Greenwoods and Freehills Weekly Tax Highlights - Week Ended 27.2.09

ATO Documents

Released 25.2.09

Class Rulings
CR 2009/6: Income tax: early retirement scheme - Australian Catholic University
CR 2009/7: Income tax: return of capital: Babcock and Brown Capital Limited
Product Rulings
PR 2009/1: Income tax: FEA Plantations Project 2008 Late Grower - Option 1 Woodlot
PR 2009/2: Income tax: FEA Plantations Project 2008 Late Grower - Option 2 Woodlot
PR 2009/3: Income tax: FEA Plantations Project 2008 Late Grower - Option 3 Woodlot
PR 2009/4: Income tax: FEA Plantations Project 2008 Late Grower - Option 4 Unit

Released 27.2.09

Interpretative Decision
ATO ID 2009/11: GST and entitlement offer to new shares

Decision Impact Statement

Released 25.2.09

Hornsby Shire Council v Commissioner of Taxation: The Tax Office has accepted the decision of the Administrative Appeals Tribunal (AAT) and has stated that it will not lodge an appeal. The taxpayer compulsorily acquired land after the land owner exercised a statutory right to force the taxpayer to do so. The AAT had concluded that the taxpayer was entitled to an input tax credit on the purchase. 

Virgin Holdings SA v FCT [2008] FCA 1503: The Commissioner has discontinued the appeal to the Full Federal Court. The Federal Court found that the double taxation agreement (DTA) between Australia and Switzerland precluded Australian capital gains tax (CGT) from being levied on the Swiss resident. In doing so, the Court rejected the Commissioner's argument that the DTA was a pre-CGT treaty and therefore did not cover CGT.

Hurricane Formwork Pty Ltd (in liq) & Anor v FCT & Anor [2009] FCA 133, 20 February 2009: The Federal Court has held that, under the Corporations Act 2001, payments made by a company were voidable as the company was insolvent at the time of the payments. The company made the payments prior to the Deputy Commissioner of Taxation filing an application for the winding up of the company on the grounds of insolvency.  The Court ordered the Commissioner to repay the company an amount equal to the voidable payments.

Investa Properties Ltd and FCT [2009] AATA 121, AAT, 25 February 2009: This case involves an application to the AAT to review the Commissioner's objection regarding the correctness of a private ruling. The AAT has ruled that it does not have the jurisdiction to make findings on matters which were not considered in the ruling. 

Law Institute of Victoria Limited v Deputy Commissioner of Taxation [2009] VSC 55, 26 February 2009: The Supreme Court of Victoria was unable to decide whether the "public interest immunity" doctrine was available to the Law Institute of Victoria to prevent it from having to disclose information to the Commissioner under section 264(1) of the Income Tax Assessment Act 1936. The Court listed the matter for rehearing. 

Legislative Update

Tax Laws Amendment (2008 Measures No. 6) Bill 2009 was passed by the House of Representatives on the 25.2.2009. The Bill passed with several Government amendments which provide assistance to individuals and communities affected by the Victorian bushfires and North Queensland floods.

The Senate Standing Committee on Economics has recommended that the Tax Laws Amendment (Taxation of Financial Arrangements) Bill 2008 be passed through Parliament.