Greenwoods and Freehills Weekly Tax Highlights 21.9.07-28.9.07

Print Version

ATO Documents

Released 26.9.07

Class Ruling
CR 2007/88: Fringe benefits tax: employer clients of Shakespeare & Associates who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 whose employees make use of a Visa Salary Packaging Card (Meal Entertainment) facility 
CR 2007/89: Income tax: early retirement scheme - ACL Bearing Company
CR 2007/90: Income tax: proposed return of capital: Austar United Communications Limited 
Product Ruling
PR 2007/82: Income tax: BioForest Sustainable Timber and Biofuel Project 2007 (2008 Growers)  
PR 2007/83: Income tax: Arafura Pearl Project 2008  26 September 2007
PR 2007/84: Income tax: tax consequences of borrowing in relation to the Momentum Investor Funding Product (Post 30 June 2007) 
Goods and Services Tax Determination
GSTD 2007/1: Goods and services tax: is a credit card provider entitled to a reduced input tax credit under item 27 of the table in subregulation 70-5.02(2) of the A New Tax System (Goods and Services Tax) Regulations 1999 for the acquisition of services from a co-branding partner where it pays commission for those services? 
Draft Goods and Services Tax Determination
GSTD 2007/D2: Goods and services tax: if a non-resident individual owns residential rental property in Australia and an Australian accountant makes a supply to that individual that consists of advice about that property and tax return preparation services, is that supply wholly or partly GST-free if made on or after 1 April 2005? 
GSTD 2007/D3: Goods and services tax: what are the results for GST purposes of a charitable institution engaging with an associated endorsed charitable institution in an arrangement described in Taxpayer Alert TA 2007/1? 
Draft Taxation Determination
TD 2007/D14: Income tax: can section 23AJ of the Income Tax Assessment Act 1936 apply to a dividend when it is paid by a company (not being a Part X Australian resident) to an Australian resident company which receives it in its capacity as a partner in a partnership? 
TD 2007/D15: Income tax: can section 23AJ of the Income Tax Assessment Act 1936 apply to a dividend paid by a company (not being a Part X Australian resident) to the trustee of a trust, which then pays it to an Australian resident company beneficiary?
Draft Self Managed Superannuation Fund Ruling
SMSFR 2007/D2: Superannuation: giving financial assistance using the resources of a self managed superannuation fund to a member or relative of a member that is prohibited for the purposes of paragraph 65(1)(b) of the Superannuation Industry (Supervision) Act 1993 

Notices of Withdrawal
IT 2577: Income tax: Japan Exchange and Teaching Program

The following Bills have all now received Royal Assent

Tax Laws Amendment (2007 Measures No 4) Bill 2007 - Act No 143 of 2007;
Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No 1) 2007 - Act No 144 of 2007;
Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No 2) 2007 - Act No 145 of 2007;
International Tax Agreements Amendment Bill (No 2) 2007 - Act No 146 of 2007;
Tax Laws Amendment (2007 Measures No 5) Bill 2007 - Act No 164 of 2007;
Superannuation Legislation Amendment Bill 2007 - Act No 165 of 2007.

Price Street Professional Centre Pty Ltd v FCT [2007] FCAFC 154, 25 September 2007: The Full Federal Court has found that the taxpayer had purchased land as a capital asset and that the loss on its sale was therefore not deductible. The Court agreed with the previous decision by the AAT that the taxpayer had incorrectly treated the sale of land as the sale of a revenue asset or trading stock for the purposes of claiming a $755,000 deductible loss. It also upheld the imposition of 75% shortfall penalties for reckless disregard of the law.

Pyke and FCT, AAT Case [2007] AATA 1784,  21 September 2007: The AAT has upheld a superannuation guarantee charge (SGC) assessment against the taxpayer. The Tribunal found that although the relevant contributions were eventually paid it was outside the discretionary authority of the Commissioner of Taxation to waive the SGC.