Greenwoods & Freehills Weekly Tax Highlights 3.8.07 -10.8.07
ATO Documents
Released 8.8.07
Class Rulings
CR 2007/73: Income tax: early retirement scheme - Golden Casket Lottery Corporation Limited 8 August 2007
CR 2007/74: Income tax: capital gains: scrip for scrip roll-over: exchange of units in Investa Brisbane Commercial Trust, Investa Fourth Commercial Trust and Investa Sixth Commercial Trust for units in Investa Diversified Office Fund
CR 2007/75: Income tax: CDS Technologies Limited - return of capital to shareholders 8 August 2007
CR 2007/76: Income tax: early retirement scheme - Charles Sturt University
Product Ruling
PR 2007/74: Income tax: 2007 Macgrove Project (Late Growers)
Addenda
Product Rulings
PR 2007/35: Income tax: McLeod's Daughters 2007 Investment 8 August 2007
PR 2007/49: Income tax: Primary Yield Tomato Project - Pre 30 June 2007
Released 10.8.07
Interpretative Decisions
ATO ID 2007/161: Assessability of income from employment aboard a ship or aircraft operated by an Australian resident in international traffic - UK employee and employer
ATO ID 2007/162: Foreign Tax Credit: New Zealand tax incorrectly paid on pension income
ATO ID 2007/163: Transitional termination payments
ATO ID 2007/164: Capital Gains Tax: rollover relief - compulsory acquisition - easement created
ATO ID 2007/165: Consolidation: MEC group - appointment of a replacement provisional head company - MEC group reduced to a single eligible tier-1 company
Legislative Update
Released 3.8.07The International Tax Agreements Amendment Bill (No 1) 2007 passed the House of Representatives on Tuesday 7.8.2007 without amendment. The Bill subsequently was passed by the Senate without amendment on 9.8.2007.
Tax Cases
Leggett & Ors and FCT, [2007] AATA 1624, 1 August 2007: The AAT has determined that initial outlay of $30000 paid by each participant were outgoings of capital rather than being incurred for the purpose of generating income. According to the Tribunal the franchisees were not conducting a business but were rather passive investors hoping to gain a commercial return.
TSC 2000 Pty Ltd and FCT, [2007] AATA 1629, , 3 August 2007: The AAT has held that services provided by a lottery syndicate operator amounted to gambling supplies. The Tribunal rejected the taxpayers argument that it was acting as an agent but has determined the actions were reckless as opposed to being an intentional disregard of the relevant restrictions and thus reduced the penalty levied by the Commissioner.
DCT v Dick [2007] NSWCA 190, 3 August 2007: The NSW Court of Appeal has overturned a District Court decision to relieve a company director of personal tax liability arising from the failure of the company to remit PAYG deductions. The Court of Appeal ruled that the director penalty regime in the Tax legislation was it's own code and therefore overruled the Company Law provisions.
Progress of Legislation
As at 10.8.07
|
Bill |
Intro House |
Passed House |
Intro Senate |
Passed Senate |
Date of Royal assent / Act Number |
Description |
|
International Tax Agreements Amendment Bill (No 1) 2007 |
29.3.07 |
7.8.07 |
8.8.07 |
9.8.07 |
|
Treaties with France and Norway |
|
Tax Laws Amendment (2007 Measures No 4) Bill 2007 |
21.6.07 |
|
|
|
|
Foreign tax credit quarantining rules , Trustee beneficiary reporting, Family trust elections, Investment in instalment warrants by super funds, Simpler super, Deductible Gift recipients |
|
Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No 1) 2007 |
21.6.07 |
|
|
|
|
|
|
Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No 2) 2007 |
21.6.07 |
|
|
|
|
|
|
International Tax Agreements Amendment Bill (No 2) 2007 |
21.6.07 |
|
|
|
|
Treaty with Finland |
|
Superannuation Legislation Amendment Bill 2007 |
21.6.07 |
|
|
|
|
Commonwealth Superannuation |