Greenwoods and Freehills Weekly Tax Highlights 14.9.07-21.9.07

21 September 2007

Print Version

ATO Documents

Released 19.9.07

Class Rulings
CR 2007/84: Income tax: early retirement scheme - Transport Accident Commission
CR 2007/85: Income tax: early retirement scheme - NSW Police Force
CR 2007/86: Fringe benefits tax: employer clients of Salary Options Pty Ltd who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 that make use of a Visa Debit Card facility established with a financial institution by Salary Options Pty Ltd
CR 2007/87: Income tax: treatment of payments received under the Lower Murray Darling Catchment Management Authority Rangelands Incentive Strategy - Conservation Reserves and Sustainable Grazing Schemes
Addendum
Miscellaneous Tax Ruling
MT 2024: Fringe benefits tax: dual cab vehicles eligibility for exemption where private use is limited to certain work-related travel
Notices of Withdrawal
Class Ruling
CR 2007/83: Income tax: scrip for scrip: acquisition of Symbion Health Limited by Healthscope Limited
Income Tax Ruling
IT 2636: Income tax: transfer of losses within a company group
Product Ruling
PR 2006/56: Income tax: 2006 Income tax: 2006 Timbercorp Olive Project - Post 30 June Growers

Released 21.9.07

Interpretative Decisions
ATO ID 2007/179: Employee Share Trust: sole activities test
ATO ID 2007/180: GST and 'supplies made through the enterprise' for the purposes of Division 135
ATO ID 2007/181: Division 15 of Part III of the Income Tax Assessment Act 1936: contract between a non-resident insurance company and a resident insurance company to make good a loss from a surety bond
ATO ID 2007/182: Individual Retirement Accounts and Foreign Investment Fund measures
Withdrawn Interpretative Decisions
ATO ID 2003/644: Capital gains tax: trust to company rollover - CGT event J4 - company.
ATO ID 2003/645: Capital Gains Tax: trust to company roll over - CGT event J4 - shareholder
ATO ID 2003/646: Capital gains tax: trust to company rollover - CGT event J4 - trustee
ATO ID 2003/647: Capital gains tax: trust to company rollover - trust ceasing to exist
ATO ID 2007/8: Local government councillors and salary sacrifice arrangements

Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2007

Released 20.9.07

The Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2007 and accompanying Explanatory Memorandum have been released. The Bill includes a new Div 230 which defines "financial arrangement" and sets out the various methods under which gains and losses from financial arrangements will be brought to account for tax purposes.
The Bill also establishes criteria that determine how different financial arrangements are assigned to the different tax-timing methods. The new legislation will effectively remove the capital/revenue distinction for most financial arrangements. Division 230 contains provisions which cover both the tax treatment of hedges and tax-timing treatments in respect of arrangements other than hedges.

Legislative Update

The Tax Laws Amendment (2007 Measures No 4) Bill 2007, Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No 1) 2007, and Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No 2) 2007 have passed all stages without amendment and await Royal Assent.
The Tax Laws Amendment (2007 Measures No 5) Bill 2007 has passed all stages with an amendment in the Senate with regard to the the film tax reform measures. The Bill now awaits Royal Assent.

Tax Cases

Brody and Ors and FCT, AAT Case [2007] AATA 1764: The AAT has confirmed the Commissioner's decision to disallow the objections of several taxpayers against amended assessments relating to their investment in various 'Budplan' tax effective investment schemes. The AAT dismissed the taxpayers' applications for the same reason that the Federal Court dismissed the matter in the original 'Budplan' test case, this being that as the relevant expenditure was directed to research and development activities, it was incurred too soon before the derivation of income or any commercial viability of the project.

Progress of Legislation

As at 21.9.07

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

3.9.07/136

Treaties with France and Norway

Tax Laws Amendment (2007 Measures No 4) Bill 2007

21.6.07

13.8.07

14.8.07

18.9.07
.

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

13.8.07

14.8.07

18.9.07
.

Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No 2) 2007

21.6.07

13.8.07

14.8.07

18.9.07
.

International Tax Agreements Amendment Bill (No 2) 2007

21.6.07

11.9.07

12.9.07

13.9.07
.

Treaty with Finland

Superannuation Legislation Amendment Bill 2007

21.6.07

13.9.07

.

Commonwealth Superannuation

Tax Laws Amendment (2007 Measures No 5) Bill 2007

16.8.07

12.9.07

13.9.07

19.9.07
.

Taxation treatment of leasing and similar arrangements, company loss recoupment rules, statutory licence CGT,- marriage breakdown roll-over, trusts and stapled securities, excluded equity interest, ADIs, R&D, Film incentives, deductible gift recipients

Tax Laws Amendment (2007 Measures No 6) Bill 2007

13.9.07

.

Carbon Sink Forests, Grants to Tobacco Growers, Deductible Gift Recipients.

Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2007

20.9.07

.

Carbon Sink Forests, Grants to Tobacco Growers, Deductible Gift Recipients.

These notes are in summary form designed to alert clients to tax developments of general interest. They are not comprehensive , they are not offered as advice and should not be used to formulate business or other fiscal decisions.

Liability limited by a scheme approved under Professional Standards Legislation.