Greenwoods and Freehills Weekly Tax Highlights - Week Ended 3.10.08

ATO Documents

Released 1.10.08

Draft Taxation Determination
TD 2008/D14: Income tax: does subsection 974-135(1) of the Income Tax Assessment Act 1997 only apply to a legally enforceable obligation?
Class Ruling
CR 2008/60: Income tax: assessable income: Australian Rules umpires: Hills Football League
Notice of Withdrawal
Product Ruling
PR 2007/88: Income tax: Ginseng Australia Project No. 1 (Late Growers)

Released 3.10.08

Interpretative Decision
ATO ID 2008/127: Exempt Benefits: work related items - primarily for use in the employee's employment
ATO ID 2008/128: Excise: Energy Grants (Cleaner Fuels) Scheme Act and fuel standards
ATO ID 2008/129: Excise: Fuel Tax Act and fuel standards
ATO ID 2008/130: Income tax treatment of securitisation of leases
ATO ID 2008/131: Energy Grants Credit Scheme: off-road credit - use of diesel fuel at a home for aged persons
ATO ID 2008/132: GST and pizza/Italian rolls
ATO ID 2008/133: Exempt Benefits: work related items - a portable electronic device 
ATO ID 2008/134: Transitional redundancy payments
ATO ID 2008/135: Foreign income tax offset: New Zealand National Provident Fund pension
Withdrawn Interpretative Decisions
ATO ID 2003/894: FBT- Exempt Benefits: mobile phones
ATO ID 2003/1091: Capital Allowances: first element of cost - paying an amount - issue of shares
ATO ID 2003/1092: Capital Allowances: first element of cost - provision of a non-cash benefit - issue of shares
ATO ID 2003/1093: Capital Allowances: first element of cost - incurring a liability to pay or provide - future share issue
ATO ID 2004/14: Exempt benefits: Personal Digital Assistants (PDA's) - handheld and palm sized organisers
ATO ID 2006/44: Exempt Benefits: work related item - notebook computer, laptop computer or similar portable computer 
ATO ID 2006/115: Excise: refusal to grant a licence on the basis that refusal is necessary to protect the revenue 
ATO ID 2006/236: Exempt benefits: work related items - laptop computer or similar portable computer - computer software 
ATO ID 2006/256: Energy Grants (Credits) Scheme: off-road credit - use of diesel fuel at a home for aged persons 
ATO ID 2006/264: Assessability of employment income received by a dual resident of Australia and Finland 
ATO ID 2007/102: Assessability of income derived by a resident of Finland from providing services in Australia as a contractor 

TOFA Exposure Draft Legislation

Introduced 1.10.08

Treasury has released an Exposure Draft Bill and related Explanatory Material dealing with Taxation of Financial Arrangements (TOFA) Stages 3 and 4. The TOFA exposure draft legislation has undergone a number of technical changes including the addition of integrity rules to address value shifting and non-arm’s length dealings in relation to financial arrangements. Greenwoods & Freehills will be issuing a Tax Brief on the latest TOFA releases in the near future.

Tax Cases

Taxpayer v Commissioner of Taxation, AATA 854, AAT, 24 September 2008: The AAT has dismissed an interlocutory application by the taxpayer. The taxpayer had argued that the Commissioner should be unable to have issued a new statement of facts and issues to be filed in the Tribunal as this would be prejudicial to the taxpayer's case. The Tribunal found that the taxpayer had ample notice of the Commissioner's intent to file the amended statement. The dispute in the matter related to contributions to an employee share scheme.

Metlife Insurance Ltd v FCT [2008] FCAFC 167, 3 October 2008: The Full Federal Court has unanimously allowed the taxpayer's appeal from the decision in Metlife Insurance Ltd v FCT. The Court found that the Commissioner's power to amend an assessment, more than four years after the initial assessment was issued, could only be exercised if a new fact had come to light. 

As at 3.10.08