Greenwoods and Freehills Weekly Tax Highlights 12.5.06 - 19.5.06

19 May 2006

Professor Malcolm Gammie QC

Greenwoods & Freehills are pleased to host Professor Malcolm Gammie QC, a leading tax practitioner from the UK, in conjunction with the University of Sydney Law School this week. Malcolm is noted as a leading practitioner in the commercial, European and international taxation fields, and will provide insight to G&F on international taxation developments, particularly the impact of recent European Court of Justice case law. If you would like to speak to Malcolm about any matters concerning international taxation developments please contact your Client Relationship director.

ATO Documents

Released 17.05.06
Taxation Determination TD 2006/37: 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 2006?

Class Rulings
CR 2006/40: Approved Early Retirement Scheme - Box Hill Institute of TAFE - Centre for Media, Design and Arts
CR 2006/41: Approved Early Retirement Scheme - Box Hill Institute of TAFE - Centre for Business Programs
CR 2006/42: treatment of payments received under the Securing our Fishing Future package: * Business Exit
Assistance - Fishing Concession Voluntary Surrender * Boat Scrapping Incentive * Business Advice Assistance

Product Rulings
PR 2006/78: Australian Bight Abalone Project 2006 -Retail Offer
PR 2006/85: National Viticultural Fund of Australia Project No.6 (October 2006 Growers)
PR 2006/86: National Viticultural Fund of Australia Project No.6 (May 2007 Growers)
PR 2006/87: Moora Citrus Project - 2006 Growers
PR 2006/88: Moora Citrus Project - 2007 Growers

Erratum
Goods and Services Tax Ruling
GSTR 2006/4: determining the extent of creditable purpose for claiming input tax credits and for making adjustments for changes in extent of creditable purpose

Notices Of Withdrawal
Income Tax Rulings
IT 135: tax avoidance: theatrical entertainers
IT 136: tax avoidance schemes: unit trusts
IT 2023: taxation (unpaid company tax) legislation sections 5(7) and 3(12)
IT 2046: Taxation (Unpaid Company Tax) Act 1982 Freedom ofInformation Act 1982 disclosure of information
IT 2059: trust stripping: pre-Part IVA assessing guidelines
IT 2082: additional tax in respect of overclaimed partnership losses - claim withdrawn before assessment
IT 2102: trust stripping: Post-Part IVA assessing guidelines
IT 2106: supplementary trust stripping settlement guidelines
IT 2126: trust stripping settlement guidelines
IT 2127: supplementary trust stripping settlement guidelines: subsection 226(1) penalty
IT 2143: taxation (unpaid company tax): trust estates ceasing to exist prior to assessment
IT 2311: remission of additional tax imposed by section 225 where Division 13 of the Income Tax Assessment Act or comparable double tax treaty provisions are applied
IT 2366: taxation (unpaid company tax): waiver of vendor recoupment tax where amount is less than $100
IT 2564: remission of additional tax imposed in tax avoidance cases under anti-avoidance provisions of Part IVA

Released 18.05.06 :
Interpretative Decisions
ATO ID 2006/127: Dual residency under the double tax agreement between Australia and New Zealand (the NewZealand Agreement)
ATO ID 2006/128: The application of the Business Profits Article in relation to the Interest Article in the double tax agreement between Australia and New Zealand (the New Zealand Agreement
ATO ID 2006/129: The application of the Business Profits Article in relation to the Dividend Article in the double tax agreement between Australia and New Zealand (the New Zealand Agreement)
ATO ID 2006/130: Consolidation: the exit history rule and time of acquisition of an asset
ATO ID 2006/131: Assessability of income eamed by an Australian resident discharging Australian governmental functions in the United States
ATO ID 2006/132: Superannuation retirement & employment termination: Eligible termination payments (ETP) - Journal entries insufficient to constitute payment of a death benefit ETP made under ETP provisions

New Zealand Budget

Released 18.05.06

This week the 2006 NZ Budget was handed down today by the NZ Finance Minister Michael Cullen. The budget contained few taxation measures as the New Zealand government is in the process of preparing a discussion document on the review of business taxation in New Zeland.

Tax Cases

Rangdon Pty Ltd v FCT [2006] FCA 546, 12 May 2006: The Federal Court held that the taxpayer had not provided sufficient evidence to show an assessment by the Commissioner of Taxation was excessive. The Commissioner was accordingly granted an order of discovery requiring the taxpayer to provide additional information. If that order were not complied with within 28 days, the taxpayer's case would be dismissed. The matter concerned a sum of $200,000 which was contributed to an employee benefit trust

AAT Case [2006] AATA 429, Ref No VT2003/184-185, 17 May 2006: The issue raised related to thedeductibility of superannuation contributions, which had earlier been considered by the Federal Court in Harris v FCT. The AAT refused to consider whether any question of law was involved as the Taxpayer could not disatinguish the facts from those already considered by the Federal Court.

Progress of Legislation

As at 24.03.06

Bill	Intro House	Passed House	Intro Senate	Passed Senate	Date of Royal assent / Act Number	Description
Superannuation Legislation Amendment Bill 2004	17.11.04	1.12.04	2.12.04	10.5.06		Commonwealth Superannuation Scheme (CSS), Public Sector Superannuation Scheme (PSS).
Superannuation Legislation Amendment (Superannuation Safety and Other Measures) Bill 2005	23.6.05	17.8.05	18.8.05			Commonwealth Superannuation Scheme (CSS), Public Sector Superannuation Scheme (PSS).
Tax Laws Amendment (2005 Measures No 6) Bill 2005	7.12.05	27.2.06	28.6.05	1.3.06	2.3.05/ Act No 13	Consolidation, Extension of mutuality principle, Medical expenses, Child care, Tax offset, Deductible gift recipients
Tax Laws Amendment (2006 Measures No 1) Bill 2006	16.02.06	28.3.06	28.3.06	28.306	6.4.06/ Act No 32	Tax Promoter Rules, Blackhole expenditure, Temporary Residents, GST Phone Products.
Tax Laws Amendment (2006 Measures No 2) Bill 2006	29.03.06					deductible Gift Recipients, Lump Sum Payments, CGT, Franking Tax Deficit
Tax Laws Amendment (2006 Measures No 1) Bill 2006	11.05.06					Income Tax Rates

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These notes are in summary form designed to alert clients to tax developments of general interest. They are not comprehensive , they are not offered as advice and should not be used to formulate business or other fiscal decisions.

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