Greenwoods & Freehills Weekly Tax Highlights - Week Ended 14.8.09

ATO Documents

Released 12.8.09

Final Class Rulings
CR 2009/41: Income tax: scrip for scrip: merger of MyState Financial Credit Union of Tasmania Limited and Tasmanian Perpetual Trustees Limited
Self Managed Superannuation Funds Product Ruling
SMSFPR 2009/1: The self managed superannuation funds product ruling system 
 
Notices
Draft Addendum
GSTR 2002/5: Goods and services tax: when is a 'supply of a going concern' GST-free?

Practice Statement:
PS LA 2009/5 Provision of advice and guidance by the Tax Office in relation to the application of the Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Regulations 1994 to Self Managed Superannuation Funds.

Released 13.8.09

Practice Statement
PS LA 2009/6: Quality improvement and assurance: application of and conformance with the Integrated Quality Framework.

Released 14.8.09

Interpretative Decisions
ATO ID 2009/88: Capital Gains Tax: temporary residents - temporary resident acting in a trustee capacity
ATO ID 2009/89: Capital Allowances: tax break- sale and leaseback - used for the principal purpose of carrying on a business 

Withdrawn Interpretative Decisions
ATO ID 2002/434: Retirement income entities: Definition of standard employer-sponsor
ATO ID 2002/548: Foreign Tax Credits - taxes imposed on French rental property
ATO ID 2002/549: Deductibility of French taxes on rental property 
ATO ID 2006/335: Self managed superannuation funds: in-house assets - contractual funding arrangement with related party

Exposure Draft - Taxation of Employee Share Schemes

Released 14.8.09

The Federal Government has released an Exposure Draft and various related materials for consultation on the Taxation of Employee Share Schemes, relating to the Government's announced reforms to employee share schemes. Under the proposed changes an upfront exemption of $1000 will apply to taxpayers participating in an employee share scheme, providing their taxable income is under $180,000 and the employee and the scheme meet certain other conditions. Changes will also be made to the deferral of tax on employee share scheme discounts. The changes will apply to shares, rights and stapled securities acquired after 1 July 2009. G&F has released a tax brief on the Exposure Draft. To access please click here.

Appeals Update
 
BNZ Investments Limited & Ors v Commissioner of Inland Revenue: The Bank of New Zealand has advised that it will appeal the decision of Justice Wild in the High Court of New Zealand. Justice Wild found that several structured finance transactions the Bank had entered into were tax avoidance arrangements and therefore void.  

Tax Cases
FCT v Barnes Development Pty Ltd [2009] FCA 830, 7 August 2009: The Federal Court has held that the Commissioner was entitled to sue for an amount of money required to be paid under a notice served on a company under s.260-5 of the TAA 1953. The notice had been served in respect of loan account debts that the company owed to its husband and wife directors who were personally indebted to the Commissioner for $1.4m. The company argued that s.260-5 could not be invoked for the purposes of civil recovery proceedings as it was a penal provision. The Court found that Parliament had not intended for criminal sanctions to be the only purpose for which the provision could be enforced.  

Progress of Legislation

As at 14.8.09