Greenwoods & Freehills Weekly Tax Highlights - Week Ended 19.3.10

ATO Documents

Released 17.3.09

Class Rulings
CR 2010/7: Fringe benefits tax: health services provided by Wesley Corporate Health
CR 2010/8: Income tax: assessability of lump sum compensation receipts and interest paid under section 45A of the Workers Rehabilitation and Compensation Act 1986 (South Australia)
Product Ruling
PR 2010/5: Income tax: Gunns Plantations Limited Woodlot Project 2010
Addenda 
TD 92/172:Income tax: capital gains: do the dwellings referred to in subsection 160ZZQ(9) have to be post-CGT assets?
TR 2006/3: Income tax: government payments to industry to assist entities (including individuals) to continue, commence or cease business?
Notices of Withdrawal
TD 2005/16: Income tax: does paragraph 251L(1)(b) of the Income Tax Assessment Act 1936 prevent persons other than registered tax agents from giving advice about a taxation law for a fee?
TD 92/173: Income tax: capital gains: does subsection 160ZZQ(9) require each spouse to have an interest in each dwelling referred to
Erratum
TR 2010/1: Income tax: superannuation contributions

Released 19.3.10

New Interpretative Decisions
ATO ID 2010/63: Deducting tax loss: saving rule - limit on extent that the tax loss can be reflected
ATO ID 2010/64: Capital allowances: depreciating asset - decline in value calculation - use of a mining, quarrying or prospecting right - conducting particular feasibility studies
ATO ID 2010/65: Capital allowances: depreciating asset - decline in value calculation - use of a mining, quarrying or prospecting right - precluding exploration by another entity - priority in obtaining the grant of a mining, quarrying or prospecting right
ATO ID 2010/66: Capital allowances: depreciating asset - decline in value calculation - use of a mining, quarrying or prospecting right - operations in the course of working a mining property
ATO ID 2010/67: Capital Allowances: depreciating asset - decline in value calculation - use of a mining, quarrying or prospecting right - mining property
ATO ID 2010/68: Lump sum payments received by a foreign resident as arrears of past periodic payments and the Pension Article of the Italian Convention
Withdrawn Interpretative Decisions
ATO ID 2002/259: Capital gain on asset owned by mutual association
ATO ID 2002/709: GST and sale of a block of residential flats with leases intact as a going concern
ATO ID 2002/710: GST and increasing adjustment for the purchase of a block of residential flats with leases intact as a going concern
ATO ID 2002/787: Capital gains tax: Small business relief - active asset - freehold of a hotel 
ATO ID 2003/1111: Deducting tax loss: saving rule - limit on extent that the tax loss can be reflected
ATO ID 2003/494: Meaning of tax loss: 'Saving Rule'- Part of tax loss transferred in an earlier income year
ATO ID 2003/495: Meaning of tax loss: 'saving rule'- tax loss reduced under forgiveness of commercial debts provisions
ATO ID 2003/499: Deducting tax loss: saving rule - reduced capital gain made in respect of indirect equity interest where interest previously subject to Subdivision 126-B roll-over 
ATO ID 2003/501: Deducting tax loss: saving rule - loss transfer
ATO ID 2003/546: Commercial debt forgiveness: interest free loan provided by beneficiary of a discretionary trust
ATO ID 2003/628: Capital gains tax: CGT discount - asset sold within 12 months of becoming an Australian resident
ATO ID 2003/632: Capital gains tax: demergers - companies which only own shares in other companies
ATO ID 2003/633: Capital gains tax: demergers - assets which cannot be demerged
ATO ID 2003/637: CGT: Capital proceeds payable by instalments - total amount receivable included as capital proceeds
ATO ID 2003/643: Group company loss transfer - company not in existence, dormant company
ATO ID 2003/648: Trust loss provisions: Family Trust Election (FTE) - family control test - transitional provisions
ATO ID 2003/652: Capital gains tax: CGT discount - public trading trust
ATO ID 2003/693: Capital gains tax: Commissioner's discretion to allow further time to make a section 160ZZO election
ATO ID 2003/713: CGT small business concessions: extension of time for active asset - shares
ATO ID 2003/722: Section 160ZZOA exit provisions: no eligible sub-group break up
ATO ID 2003/723: Section 160ZZOA exit provisions: eligible sub-group break up
ATO ID 2003/724: Section 160ZZOA exit provisions: eligible sub-group break up - later change to sub-group
ATO ID 2003/743: CGT small business retirement exemption: whether amount paid is 'unreasonable'
ATO ID 2003/803: Capital gains tax: foreign exchange gains or losses - calculating the cost base of withdrawals from bank accounts denominated in foreign currency
ATO ID 2003/859: Capital gains tax : trust to company rollover - trust ceasing to exist
ATO ID 2003/863: Capital gains tax: acquisition of right to sell leased plant - whether deemed capital proceeds received
ATO ID 2003/910: CGT: Rollover of depreciating assets from a partnership (STS taxpayer) to a wholly-owned company
ATO ID 2003/970: Capital gains tax: CGT event J1 - transfer of roll over asset intra-group
ATO ID 2003/984: Compensation receipts: taxation of amounts paid in respect of personal injury
ATO ID 2003/985: Compensation receipts - taxation of further amounts received by Great Central Mines shareholders
ATO ID 2003/999: Capital gains tax: rollover relief - transfer of assets to company in same wholly-owned group prior to 1 July 2003
ATO ID 2005/11: Commercial Debt Forgiveness - interaction with Subdivision 165-CD of the Income Tax Assessment Act 1997 - reduced cost base
ATO ID 2005/174: Family trusts making interposed entity elections: different primary individuals

Tax Laws Amendment (2010 Measures No. 2) Bill 2010 

Introduced 17.3.10

Tax Laws Amendment (2010 Measures No. 2) Bill 2010 and the associated explanatory memorandum have been introduced into Parliament. The Bill contains a number of different measures. The Bill amends the non-commercial loan rules in Division 7A of the Income Tax Assessment Act 1936 to prevent a shareholder of a private company (or an associate of the shareholder) accessing tax-free dividends through the use of company assets, for less than their market value. The Bill also makes a range of other technical amendments to strengthen the non-commercial loan rules by ensuring that they cannot be circumvented by the use of corporate limited partnerships or by interposing entities between a private company and its shareholders. The Bill also extends tax file number withholding arrangements to closely held trusts, including family trusts. The Bill exempts from income tax the value of the HECS-HELP benefit received by an eligible applicant. The Bill also makes a number of small amendments to the taxation of carbon storage technology and adds new entities to the list of deductible gift recipients.

Commissioner of Taxation v BHP Billiton Finance Limited [2010] FCAFC 25 (17 March 2010): The Full Federal Court has upheld a decision that the taxpayer, which was the internal financier for the company Group, was entitled to a deduction under the bad debt provisions. The debts consisted of loans made to 2 other members of the Group for mining projects that failed. The Full Court found the taxpayer was carrying on a business of lending money, the loans had been made in the ordinary course of its business and the debts were "bad" for the purposes of s.25-35. The Court found that the relevant loans were not limited recourse debt and the taxpayer did not obtain a "tax benefit" for the purposes of Pt IVA.

 As at 19.3.10