Greenwoods & Freehills Weekly Tax Highlights 31.8.07-7.9.07

Print Version

ATO Documents

Released 5.9.07

Product Ruling
PR 2007/76: Income tax: Palandri Global Supply Challenge 2007-2008 (2008 Growers)
PR 2007/77: Income tax: NTT Mahogany 2006-2008 (2008 Growers)
Draft Self Managed Superannuation Funds Ruling
SMSFR 2007/D1: Superannuation: the application of the sole purpose test in section 62 of the Superannuation Industry (Supervision) Act 1993 to the provision of benefits other than retirement, employment termination or death benefits
Draft Self Managed Superannuation Funds Determination
SMSFD 2007/D1:  Superannuation: when is a dividend or trust distribution 'received' before the end of 30 June 2009 for the purposes of paragraph 71D(d) of the Superannuation Industry (Supervision) Act 1993?
Notices of Withdrawal
Product Rulings
PR 2007/47: Income tax: Mediterranean Olives Project 2007 (Joint Venture Growers)
PR 2007/61: Income tax: Capricorn Timber Indian Sandalwood Project 2007

Released 7.9.07

Interpretative Decisions
ATO ID 2007/173: Employee Share Options: foreign tax credit relief to an Australian resident taxpayer where an employee share option benefit is taxed by the United States
ATO ID 2007/174: Employee Share Options: taxing rights on gain from sale of shares by an Australian resident taxpayer where the options to purchase those shares were granted to the taxpayer when they were working in the United States of America
ATO ID 2007/175: Capital Gains Tax: granting a long-term lease - whether the original lease term includes the term of any renewal of the lease
ATO ID 2007/176: Assessability of foreign source employment income derived by a member of the Australian Defence Forces
ATO ID 2007/177: Obtaining of treaty benefits under US Convention
ATO ID 2007/178: Assessability of dividends under Article 10(3) of the US Convention - determination made under Article 16(5) of the US Convention

Decision Impact statement: FCT v Indooroopilly

Released 3.9.07

The Tax Office has  released a Decision Impact Statement on the Full Federal Court decision in FCT v Indooroopilly Children Services Pty Ltd. The Case concerned the meaning of a "fringe benefit" and the Court ruled against the Commissioner.  The ATO will be reviewing FBT assessments affected by the decision of the Full Court in. The Tax Office says the decision has now been applied to the affected cases.

Wilson and FCT, AAT Case [2007] AATA 1721, 31 August 2007: The AAT has refused to reinstate the taxpayer's application for review of a decision by the Commissioner.  The Taxpayer had failed to appear at the previously scheduled review at which the application was dismissed.  to disallow the taxpayer's objection against an assessment. The Commissioner had applied Pt IVA of the ITAA 1936 to disallow a deduction for a contribution on the taxpayer's behalf to an employee share scheme.  The AAT decided that, due to the taxpayer's "long and continuing course of non-compliance" with AAT directions the application had not been dismissed in error.

Kerr and FCT, AAT Case [2007] AATA 1732, 5 September 2007:  The AAT has found that the Commissioner had no obligation to exercise special discretion in applying an RBL determination. The taxpayer had relied on advice from a financial planner that more than 50% of his various benefits were in the form of a complying pension. The Commissioner found that in actuality the total complying pension proportion was 48.5%.