Greenwoods & Freehills Weekly Tax Highlights - Week Ended 31.7.09

ATO Documents

Released 29.7.09

Final Class Ruling
CR 2009/38: Income tax: early retirement scheme - BlueScope Steel Limited and subsidiary companies

Notices
Addenda
Taxation Determination
TD 2005/34: Income tax: what are the results for income tax purposes of entering into a profit washing arrangement as described in Taxpayer Alert TA 2005/1?
Superannuation Guarantee Ruling
SGR 2009/1: Superannuation guarantee: meaning of the terms 'ordinary time earnings' and 'salary or wages'
Withdrawal 
Product Rulings
PR 2009/17: Income tax: KTC Mahogany Project 2009 

Released 31.7.09

New Interpretative Decisions
ATO ID 2009/75: Foreign Income Tax Offset: New Zealand government superannuation pension 
ATO ID 2009/76: Share capital tainting 31 July 2009
ATO ID 2009/77: Dividends: non-share dividends and interest - superannuation fund for foreign residents - withholding tax
ATO ID 2009/78: Non-assessable and Non-exempt Income - Dividends: non-share dividends and interest of a superannuation fund for foreign residents
ATO ID 2009/79: Dividends: non-share dividends and interest - foreign superannuation fund - withholding tax
ATO ID 2009/80: Immediate annuity as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997
ATO ID 2009/81: Capital Allowances: tax break - investment commitment time - depreciating asset subject to hire purchase agreement 
ATO ID 2009/82: Life Assurance Company: calculation of passive income - ceases to carry on life assurance business before the end of the statutory accounting period
ATO ID 2009/83: Capital Allowances: business related costs - undivided amount of capital expenditure - several discrete matters - dissection of amount
ATO ID 2009/84: Capital Allowances: business related costs - amount incurred indifferently - most relevant business
ATO ID 2009/85: Employee Share Scheme: rights to acquire shares at a future time authorised by shareholders
ATO ID 2009/86: Capital Gains Tax: trust split - appointing a new trustee - CGT event E1

Withdrawn Interpretative Decisions
ATO ID 2003/908: Foreign tax credit: New Zealand government superannuation pension
ATO ID 2006/164: Foreign Tax Credits resulting from a Mutual Agreement Procedure (MAP)
ATO ID 2006/192: Allocation of foreign tax credits
ATO ID 2007/162: Foreign Tax Credit: New Zealand tax incorrectly paid on pension income

Decision Impact Statement

Released 29.7.09

Virgin Holdings SA v Commissioner of Taxation; Undershaft (No. 1) Limited and Undershaft (No. 2) BV v Commissioner of Taxation: The Commissioner has accepted two recent decisions of the Federal Court at first instance that two Double Tax Agreements entered into prior to the CGT regime in Australia, denied the Commissioner the right to tax capital gains derived in Australia by foreign residents. The Commissioner did note that the ramifications of these decisions would be limited as Australia has renegotiated several Double Tax Agreements with major trading partners. 

Appeals Update
Virgin Holdings SA v FCT: The Commissioner has withdrawn the appeal to the Full Federal Court against the decision of Edmonds J. The Federal Court decision, which now stands, found that the Commissioner did not have the right to tax a capital gain made by a Swiss resident from sources in Australia, the relevant Double Tax Agreement having been entered into prior to the introduction of the CGT regime in Australia. 

Federal Parliament is currently in recess and will resume on Tuesday 11 August 2009.

As at 31.7.09