends to individuals in a close personal relationship who are unable to meet all of the above criteria by reason of disability.
For a copy of the regulations please click on the link:
New Zealand Budget
The New Zealand budget has been handed down and contains a number of taxation measures. Personal income tax thresholds will be indexed for inflation every three years with this measure coming into operation in the 2008 income tax year. Any shortfall will be made up by the introduction of a carbon tax from 2007.
Other Measures designed to increase the efficiency of the New Zealand economy include: The introduction of provisions which will no longer require NZ based collective investment vehicles to be taxed as entities; a temporary tax exemption of five years for foreign income for foreigners or formerly non-resident New Zealanders working in New Zealand; new tax deductions for Research and Development, and increased depreciation rates for short life assets.
To access the New Zealand Budget Papers please click on the link:
Interpretative DecisionsFor a copy of the Decisions please click on the links provided:
Interpretative Decision ATO ID 2005/141: Choice of superannuation fund - members of defined benefit funds http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005141/00001
Interpretative Decision ATO ID 2005/142: Energy Grants (Credits) Scheme: off-road credit - pumping of water carried out by statutory authority
Interpretative Decision ATO ID 2005/144: Assessable income: personal services income attributed to a non-resident under Part 2-42 of the ITAA 1997 - no double tax agreement applies
Interpretative Decision ATO ID 2005/117: Assessability of income derived on or after 1 July 2004 by a company resident of Australia and of the United Kingdom
Interpretative Decision ATO ID 2005/118: Assessability of income derived before 1 July 2004 by a company resident of Australia and of the United Kingdom
Interpretative Decision ATO ID 2005/119: Assessability of income derived in New Zealand by a resident taxpayer http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005119/00001
Interpretative Decision ATO ID 2005/120: Choice of superannuation fund: contributions made 'under' a State award http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005120/00001
Interpretative Decision ATO ID 2005/121: GST and supply of meals to clients in an in-house dining facility http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005121/00001
Interpretative Decision ATO ID 2005/122: GST and entitlement to input tax credits for acquisitions made to supply meals to clients in an in-house dining facility
Interpretative Decision ATO ID 2005/123: Assessability of salary and wages received by a Singapore national whilst undergoing training in Australia
Interpretative Decision ATO ID 2005/124: Assessability of fellowship income received by a Singapore national whilst undergoing training in Australia
Interpretative Decision ATO ID 2005/125: Assessability of Australian sourced interest income derived by a resident of Singapore and of Australia
Interpretative Decision ATO ID 2005/126: Assessability of employment income received by Australian Defence Force member serving in the Kingdom of Tonga (Tonga) with the Australian Defence Cooperation Program
Interpretative Decision ATO ID 2005/127: Assessability of employment income received by Australian Defence Force member serving in the Federated States of Micronesia with the Pacific Patrol Boat project
Interpretative Decision ATO ID 2005/128: Deduction: payments for margin calls by an option trader
Interpretative Decision ATO ID 2005/129: Assessability of a research grant from the Danish Government received by a resident for services performed in Australia
Interpretative Decision ATO ID 2005/130: Assessability of employment income received from Singapore under an employer international assignment program
Interpretative Decision ATO ID 2005/131: Assessability of employment income received by Australian Defence Member (ADF) serving in Egypt with Operation PALADIN as part of Australia's contribution to the United Nations Truce Supervision Organisation (UNTSO) http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005131/00001
Interpretative Decision ATO ID 2005/132: Permanent Establishment of a Canadian resident entity with an employee in Australia http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005132/00001Interpretative Decision ATO ID 2005/133: Assessability of employment income received by an Australian Government employee working in Papua New Guinea
Interpretative Decision ATO ID 2005/134: Capital Gains Tax: demerger - cost bases of ownership interests http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005134/00001
Interpretative Decision ATO ID 2005/135: Petroleum Resource Rent Tax: losses incurred under forward contracts - year ended 30 June 2004
Interpretative Decision ATO ID 2005/136: Petroleum Resource Rent Tax: gains derived under forward contracts - year ended 30 June 2004 http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005136/00001
Interpretative Decision ATO ID 2005/137: Petroleum Resource Rent Tax: deductibility of selling expenses - put option premiums http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005137/00001
Interpretative Decision ATO ID 2005/138: Assessability of dividend income from a private company in Germany received by an Australian resident
Interpretative Decision ATO ID 2005/139: Diesel Fuel Rebate Scheme - Marine Transport - Self-elevating platforms http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005139/00001
Interpretative Decision ATO ID 2005/140: Diesel Fuel Rebate Scheme - Marine Transport - Dredging
Progress of legislation before parliament - 2005
(as at 20.05.05)
Bill Intro House Passed House Intro Senate Passed Senate Royal assent Act No Superannuation Legislation Amendment Bill 2004 17.11.04 1.12.04 2.12.04 Superannuation Supervisory Levy Imposition Amendment Bill 2005 (Previous citation: Superannuation Supervisory Levy Imposition Amendment 2004) 9.12.04 8.2.05 9.2.05 9.2.05 Tax Laws Amendment (2005 Measures No. 1) 2004 10.2.05 16.2.05 7.3.05 New International Tax Arrangements (Foreign-owned Branches and Other Measures) Bill 2005 17.3.05 Shortfall Interest Charge (Imposition) Bill 2005 17.3.05 Tax Laws Amendment (Improvements to Self Assessment) Bill (No 1) 2005 17.3.05 11.5.05 Tax Laws Amendment (2005 Measures No 2) Bill 2005 17.3.05 Superannuation Bill 2005 12.5.05 Superannuation Bill (Consequential Amendments) Bill 2005 12.5.05 Tax Laws Amendment (Personal Income Tax Reduction) Bill 2005 12.5.05 Tax Laws Amendment (2005 Measures No 3) Bill 2005 12.5.05
Superannuation Legislation Amendment Bill 2004
Superannuation Supervisory Levy Imposition Amendment Bill 2005
(Previous citation: Superannuation Supervisory Levy Imposition Amendment 2004)
Tax Laws Amendment (2005 Measures No. 1) 2004
New International Tax Arrangements (Foreign-owned Branches and Other Measures) Bill 2005
Shortfall Interest Charge (Imposition) Bill 2005
Tax Laws Amendment (Improvements to Self Assessment) Bill (No 1) 2005
Tax Laws Amendment (2005 Measures No 2) Bill 2005
Superannuation Bill 2005
Superannuation Bill (Consequential Amendments) Bill 2005
Tax Laws Amendment (Personal Income Tax Reduction) Bill 2005
Tax Laws Amendment (2005 Measures No 3) Bill 2005