Greenwoods and Freehills Weekly Tax Highlights - Week Ended 14.11.08

ATO Documents

Released 12.11.08

Class Rulings
CR 2008/73: Fringe benefits tax: Fernwood Corporate Health Counselling program
CR 2008/74: Income tax: demerger of Buru Energy Ltd by ARC Energy Ltd and merger of ARC Energy Ltd with Australian Worldwide Exploration Ltd
CR 2008/75: Income tax: conversion by Australian Co-operative Foods Limited to a company registered under the Corporations Act 2001 and subsequent payment of special dividend pursuant to Scheme of Arrangement
CR 2008/76: Income tax: scrip for scrip: exchange of pSivida Ltd shares, options or warrants for equivalent New pSivida Inc securities
Miscellaneous Tax Rulings
MT 2008/1: Penalty relating to statements: meaning of reasonable care, recklessness and intentional disregard
MT 2008/2: Shortfall penalties: administrative penalty for taking a position that is not reasonably arguable
MT 2008/3: Shortfall penalties: voluntary disclosures
Addenda
Class Ruling 
CR 2007/29A: Income tax: capital gains - roll-over relief - acquisition of land for Traveston Crossing and Wyaralong Dams
Goods and Services Tax Ruling 
GSTR 2001/4A: Goods and services tax: GST consequences of court orders and out-of-court settlements
Taxation Ruling 
TR 2001/14A5: Income tax: Division 35 - non-commercial business losses
Law Administration Practice Statements
PS LA 2008/16: The GST implications in the recovery of legal costs (professional fees and disbursements) awarded by courts or settled by agreement between the parties

Released 10.11.08

Interpretative Decisions
ATO ID 2008/144: GST and chocolate beverage drinking preparation
ATO ID 2008/145: Periodic compensation payments received by a non-resident individual and the Pension Article of the UK Convention
ATO ID 2008/146: Capital allowances: business related costs - capital expenditure incurred - non-contractual customer relationships
ATO ID 2008/147: Capital gains tax: vendor cancellation of contract - compensation payment - preserving ownership rights
Withdrawn Interpretative Decisions
ATO ID 2001/126: Taxation of compensation paid to non-residents

Released 14.11.08

Interpretative Decision
ATO ID 2008/148: Energy Grants (Credits) Scheme: off-road credit - diesel fuel purchased for use (and used) in the construction of a car park and civil works on hospital grounds
Withdrawn Interpretative Decisions
ATO ID 2002/177: Deductibility of loss on rental property located in a foreign country
ATO ID 2002/764: Interest Expenses - Rental Property Located in a Foreign Country
ATO ID 2003/291: Foreign Tax Credit: tax imposed by Zimbabwe on pension income 
ATO ID 2003/618: Foreign Tax Credit: Foreign tax paid on salary and wages of an Australian resident employed in foreign consulate located in Australia

Tax Agent Services Bill 2008 and Explanatory Memorandum has been introduced into Parliament.  The Bill introduces a new legislative regime for tax agents. The major changes initiated by the Bill include the establishment of a national Tax Practitioners Board, registration and regulation of entities providing Business Activity Statement services, a legislated Code of Professional Conduct and civil penalties and injunctions to replace criminal penalties for certain forms of misconduct. 

Tax Laws Amendment (Education Refund) Bill 2008 passed the House of Representatives on the 11.11.08 without amendment and now moves to the Senate.