Greenwoods & Freehills Weekly Tax Highlights - Week Ended 18.9.09

ATO Documents

Released 16.9.09

Final Product Rulings
PR 2009/49: Income tax: Macquarie Almond Investment 2009 - Late Growers 
Final Class Rulings
CR 2009/50: Income tax: Department of Human Services (Vic) Disability Support Direct Payments Project
CR 2009/51: Income tax: scrip for scrip: merger of Australian Wealth Management Limited and IOOF Holdings Limited
CR 2009/52: Fringe benefits tax: employer clients of Australia and New Zealand Banking Group Limited (ANZ) who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 or who are rebatable employers under section 65J of that Act and whose employees make use of the ANZ Meal Entertainment Card facility
CR 2009/53: Fringe benefits tax: employer clients of Australia and New Zealand Banking Group Limited (ANZ) who are rebatable employers under section 65J of the Fringe Benefits Tax Assessment Act 1986 and whose employees make use of the ANZ Salary Packaging Card facility
Draft Taxation Determinations
TD 2009/D8: Income tax: to obtain a deduction under section 25-90 of the Income Tax Assessment Act 1997 for a cost in relation to a debt interest does the taxpayer have to actually derive a dividend to which section 23AJ of the Income Tax Assessment Act 1936 applies in the same income year as that in which the cost is incurred?  
Notice of Withdrawal
CR 2006/84: Income tax: Department of Human Services (Vic) Disability Support Direct Payment Plan
Addendum
CR 2008/91: Income tax: provision of security camera systems to Queensland taxi service licence holders

Released 18.9.09

Interpretative Decisions
ATO ID 2009/103: GST and services related to accommodation in a retirement village operated by an endorsed charitable institution or trustee of a charitable fund that are GST-free 
ATO ID 2009/104: GST and services not related to accommodation in a retirement village operated by an endorsed charitable institution or trustee of a charitable fund
ATO ID 2009/105: Foreign Income Tax Offset: tax paid on pension and rental income earned in New Caledonia
Withdrawn Interpretative Decisions
ATO ID 2004/905: Foreign tax credit: tax paid on pension and rental income earned in New Caledonia

Draft Legislation - Employee Share Schemes

Released 15.9.09

The Treasury has released further draft legislation and an explanatory statement with respect to the Government's reform of employee share schemes. The draft legislation includes the proposed transitional rules, which had not been included in the previous draft legislation released in August 2009. The new rules will apply to employee share scheme interests acquired on and after 1 July 2009. Shares or rights on which tax was paid under Division 13A will continue to be subject to the old rules. Shares or rights acquired before 1 July 2009, on which tax has been deferred beyond 1 July 2009, will be brought within the new rules.    

GST Consultation Paper

Released 11.9.09

Treasury has released a consultation paper responding to the Board of Taxation's review of the legal framework for the administration of the GST. It is the second such discussion paper released by the Government. Topics discussed in the paper include GST self-assessment, adjustments, general law and tax law partnerships, bare trusts and running balance accounts.

R&D Tax Incentive Consultation Paper

Released 7.9.09

Treasury has released a consultation paper: New Research and Development Tax Incentive. The key two proposals discussed in the paper are a 45 per cent refundable tax credit (equivalent to a 150 per cent tax deduction) for small firms with a turnover of less than $20 million per annum, and a 40 per cent non-refundable tax credit (equivalent to a 133 per cent tax deduction) for firms with a turnover of $20 million or more per annum.

Tax Cases

Commonwealth Bank of Australia v Deputy Commissioner of Taxation [2009] FCAFC 126 (16 September 2009): The Full Federal Court has held that partnerships between the taxpayer and one of its subsidiaries (the Commonwealth Savings Bank) were dissolved when the banks were integrated in 1993. As such, the tax cost of the assets of the partnerships could not be reset to market value when the group consolidated in 2002.

Legislative Update

Tax Laws Amendment (2009 Measures No 5) Bill 2009 and the accompanying explanatory memorandum was introduced into Parliament on 16.9.09. The Bill includes amendments relating to: