Greenwoods and Freehills Weekly Tax Highlights 19.5.06 - 26.5.06

ATO Documents

Released 24.05.06

Taxation Determinations
TD 2006/34: will the Commissioner exercise his discretion under subsection 27H(3) of the Income Tax Assessment Act 1936 in determining the deductible amount in relation to a superannuation pension or 'eligible annuity' split pursuant to an agreement or court order on marriage breakdown?
TD 2006/35: is a non-member spouse who is under 55 years of age entitled to a rebate under section 159SM or section 159SU of the Income Tax Assessment Act 1936 when a superannuation pension or 'eligible annuity' is split pursuant to an agreement or court order on marriage breakdown on a specified percentage basis?
TD 2006/36: consolidation: can the profit received on the disposal of membership interests in a subsidiary member of a consolidated group be income according to ordinary concepts?

Draft Taxation Determination
TD 2006/D18:  Income tax: consolidation: is a deferred tax liability recognised and measured in accordance with AASB 1020 (AAS 3) 'Income Taxes' (the 1999 standard) an accounting liability under subsection 705 70(1) where the 1999 standard was not adopted for the recognition and measurement of the liability for financial reporting purposes for the period within which the joining time occurred?

Class Rulings
CR 2006/43: Approved Early Retirement Scheme - Wallenius Wilhelmsen Logistics 
CR 2006/44: Approved Early Retirement Scheme - Nissan Motor Co (Australia) Pty Ltd 
CR 2006/45: Promina Group Limited - proposed 2006 return of capital 

Product Rulings
PR 2006/89: Kiri Park Project 2005/2006 - 1 July 2006 to 30 September 2006 Growers 
PR 2006/90: Mort Feedlot Services Project - Early Producers 
PR 2006/91: Mort Feedlot Services Project - Late Producers 
PR 2006/92: Great Southern 2006 Beef Cattle Project 
PR 2006/93: Great Southern 2007 Beef Cattle Project 
PR 2006/94: Rewards Group Sandalwood Project 5 - 2006 Growers 
PR 2006/95: Heathcote Ridge Vineyard Project (May 2006 Growers) 
PR 2006/96: Barossa Vines Project 2006 - Applicant Group 2 
PR 2006/97: Primary Yield Tomato Project - Pre 30 June 2006 

Draft Taxation Ruling
TR 2006/D8: the treatment of shipping and aircraft leasing profits of United States and United Kingdom enterprises under the deemed substantial equipment permanent establishment provision of the respective Taxation Conventions  

Notices of Withdrawal
Income Tax Ruling
IT 121: section 26AAA - property transactions arising from liquidation
IT 122: section 26AAA - disposal of property under matrimonial settlement
IT 182: section 26AAA - sale of lease and attached goodwill
IT 183: section 26AAA - sale of matrimonial home within 12 months of death of spouse
IT 184: section 26AAA - allocation of shares resulting from amalgamation of companies
IT 185: section 26AAA - sale of rights or sale of shares allotted on taking up of rights
IT 2022: section 26AAA(5)(c) sale of family residence within 12 months of purchase as a result of a change in the place of business or employment of either the husband or the wife
IT 2027: superannuation: section 23F: payment of benefits in specie
IT 2037: superannuation: life insurance cover on members of superannuation funds
IT 2188: examination of section 23F superannuation fund trust deeds
IT 2189: superannuation: section 23FB and paragraph 23(ja) - payment of benefits in specie
IT 2225: pledging of assets by the trustees of superannuation funds
IT 2267: payments to superannuation funds and insurance policies from unappropriated profits of companies
IT 2335: premature release of benefits from a section 23FB or paragraph 23(ja) superannuation fund
IT 2351: examination of superannuation trust deeds 
Product Ruling
PR 2005/22: Rewards Group Sandalwood Project 5 - 2006 Growers
Erratum
PR 2006/23:  Barossa Vines Project - Applicant Group 1
Addendum
PR 2006/70: Income tax: 2006 Cherry Project

New Interpretative Decisions
ATO ID 2006/134: Deduction for personal superannuation contributions - 'eligible person' in relation to a year of income 
ATO ID 2006/135: Research and development: consolidated group - deductibility for head company - expenditure incurred by subsidiary as a corporate trustee 
ATO ID 2006/136: Research and development: consolidated group - effect of single entity rule - R & D activities of subsidiary deemed to be carried out on behalf of head company 
ATO ID 2006/137: Research and development: consolidated group - R & D activities of subsidiary member deemed to be carried out on behalf of head company - not on behalf of another person  
ATO ID 2006/138: Research and development: consolidated group - R & D activities of two subsidiary members - only one registered  
ATO ID 2006/139: Capital gains tax (CGT): Deceased estate transfers private company shares to beneficiary 
ATO ID 2006/140: Assessability of contract income earned by a resident taxpayer from an organisation based in Indonesia 

Withdrawn Interpretative Decisions
ATO ID 2002/1008: Division 40: later year balancing adjustment relief for taxpayers other than small business taxpayers 
ATO ID 2002/1009: Division 40: later year balancing adjustment relief for small business taxpayers
ATO ID 2003/765: Capital Allowances: cost to find a depreciating asset - first element of cost 
ATO ID 2004/74: Capital Allowances: cost - first element - initial motor vehicle registration, insurance and brokerage 

The Government has also released Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2006 which will increase the Medicare levy low-income thresholds for individuals and families in line with increases in the CPI