Greenwoods and Freehills Weekly Tax Highlights - Week Ended 4.4.08

ATO Documents

Released 2.4.08

Taxation Determinations
TD 2008/7: Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2008?
Draft Self Managed Superannuation Fund Ruling
SMSFR 2008/D2: Self Managed Superannuation Funds: the application of subsection 66(1) of the Superannuation Industry (Supervision) Act 1993 to contributions of assets to a self managed superannuation fund by a related party of that fund
Addenda 
Goods and Services Tax Ruling
GSTR 2000/1: Goods and services tax: adjustment notes 
GSTR 2000/37: Goods and services tax: agency relationships and the application of the law 
Product Ruling
PR 2007/39: Income tax: Mort & Co No. 5 Project 
PR 2007/58: Income tax: Mort & Co No. 5 Project - 2008 
Errata
Class Ruling
CR 2008/19: Income tax: Qantas Deferred Share Plan - Non-Executive Director Share Plan 
CR 2008/22: Income tax: Qantas Deferred Share Plan - 2006 Retention Plan
Notices of Withdrawal
PR 2007/78: Income tax: Limestone Coast Vignettes Project - 2007 Development Vignette Owners (to 31 October 2007) 
PR 2007/78: Income tax: Limestone Coast Vignettes Project - 2007 Mature Vignette Owners (to 31 March 2008) 
Released 4.4.08

New Interpretative Decisions
ATO ID 2008/48: Product Stewardship for Oil Scheme: de-mineralisation
ATO ID 2008/49: GST and when consideration is provided where a debt is deferred
ATO ID 2008/50: Capital Allowances: depreciating asset - improvement to land - gully dam
ATO ID 2008/51: Self managed superannuation fund: Division 13.3A of SIS Regulations - interest in another entity - units in a unit trust 
ATO ID 2008/52: Self managed superannuation fund: Division 13.3A of SIS Regulations - interest in another entity - listed company shares
Taxpayer Alerts
TA 2008/5: Certain borrowings by self managed superannuation funds

The Assistant Treasurer has announced the signing of a new Protocol revising the tax treaty between Australia and the Republic of South Africa. Notable changes include a  new Article on dividends which specifies a withholding tax rate limit of 5% for all non-portfolio inter-corporate dividends and a 15% rate for all other dividends. The general limit for royalties will be reduced to 5%. The protocol also addresses Australia's "most favoured nation obligations" and introduces measures which provide for cross-border collection of tax debts.

Full Federal Court in Futuris Corporation Ltd v FCT: The High Court has heard the Commissioner's appeal but has reserved judgement. Transcripts of the hearing are available. The Court had found a Part IVA determination to be invalid due to the Commissioner's knowledge, at the time of issuing, that there had been a deliberate double counting of the gain.

Roche Products Pty Ltd and FCT,  AAT Case [2008] AATA 261, 2 April 2008:  The AAT has found that transfer pricing assessments issued by the Commissioner to Roche Australia for amounts paid to its parent company for products were excessive. The Tribunal has proceeded to substitute lower increases. Roche Australia conceded that the transactions were not at arm's length for payments involving its Pharmaceutical products division. However the Tribunal found on the evidence, that in dealings between the Diagnostic and Consumer divisions and the parent company, the transactions were at arm's length.