Greenwoods & Freehills Weekly Tax Highlights 23.6.06 - 30.6.06

New appointments

We are pleased to announce the following senior appointments within our team. The appointments acknowledge the exceptional talent and depth of expertise within Greenwoods & Freehills. To read more, please click on each individual.  

Chris Colley, Director, Sydney

Toby Eggleston, Director, Melbourne

Andrew Hirst, Senior Associate, Sydney

Rosalind Myint, Senior Associate, Sydney

Matthew Shanahan, Senior Associate, Sydney

Released 31.05.06

Superannuation Guarantee Determination
SGD 2006/2: Superannuation guarantee: can an entity that is an employer of an individual for superannuation guarantee purposes only because of subsection 12(3) or 12(8) of the Superannuation Guarantee (Administration) Act 1992 enter into an effective 'salary' sacrifice arrangement with the individual such that the contributions to a complying superannuation fund or retirement savings account made under the arrangement in lieu of 'salary' for the individual are employer contributions? 
Taxation Determination
TD 2006/43: Income tax: what are the reasonable travel and meal allowance expense amounts for 2006-2007? 
Class Ruling
CR 2006/59: Income tax: Shell Group Restructure - Employee Share Scheme - Share Entitlements 
CR 2006/60: Income tax: scrip for scrip roll-over: acquisition of Patrick Corporation Limited by Toll Holdings Limited 
CR 2006/61: Income tax: proposed capital reduction: Singapore Telecommunications Limited 
CR 2006/62: Income tax: Approved Early Retirement Scheme - Corporate Administration Agency
Product Rulings
PR 2006/112: Income tax: Australian Cricket Bat Willow Project - Product Disclosure Statement 2006 (2006 Growers) 
PR 2006/113: Income tax: TFS Sandalwood Project 2006 - Pre 30 June Growers (using Arrow Funding or who defer fees and use Arwon Finance) 
PR 2006/114: Income tax: TFS Sandalwood Project 2006 (Post 30 June Growers) 
Taxation Ruling
TR 2006/4: Income tax: capital gains: meaning of the words 'the beneficiaries and terms of both trusts are the same' in paragraphs 104-55(5)(b) and 104-60(5)(b) of the Income Tax Assessment Act 1997   
Notices of Withdrawal
CR 2006/5:  Income tax: capital gains: demerger of AGL Energy Limited by the Australian Gas Light Company
PR 2006/37: Income tax: Premium Plantations Combined Hardwood Project 2006 (pre 1 July 2006 Growers)
PR 2006/38: Income tax: Premium Plantations Combined Hardwood Project 2006 (1 July 2006 to 30 September 2006 Growers)
PR 2006/39: Income tax: Premium Plantations Hardwood Sawlog Project 2006 (pre 1 July 2006 Growers)
PR 2006/40: Income tax: Premium Plantations Hardwood Sawlog Project 2006 (1 July 2006 to 30 September 2006 Growers)
Addenda
PR 2003/25: Income tax: TFS Sandalwood Project 2003
PR 2003/29: Income tax: TFS Gold Card Sandalwood Project 2003
PR 2003/41: Income tax: West Coast Hardwood - Resale Offer
PR 2003/7: Income tax: Sylvatech Tropical Timbers 2003
PR 2003/23:  Income tax: Guilderton Olives Stage 2
PR 2004/27: Income tax: TFS Gold Card Sandalwood Project 2003 (Supplementary Information Memorandum)
PR 2004/31: Income tax: Great Southern Vineyards 2004 Project
PR 2004/63: Income tax: National Viticultural Fund of Australia Project No. 3
PR 2004/65: Income tax: Rosedale Vines Project No. 3 Stage 2
PR 2004/75: Income tax: New World 2020 Project
PR 2004/47: Income tax: Palandri America Wine Business - 2004
PR 2005/116: Income tax: TFS Sandalwood Project 2006 (Pre 30 June Growers)

Released 30.6.06

Interpretative Decisions
ATO ID 2006/159: Residual fringe benefit: funeral expenses of deceased employee 
Withdrawn Interpretative Decisions
ATO ID 2002/889: Capital gains tax -share value shifting

Commissioner's Speech

Released 26.06.06

The Commissioner of  Taxation has released a speech on small business compliance. The speech was entitled"Making tax less taxing for small business" and talked about the Tax Office's approach to small business compliance and what measures the Tax Office has taken to ease the compliance burden upon small companies.

Tax Cases

Markit Pty Ltd and Ors v FCT, Supreme Court of Queensland,  23 June 2006: The taxpayer has been unsuccessful in in bringing an action against the Commissioner under s 52 of the Trade Practices Act 1974 (the TPA) for "misleading or deceptive conduct" in the course of negotiations.  

Re McCutcheon and FCT,  [2006] AATA 535AAT, 22 June 2006: The Administrative Appeals Tribunal has determined that Part IVA applies to an arrangement to pay sale proceeds tax free to taxpayers.

Progress of Legislation

As at 30.06.06

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	29.05.06/Act No 48	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	25.5.2006	13.06.05	15.06.06	22.06.06/ Act No 58	Deductible Gift Recipients, Lump Sum Payments, CGT, Franking Tax Deficit
Tax Laws Amendment (Personal Tax Reduction and Improved Depreciation Arrangements) Bill 2006	11.05.06	31.05.06	13.06.05	15.06.06	19.06.06/ Act No 55	Income Tax Rates
Tax Laws Amendment (2006 Measures No 3) Bill 2006	25.05.06	14.06.06	15.06.06	22.06.06		Adjustments for Cyclone Larry, Drought Tax Offset, Capital Account Tainting, CGT exemption for Work Choices grants,  Medicare Levy Surcharge Offset
New Business Tax System (Untainting Tax) Bill 2006	25.05.06	14.06.06	15.06.06	22.6.06		Imposition of Untainting Tax
Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2006	25.05.06	14.06.06	15.06.06	22.06.06	22.06.06/Act No.59	Medicare Low Income Thresholds.
Tax Laws Amendment (2006 Measures No 3) Bill 2006	22.06.06					CGT rollover relief for marriage breakdown, Interaction of consolidation and demerger rules, Simplified imputation: New Zealand Companies, CGT Treatment of Foreign Residents.

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