Greenwoods and Freehills Weekly Tax Highlights - Week Ended 18.4.08

ATO Documents

Released 16.4.08

Self Managed Superannuation Fund Determination
SMSFD 2008/2: Self Managed Superannuation Funds: when calculating the market value ratio of in-house assets for the purposes of section 75 of the Superannuation Industry (Supervision) Act 1993 is it permissible for a self managed superannuation fund to value its assets at historical cost (purchase price)? 
Notices of Withdrawal
Income Tax Rulings
IT 24: Investment allowance - adjustments where leave granted to change accounting period
IT 2078: Division 10AAA - deduction for expenditure on public roads and railways
IT 2569: Extensions of time to pay under section 206 
Addenda
Goods and Services Tax Determination
GSTD 2006/3: Goods and services tax: are settlement adjustments taken into account to determine the consideration for the supply or acquisition of real property? 
Product Ruling
PR 2008/4: Income tax: TFS Sandalwood Project 2008 - pre 30 June 2008 Growers

Released 17.4.08

Law Administration Practice Statements
PS LA 2008/2 (GA): Non-treaty airlines
PS LA 2008/7: Application of the promoter penalty laws (Division 290 of Schedule 1 to the Taxation Administration Act 1953 ) to promotion of tax exploitation schemes
PS LA 2008/8: Application of the promoter penalty laws (Division 290 of Schedule 1 to the Taxation Administration Act 1953) to schemes involving product rulings

Released 18.4.08

Taxpayer Alert
TA 2008/7: Application of Part IVA of the Income Tax Assessment Act 1936 to 'wash sale' arrangements
New Interpretative Decisions
ATO ID 2008/57: Foreign tax credit: capital gain from the sale of asset situated in the USA by a dual resident of Australia and the USA
ATO ID 2008/58: Capital gains tax: CGT event C2 - unsecured note
ATO ID 2008/59: Employee share scheme: replacement rights received on company takeover
ATO ID 2008/60: Residual fringe benefit: tax-exempt body - recreation centre
Withdrawn Interpretative Decisions
ATO ID 2004/272: Medical Expense Tax Offset: expenses paid from a joint bank account
ATO ID 2004/382: Assessability of payments received by a US taxpayer under an exclusive licence agreement

Tax Cases

Hattrick and FCT AAT Case [2008] AATA 301, 11 April 2008: The taxpayer's failure to produce a business plan, or operate tours at market rate, before 2004, has led to the AAT denying tax deductions. The Commissioner had decided after objection that the taxpayer had been carrying on a business from 1 December 2004. The AAT agreed with the Commissioner that prior to this date the taxpayer had not been conducting business operations with regard to operating a catamaran chartering business. 

Chalmers and The Lynton Chalmers Superannuation Fund and FCT AAT Case [2008] AATA 308,  15 April 2008:  The AAT has found that the Commissioner correctly imposed a penalty on the taxpayers for making a statment that was false or misleading. The taxpayers had claimed an input tax credit without holding a valid invoice. The claim stemmed from the taxpayer's erroneous belief that the vendor of a unit would not apply the margin scheme to a sale. The taxpayers relied on a a private ruling issued by the Tax Office that if the margin scheme was not applied they would be entitled to an input tax credit.

As at 18.4.08

Bill	Intro House	Passed House	Intro Senate	Passed Senate	Date of Royal assent / Act Number	Description
Tax Laws Amendment (2008 Measures No 1) Bill 2008	13.2.08	21.2.08	11.3.08	.		Carbon Sink Forests, Grants to Tobacco Growers, Deductible Gift Recipients, Equine Workers Hardship Supplement, Gifts to political parties.
The Financial Sector Legislation Amendment (Review of Prudential Decisions) Bill 2008	11.3.08		13.2.08	11.3.08 .		Overhaul of rules for operation of financial sector entities.
Tax Laws Amendment (Personal Income Tax Reduction) Bill 2008	14.2.08	12.3.08	13.3.08	.		Personal Income Tax Cuts
Tax Laws Amendment (2008 Measures No 2) Bill 2008	20.3.08			.		CGT, Misappropriated amounts, Superannuation Guarantee, Deductible Gift Recipients