Greenwoods and Freehills Weekly Tax Highlights 9.12.05 - 16.12.05
Draft Bill: Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2006
Released 16.12.05
The government has released Draft Bill Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2006.The draft legislation contains rules that cover tax-timing treatments for financial arrangements, including tax-timing hedging rules that are designed to minimise tax-timing mismatches. Details about the treatment of synthetic financial arrangements, the commencement date and transitional issues, and interactions with the rest of the income tax law are being developed. For an in depth analysis of the material please refer to our Tax Brief.
For a copy of the Draft Bill click on the link:
http://tofa.treasury.gov.au/content/downloads/TOFA_Draft_Legislation.pdf
For a copy of the Draft Explanatory Memorandum please click on the link:
http://tofa.treasury.gov.au/content/downloads/TOFA_EM.pdf
To view Greenwoods and Freehills comprehensive Tax Brief please click on the link:
http://www.gf.com.au/articles_454.htm
Part IVA: the general anti-avoidance rule for income tax
Released 13.12.2005
The Tax Office has released an extensive guide entitled "Pt IVA: The general anti-avoidance rule for income tax". The guide outlines the basic principles of how and when Pt IVA applies to a scheme. In announcing its release, the Commissioner said that it provides practical guidance for deciding whether Pt IVA is likely to apply to a particular arrangement.
For a a copy of the Guide please click on the link:
http://www.ato.gov.au/content/downloads/n14331-12-2005_web.pdf
Legislative Update
The following bills have received Royal Assent: Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Bill 2005 - as Act No 147 of 2005 and Taxation Laws Amendment (Superannuation Contributions Splitting) Bill 2005 - as Act No 148 of 2005.
To view the current status of Taxation Legislation please view the Table at the end of this update.
ATO Rulings and Determinations
Released 14.12.05
Draft Taxation Determination TD 2005/D54: Income tax: consolidation: what is an excluded asset under subsection 705-35(2) of the Income Tax Assessment Act 1997 ?
http://law.ato.gov.au/atolaw/view.htm?docid=DXT/TD2005D54/NAT/ATO/00001
Class Ruling CR 2005/112: Income tax: tax treatment of payments to members of the Australian Construction Industry Redundancy Trust
http://law.ato.gov.au/atolaw/view.htm?docid=CLR/CR2005112/NAT/ATO/00001
Class Ruling CR 2005/113: Income tax: redundancy payments - Newmont Yandal Operations Pty Ltd - Employees of Wiluna Gold Mine
http://law.ato.gov.au/atolaw/view.htm?docid=CLR/CR2005113/NAT/ATO/00001
Goods and Services Tax Ruling GSTR 2005/6: Goods and services tax: the scope of subsection 38-190(3) and its application to supplies of things (other than goods or real property) made to non-residents that are GST-free under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999
http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR20056/NAT/ATO/00001
Product Ruling PR 2005/117: Income tax: Great Southern 2006 Organic Olives Income Project - 2006 Growers
http://law.ato.gov.au/atolaw/view.htm?docid=PRR/PR2005117/NAT/ATO/00001
Product Ruling PR 2005/118: Income tax: Great Southern 2007 Organic Olives Income Project - 2007 Growers
http://law.ato.gov.au/atolaw/view.htm?docid=PRR/PR2005117/NAT/ATO/00001
Taxation Ruling TR 2005/20: Income tax: the interaction of deemed ownership under Division 240 of the Income Tax Assessment Act 1997 with the 'holding' rules in Division 40
http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR200520/NAT/ATO/00001
Draft Miscellaneous Tax Ruling MT 2005/D1: The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number
http://law.ato.gov.au/atolaw/view.htm?docid=DXM/MT2005D1/NAT/ATO/00001
Notice of Withdrawal - Draft Miscellaneous Tax Ruling MT 2004/D3: The New Tax System: the meaning of entity carrying on an enterprise for the purposes of entitlement to an Australian Business Number
http://law.ato.gov.au/atolaw/view.htm?docid=DXM/MT2004D3W/NAT/ATO/00001
ATO Interpretative Decisions
Interpretative Decision ATO ID 2005/347: Capital gains tax: capital improvements - cost base used in determining whether improvement is a separate CGT asset
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005347/00001
Interpretative Decision ATO ID 2005/348: Exempt income: entity that is a trade union
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005348/00001
Interpretative Decision ATO ID 2005/349: Assessability of income derived by a New Zealand resident taxpayer from leasing a ship fully crewed and supplied for use in Australian fishing waters
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005349/00001
Interpretative Decision ATO ID 2005/350: Assessability of an education allowance received by an Australian resident from the Danish Government
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005350/00001
Interpretative Decision ATO ID 2005/351: Assessability of employment income received by an Australian resident working in Denmark http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005351/00001
Interpretative Decision ATO ID 2005/352: Assessability of income derived by a Japanese resident company from activities in Australia
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005352/00001
Interpretative Decision ATO ID 2005/353: GST and adjustment of input tax credit after legislative change for supply of retirement village accommodation
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2005353/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2001/110: GST: Body Corporate (Sinking Fund Levies)
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2001110/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2001/385: GST and maintenance/operating levy imposed by a timeshare resort management body http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2001385/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2001/394: GST, tax invoices and the margin scheme
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2001394/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2001/557: GST and input tax credits for an acquisition under a hire purchase agreement
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2001557/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2002/96: Establishment costs of a company and trading trust
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID200296/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2002/276: Primary Production - Purchase of a water entitlement - Deductibility under section 8-1
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2002276/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2002/297: GST and supply of a management rights business as a going concern
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2002297/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2002/671: GST and mechanical coin-operated devices http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2002671/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2002/707: Deduction - purchase of cray pot entitlement
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2002707/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2002/1058: GST and staff seconded to overseas parent entity
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2002707/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2004/180: GST and attribution of GST where a 'core deposit' forms part of the consideration
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2004180/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2004/184: GST and attribution of input tax credit to the tax period in which the payment provided is the return of a 'core deposit'
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2004184/00001
Notice of Withdrawal - Interpretative Decision ATO ID 2004/530: GST and ability to issue recipient created tax invoices after the sale of a business
http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2004530/00001
Progress of Legislation
|
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 Legislation Amendment (Superannuation Safety and Other Measures) Bill 2005 |
23.6.05 |
17.8.05 |
18.8.05 |
|
|
|
|
Tax Laws Amendment (2005 Measures No 4) Bill 2005 |
23.6.05 |
10.8.05 |
11.08.05 |
8.12.05 |
|
|
|
Tax Laws Amendment (2005 Measures No 5) Bill 2005 |
18.8.05 |
9.09.05 |
9.09.05 |
8.12.05 |
|
|
|
Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Bill 2005 |
14.09.05 |
12.10.05 |
12.10.05 |
7.12.05 |
14.12.05 |
147 of 2005 |
|
Taxation Laws Amendment (Superannuation Contributions Splitting) Bill 2005
|
12.10.05 |
10.11.05 |
28.11.05 |
8.12.05 |
14.12.05 |
148 of 2005 |
|
Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 2) 2005
|
10.11.05 |
5.12.05 |
7.12.05 |
8.12.05 |
|
|
|
Tax Laws Amendment (2005 Measures No 5) Bill 2005 |
7.12.05 |
|
|
|
|