Greenwoods & Freehills Weekly Tax Highlights 17.8.07-24.8.07

Print Version

ATO Documents

Released 22.8.07

Taxation Determination
TD 2007/25: Income tax: can section 160ZZZJ of Part IIIB of the Income Tax Assessment Act 1936 apply to interest entered in the accounting records of an Australian branch of a foreign bank if the interest relates to a borrowing the branch has obtained from a third party? 
TD 2007/26: Income tax: can a share in a company be a convertible interest by satisfying item 4 of the table in subsection 974-75(1) of the Income Tax Assessment Act 1997 ?
Class Rulings
CR 2007/79: Income tax: return of capital: Ramelius Resources Limited 
Product Ruling
PR 2007/75: Income tax: Gunns Plantations Limited Winegrape Project 2007 - Late Growers 
Draft Taxation Ruling
TR 2007/D8: Income tax: application of the transferor trust and controlled foreign company measures where property or services are transferred to a non-resident company owned by a non-resident trustee 
TR 2007/D9:  Income tax: various income tax issues relating to the horse industry; including whether racing, training and breeding activities (carried out as stand-alone activities or in combination) amount to the carrying on of a business 
Addenda
Taxation Determination
TD 97/23: Income tax: what is the approved form of an election under subsection 139E(1) of the Income Tax Assessment Act 1936 ('the Act') so that it applies to all shares or rights acquired in an income year under a qualifying employee share acquisition scheme? 
Miscellaneous Tax Ruling
MT 2024: Fringe benefits tax: dual cab vehicles eligibility for exemption where private use is limited to certain work-related travel
Goods and Services Tax Determination
GSTD 2000/9: Goods and Services Tax: if you let out a residence do you need to get an ABN for PAYG purposes or register for GST?
Goods and Services Tax Rulings
GSTR 2000/17: Goods and services tax: tax invoices
GSTR 2000/28: Goods and services tax: attributing GST payable or an input tax credit arising from a sale of land under a standard land contract 
Notices of Withdrawal
Product Ruling
PR 2006/2: Income tax: 2006 Timbercorp Almond Project - Post 30 June Growers
PR 2006/117: Income tax: Heathcote Ridge Vineyard Project (October 2006 Growers)
Taxation Ruling
TR 93/26: Partial Withdrawal Income tax: issues relating to the horse industry

Released 24.8.07

Interpretative Decisions
ATO ID 2007/166: Assessability of trust distributions to non-resident beneficiaries
ATO ID 2007/167: Commercial Debt Forgiveness: whether a debt used to acquire a subordinated note can be a non-recourse debt 
ATO ID 2007/168: Commercial Debt Forgiveness: whether the interim use of bridging finance precludes a debt from being non-recourse
ATO ID 2007/169: GST and the supply of services for the construction of plant on an oil rig in the Joint Petroleum Development Area
ATO ID 2007/170: Investment Product: reasonable to expect - holder of depreciating assets
ATO ID 2007/171: Investment Product: subleases property to another entity - right to immediately possess depreciating assets
ATO ID 2007/172: Withholding Tax: dividends paid in respect of redeemable preference shares - rate of withholding tax determined under the United States Convention
Withdrawn Interpretative Decsions
ATO ID 2001/588: GST and margin scheme for sale of property originally purchased after 30 June 2000 under the margin scheme
ATO ID 2001/633: GST and calculation of margin scheme to include money paid to develop the land
ATO ID 2002/31: GST, legal fees and the margin scheme
ATO ID 2002/351: Retirement income entities: Margin Lending - charge over assets of a Self Managed Superannuation Fund
ATO ID 2002/352: Retirement income entities: Margin Lending - borrowing by a Self Managed Superannuation Fund
ATO ID 2002/490: GST, administration costs and the margin scheme
ATO ID 2002/1073: Medicare Levy Surcharge - Family Surcharge Threshold - Eligible Termination Payment included in taxable income
ATO ID 2003/1089: GST and services provided in the Joint Petroleum Development Area
ATO ID 2004/369: Medicare levy: family income - post June 83 component of ETP received by taxpayer's spouse
ATO ID 2004/726: GST and choosing to apply the margin scheme on a supply of a fractional interest in land

Review into Unlimited Amendment Periods 

Released 22.8.2007  

The Assistant Treasurer has announced  a review into unlimited amendment periods in the income tax laws. A discussion paper is available from the treasury website which examines the removal of unlimited amendment periods. The Assistant Treasurer  said the review will attempt to determine a balance between protecting taxpayers from the risk of amended assessments and  replacing them with more certain arrangements.

Tax Cases

Cameron Brae Pty Limited v FCT [2007] FCAFC 135, 21 August 2007:  By a 2:1 majority, the Full Federal Court has found against the taxpayer. The Court held that no deduction was available to the taxpayer for the contribution of some $500,000 to a superannuation fund. A company incorporated in New Zealand was the trustee of the fund. The fund was governed by a trust deed that allowed benefits to be paid to discretionary members at the trustee's discretion. The court found that the payment was merely an augmentation of existing funds and did not directly benefit an existing employee or member.