Greenwoods & Freehills Weekly Tax Highlights - Week Ended 17.7.09

ATO Documents

Released 15.7.09

Final Class Rulings
CR 2009/35: Income tax: proposed return of capital: Rattoon Holdings Limited
CR 2009/36: Income tax: capital gains tax: James Hardie Industries NV transformation and re-domicile
CR 2009/37: Income tax: off-market share buy-back, redemption and surrender of assets comprising the Macquarie Media Group stapled securities

Final Taxation Determination
TD 2009/17: Income tax: is interest on a loan fully deductible under section 8-1 of the Income Tax Assessment Act 1997 when the borrowed moneys are settled by the borrower on trust to benefit the borrower and others?

Draft Goods and Services Tax Ruling
GSTR 2009/D1: Goods and services tax: application of subsection 11-15(5) of the A New Tax System (Goods and Services Tax) Act 1999 to acquisitions relating to the provision of accounts by Australian authorised deposit taking institutions

Released 17.7.09

New Interpretative Decisions
ATO ID 2009/66: Energy Grants (Credits) Scheme: off-road - generation of electricity for use at particular premises
ATO ID 2009/67: Superannuation fund for foreign residents
ATO ID 2009/68: Capital Gains Tax: cost base modification of CGT asset acquired from exercise of put option
ATO ID 2009/69: Capital Allowances: tax break - investment commitment time - option to delay construction

Managed investment trusts: ASFA submission on capital account election
The Association of Superannuation Funds of Australia (ASFA) has released its submission to the Treasury’s discussion paper on the proposal to allow managed investment trusts to make an irrevocable election to treat gains and losses from the disposal of certain eligible investments on capital account for tax purposes. A copy of the submission is available on the ASFA website.

Tax Cases
FCT v Grimaldi (No 4) [2009] FCA 748 (9 July 2009). The Federal Court has refused the Commissioner’s oral application seeking to extend freezing orders against the assets of the relevant respondents.

Didasko Learning Resources Pty Ltd (in liq) & Anor v Didasko Learning Institute Pty Ltd & Ors [2009] VSC 252 (14 July 2009). The Supreme Court of Victoria has held that the purchasers of businesses that agreed to pay the “trading liabilities” of those businesses were liable to pay certain outstanding tax debts. The Court rejected an argument that the phrase “trading liabilities” should be confined to liabilities of a “trading” character, instead finding that it meant liabilities incurred in the course of business, including tax debts.

JNVQ and Commissioner of Taxation [2009] AATA 522 (14 July 2009). The AAT has upheld a non-compliance notice that the Commissioner issued to a self-managed superannuation fund under s.40 of the SIS Act due to a contravention of the in-house asset rules.

Progress of Legislation
The Taxation Administration Act 1953 – PAYG withholding – individuals engaged in foreign service was registered on the Federal Register of Legislative Instruments on 14 July 2009.

As at 17.7.09