Greenwoods and Freehills Weekly Tax Highlights 30.11.07-7.12.07

Print Version

ATO Documents

Released 28.11.07

Draft Fuel Tax Ruling
FTR 2007/D2: Fuel tax: vehicle's travel on a public road that is incidental to the vehicle's main use and the road user charge
Class Rulings
CR 2007/111: Income tax: capital gains tax: acquisition of Publishing and Broadcasting Limited by Crown Limited and demerger of Publishing and Broadcasting Limited by Crown Limited
CR 2007/112: Income tax and fringe benefits tax: IOOF Holdings Limited - Equity Participation Program
CR 2007/113: Income tax: merger between the Mulgrave Central Mill Company Limited and TQ Sugar Limited
CR 2007/114: Income tax: scrip for scrip: acquisition of Coles Group Limited by Wesfarmers Limited
Product Rulings
PR 2007/96: Income tax: Rewards Group Berry Project 2008 - Early Growers
PR 2007/97: Income tax: Gunns Plantations Woodlot Project 2008 - Planting Option 1
PR 2007/98: Income tax: Gunns Plantations Woodlot Project 2008 - Planting Option 2
PR 2007/99: Income tax: Gunns Plantations Woodlot Project 2008 - Planting Option 3
Notices of Withdrawal
Product Ruling
Superannuation Guarantee Determination
SGD 93/11: Are a professional sportsperson's appearance fees, prize monies or player awards either 'ordinary time earnings' or 'salary or wages'?
Taxation Determination
TD 92/100: Explanation of Taxation Determination system
Addenda
Class Rulings
CR 2007/16: Fringe benefits tax: employer clients of PBI Benefit Solutions Pty Ltd who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 whose employees make use of an Employee Benefits Card (Meal Entertainment) facility
CR 2007/17: Fringe benefits tax: employer clients of PBI Benefit Solutions Pty Ltd who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 whose employees make use of an Employee Benefits Card (Everyday Purchases) facility.

Appeals Update 

Marijancevic v Mann [2007] FCA 1648: The taxpayer has appealed to the Full Federal Court. The case involved the validity of default assessments and garnishee action by the Commissioner.

Tax Cases

Bluebottle UK Ltd & Ors v DCT & Anor [2007] HCA 54, 5 December 2007: The High Court has unanimously dismissed the taxpayers' appeal. The NSW Court of Appeal had  held that Virgin Blue was obliged to withhold an amount of over $84m in relation to the tax liability of 2 non-resident shareholders to dividends declared in their favour. This was despite the shareholders later assigning their right to the dividends to another party. The High Court held that Virgin Blue was obliged to retain from the dividends, otherwise due to be paid to the 2 non-resident shareholders, a sufficient amount to pay the tax due under each assessment issued by the Commissioner. In addition, the High Court said that Virgin Blue was personally liable for the tax due to the extent it should have retained funds, but would be indemnified for payments it made pursuant to the notice.

Carter and FCT, AAT Case [2007] AATA 2012, 3 December 2007: The Tribunal has determined that the underlying reason for an investment in a tea tree oil investment scheme was for the purpose of obtaining a tax benefit and was therefore subject to the anti-avoidance provisions in Part IVA. The Tribunal drew attention to the disparity between the amount invested and the deductions claimed by the taxpayers.

IRG Technical Services Pty Ltd & Anor v DCT [2007] FCA 1867, 5 December 2007: The Federal Court has dismissed the appeals of 2 taxpayer entities against the Commissioner's refusal to grant them Personal Service Business Determinations for engineering work. The Court found that income had been generated by the taxpayers in a manner which was employee-like as opposed to 'producing a result'. The Court therefore found that the work performed was not the result of a personal services business.