Greenwoods and Freehills Weekly Tax Highlights 29.2.08 - 7.3.08

ATO Documents

Released 5.3.08

Class Ruling
CR 2008/15: Income tax: scrip for scrip: exchange of shares in Home Building Society Ltd for shares in Bank of Queensland Ltd
CR 2008/16: Income tax: amendments to Sensible Saver Life Assurance Policy issued by Zurich Australia Limited
CR 2008/17: Income tax: return of capital: Multiplex Acumen Vale Syndicate Limited
CR 2008/18: Income tax: proposed Equity Return: MYOB Limited
CR 2008/19: Income tax: Qantas Deferred Share Plan - Non-Executive Director Share Plan
CR 2008/20: Income tax: Qantas Deferred Share Plan - 2006 Performance Rights Plan
CR 2008/21: Income tax: Qantas Deferred Share Plan - 2006 Performance Share Plan
CR 2008/22: Income tax: Qantas Deferred Share Plan - 2006 Retention Plan
Goods and Services Tax Ruling
GSTR 2008/1: Goods and services tax: when do you acquire anything or import goods solely or partly for a creditable purpose?
Product Ruling
PR 2008/20: Income tax: Agriwealth 2008 Softwood Project
PR 2008/21: Income tax: Barossa Vines Project 2007 - Applicant Group 2 5 March 2008
PR 2008/22: Income tax: Barossa Vines Project 2007 - Applicant Group 2 (using finance from Barossa Vines Limited)
Addendum
Goods and Services Tax Ruling
GSTR 2002/2: Goods and services tax: GST treatment of financial supplies and related supplies and acquisitions
Income Tax Ruling
IT 2466: Income tax: trust distributions of group interest to non-resident beneficiaries: determination of objections

Released 7.3.08

Interpretative Decision
ATO ID 2008/39: Acquisition of debt ledgers
ATO ID 2008/40: Deductions: capital allowances - correction of cost

Released 3.3.08

The Government has established an expanded National Rental Affordability Scheme. The Scheme will fund tax incentives for investors to build up to 100,000 (double the 50,000 formerly proposed) new affordable rental properties. Under the Scheme, the Commonwealth will provide private investors with tax credits of $6,000 a year for 10 years for new properties that are rented at 20% below the prevailing market level. The PM said the States and Territories have agreed to provide $2,000 per home either through cash payments or in kind, such as via the provision of cut price land or concessions on stamp duty.

Federal Parliament proposes to resume debate on Tax Laws Amendment (Personal Income Tax Reduction) Bill 2008. The Bill is planned for debate on 13 March 2008.

Stephens and FCT, AAT Case [2008] AATA 176, 29 February 2008: The AAT has found that the sale of a premises of a legal practice did not attract the CGT small business concession as it did not qualify as an active asset of the trust involved in the claim. This was despite the premises being used by one of the directors of the corporate trustee of the trust. The AAT found the legal practice did not meet the requirements of the concession which were that that the legal practice "acted, or could be reasonably expected to act, in accordance with the direction or wishes or concert with" the family trust in relation to carrying on its business.

Progress of Legislation