Greenwoods and Freehills Weekly Tax Highlights - Week Ended 4.7.08

ATO Documents

Released 2.7.08

Taxation Determinations
TD 2008/18: Income tax: what are the reasonable travel and overtime meal allowance expense amounts for 2008-2009?
TD 2008/19: Income tax: what is the benchmark interest rate applicable for the year of income that commenced on 1 July 2008 for the purposes of Division 7A of Part III of the Income Tax Assessment Act 1936 and how is it used?
Class Ruling
CR 2008/46: Income tax: early retirement scheme - Central Northern Adelaide Health Service Incorporated 
Addenda
Goods and Services Tax Rulings
GSTR 2003/9: Goods and services tax: financial acquisitions threshold 
GSTR 2004/1: Goods and services tax: reduced credit acquisitions 
GSTR 2005/6: Goods and services tax: the scope of subsection 38-190(3) and its application to supplies of things (other than goods or real property) made to non-residents that are GST-free under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 
Notice of Withdrawal
Product Ruling
PR 2008/16: Income tax: Alpine Meadows Olive & Walnut Project No. 1 

Released 4.7.08

New Interpretative Decisions
ATO ID 2008/96: Consolidation: capital gains tax - tax cost setting amount - cost base and reduced cost base - incidental costs - business capital expenditure- paragraph 40-880(5)(f)
ATO ID 2008/97: Excess concessional contributions tax: notional taxed contributions - exercise of a discretion under Part 4 of Schedule 1A to the ITAR 1997
ATO ID 2008/98: Excess contributions tax: notional taxed contributions - superannuation salary increases
ATO ID 2008/99: Foreign Investment Fund exemption and foreign hybrid
ATO ID 2008/100: Crystallised segment of a superannuation interest
ATO ID 2008/101: GST and reverse charge on cross border leases
ATO ID 2008/102: GST and reverse charge on cross border operating lease 
ATO ID 2008/103: Capital gains tax: marriage breakdown roll-over - transfer to legal personal representative
ATO ID 2008/104: Excise: whether the Duboisia hopwoodii plant, is a tobacco plant
ATO ID 2008/105: Excise: meaning of tobacco
Withdrawn Interpretative Decisions
ATO ID 2001/2: Superannuation: Undeducted Purchase Price (Italy) 
ATO ID 2001/235: Superannuation: Undeducted Purchase Price (UPP) - Pension purchased by a roll-over of an ETP that is a commutation of an earlier pension which commenced to be payable prior to 1 July 1994 
ATO ID 2001/311: Superannuation: Undeducted Purchase Price (Netherlands)
ATO ID 2002/144: Superannuation, retirement & employment termination: Eligible termination payments and Bona fide redundancy 
ATO ID 2002/147: Superannuation, retirement & employment termination: Eligible termination payments and bona fide redundancy payments 
ATO ID 2002/419: Superannuation, retirement and termination of employment: Unused Undeducted Purchase Price (UUPP) at time pension commuted to a lump sum 
ATO ID 2002/452: Superannuation retirement and employment termination: Undeducted Purchase Price, Deductible amount, Invalidity component 
ATO ID 2002/466: Deductibility of meal expenses incurred as part of a course of education
ATO ID 2002/469: Low income tax offset - whether refundable
ATO ID 2002/471: Deductibility of prior year loss when taxpayer was a non resident in the loss year
ATO ID 2002/483: Loss from isolated sale of property
ATO ID 2002/485: Subscription to Pay TV Channel
ATO ID 2002/512: Deductibility of prior year loss when taxpayer was a non resident in the loss year
ATO ID 2002/547: Deductibility of cost of meals and incidentals while overseas - substantiation requirements
ATO ID 2002/571: Deductibility of overtime meal expenses - meal allowance folded-in as part of ordinary wages
ATO ID 2002/722: Undeducted purchase price: Commissioner's discretion
ATO ID 2002/821: Assessability of allowance for expenses paid to participants in market research sessions
ATO ID 2002/936: Pensioner tax offset - taxpayer in receipt of foreign pension
ATO ID 2002/949: Baby bonus - using a notional taxable income amount for the base year
ATO ID 2002/954: Racing Steward - deductibility of expenses incurred in maintaining a horse
ATO ID 2003/51: GST and provision of a loan by a pawnbroker
ATO ID 2003/79: Deductibility of child support payments
ATO ID 2003/1125: Determination of the net income or loss of a partnership and partnership 'salaries'
ATO ID 2003/1126: Assessable income : drawings of partnership 'salary' to a partner

Legislative Update

Tax Laws Amendment (Budget Measures) Bill 2008 has received Royal Assent becoming Act No 59 of 2008. The Act contains amendments to implement various 2008-09 Federal Budget announcements.

For an up to date guide to the status of Tax Bills please see the table at the end of this document.

Bonnell v DCT (No 5) [2008] FCA 991, Federal Court, Graham J, 30 June 2008: The Federal Court has dismissed a taxpayer's application for judicial review of the Commissioner's decision not to exercise his discretion to remit penalty tax.  In dismissing the application, the Court found that the taxpayer's application involved an "abuse of process".  The Taxpayer had sought to challenge the assessment that imposed the penalty tax by claiming that the Commissioner's improper exercise of the discretion had "tainted" and invalidated the whole assessment, and not just the penalty component.