Greenwoods and Freehills Weekly Tax Highlights 28.9.07-5.10.07

Print Version

ATO Documents

Released 3.10.07

Class Rulings
CR 2007/91: Income tax: distribution of APA securities by Alinta Limited
CR 2007/92: Income tax: assessable income: treatment of payments received under the Western Catchment Management Authority Enterprise Based Conservation Program 
Product Rulings
PR 2007/85: Income tax: Brooklyn Park Organic Olive Groves Bonni-Foi Growers Project (2008 Growers)
Draft Goods and Services Tax Ruling
GSTR 2007/D2: Goods and services tax: development lease arrangements with government agencies
Notices of Withdrawal
Income Tax Ruling
IT 2303: Income tax: lump sum payment on termination of employment of an assistant marine steward
Product Ruling
PR 2006/153: Income tax: Harrington Brook Project 2007

Released 5.10.07

Interpretative Decisions
ATO ID 2007/183: Income Tax: Transfer and declarations of trust in the context of Division 16E of the Income Tax Assessment Act 1936 
ATO ID 2007/184: Non-portfolio dividend received by a taxpayer through its permanent establishment in Hong Kong 
ATO ID 2007/185: GST and adjustment events
ATO ID 2007/186: Exempt Income: net exempt income - child care benefit and family tax benefit
Withdrawn Interpretative Decision
ATO ID 2003/319: Medical expenses tax offset: payments for domestic services

Released 2.10.07

The Assistant Treasurer has announced changes that will exempt employers who make a late Superannuation Guarantee (SG) payment from paying the same amount twice. Employers are currently charged  the amount  of the late contribution as part of the SG charge and are still required to pay the amount into the fund, albeit late. Employees will still be entitled to interest to compensate them for the late payment.

Barham and FCT, AAT Case [2007] AATA 1824, 28 September 2007: The AAT has held that Pt IVA applied to a taxpayer's investments in the 1998 and 1999 income years. The AAT has found that a taxpayer had claimed deductions for investment in the Australian Aloe Vera Project  primarily for the purposes of obtaining a tax benefit. The Tribunal found that Pt IVA operated to disallow the deductions to the extent they exceeded the actual cash outlays of the taxpayer's investment.

BHP Billiton Direct Reduced Iron Pty Ltd & Anor v Duffus & Anor [2007] FCA 1528,  2 October 2007: The Federal Court has quashed a decision by the Tax Office to refuse a BHP Billiton company an extension of time to transfer a tax loss to another group company. The Court found that the ATO had erred in finding the company culpable of engaging in non-compliance activities. The Court found that the Group had acted reasonably and had repeatedly communicated to the ATO that the transfer loss would take place as soon as outstanding matters, relating to the tax position of both companies, were settled. The Court also found that the transaction had no adverse implications under the Part IVA provisions.

Progress of Legislation