Greenwoods and Freehills Weekly Tax Highlights 23.11.07-30.11.07

ATO Documents

Released 28.11.07

Draft Taxation Ruling
TR 2007/D11: Income tax: debt/equity - identification of any 'effectively non-contingent obligation' of an issuer of a convertible note to provide 'financial benefits' for the purposes of Division 974 of the Income Tax Assessment Act 1997 if the note can be converted at any time at the issuer's discretion into shares that are equity interests in the issuer company
Class Rulings
CR 2007/109: Income tax: Stockland Corporation Limited Non-Executive Director Security Acquisition Plan
CR 2007/110: Income tax: scrip for scrip roll-over: acquisition of Bolnisi Gold NL by Coeur d'Alene Mines Corporation
Taxation Determination
TD 2007/29: Income tax: holding period rule: is an embedded share option a position in relation to the share if it is exercisable by or against a party other than the issuer of the share?
Draft Taxation Determination
TD 2007/D20: Income tax: where there is no excess debt under Division 820 of the Income Tax Assessment Act 1997 can the transfer pricing provisions apply to adjust the pricing of costs that may become debt deductions, for example, interest and guarantee fees?
Notices of Withdrawal
Product Ruling
PR 2007/56: Income tax: Barossa Vines Project 2007 - Applicant Group
PR 2007/57: Income tax: Olive Growers Australia Project 2007 - Applicant Group 2
Draft Taxation Determination
TD 2004/D76: Notice of Withdrawal Income tax: for the purposes of Division 974 of the Income Tax Assessment Act 1997, does an issuing company have an effectively non-contingent obligation to provide a financial benefit by way of periodic interest returns on an interest bearing convertible note from the time that it can be converted at the issuing company's option into ordinary shares in that company?

Released 16.11.07

Interpretative Decisions 
ATO ID 2007/215: Division 7A: mortgage over a Crown lease and no registration in accordance with State law
ATO ID 2007/216: Capital gains tax: Subdivision 124-G roll-over - requirements that must be met for interposed company to choose that the consolidated group continue in existence
ATO ID 2007/217: Employee share scheme: whether payments by an employer company to a trustee to acquire shares to be later provided to employees result in the company deriving assessable income
ATO ID 2007/218: Acquisition of shares from a trustee pursuant to rights acquired under an employee share scheme
ATO ID 2007/219: Deduction for increased amount of superannuation lump sum death benefit
Withdrawn Interpretative Decisions
ATO ID 2002/1048: Simplified Tax System (STS) accounting method - timing of deductions for fringe benefits tax (FBT) instalments
ATO ID 2003/38: Simplified Tax System (STS) - five year restriction on re-entry 
ATO ID 2003/90: Simplified Tax System (STS): Disposal of trading stock
ATO ID 2003/91: Income tax: Simplified Tax System (STS): trading stock rules - STS taxpayers that elect to treat trading stock as disposed of at a closing value, other than market value
ATO ID 2003/205: Simplified Tax System (STS): accounting method - timing of deductions for amounts paid by B-pay
ATO ID 2003/375: Simplified Tax System (STS): Short-term hire agreement
ATO ID 2003/389:  Simplified Tax System (STS) capital allowances - continuing STS pool deductions after a business ceases
ATO ID 2003/1005: Non Commercial Losses: other assets test - assets that have been pooled under the Simplified Tax System (STS)
ATO ID 2004/89: Simplified Tax System (STS): Capital Allowance - estimate of taxable purpose proportion of an asset - first year in STS 
ATO ID 2004/125: Simplified Tax System: depreciation of plant where partnership reconstituted
ATO ID 2004/208: Simplified Tax System (STS): sale of formerly leased asset and capital allowance deduction
ATO ID 2004/209: Simplified Tax System (STS): effective life of a depreciating asset
ATO ID 2004/476: Simplified Tax System: termination value of a depreciating asset upon the death of the owner, an STS taxpayer.
ATO ID 2004/481: Simplified Tax System: is a farm shed allocated to either a long life or general STS pool?
ATO ID 2004/507: Simplified Tax System (STS) and hire purchase payments
ATO ID 2004/508: Simplified Tax System (STS): accounting method - timing of deductions for the general interest charge 
ATO ID 2004/509: Simplified Tax System (STS): STS pools and legal personal representatives of a deceased STS taxpayer 
ATO ID 2004/646: Simplified Tax System (STS) - partner in partnership
ATO ID 2004/651: Simplified Tax System (STS): assets expected to be let predominantly on a depreciating asset lease
ATO ID 2004/710: Simplified Tax System (STS): accounting method - timing of deduction for discount expense on Commercial bills with a term of less than 12 months
ATO ID 2006/227: Entrepreneurs' tax offset and personal services income - partnership  
ATO ID 2006/228: Entrepreneurs' tax offset and personal services income - company