Greenwoods & Freehills Weekly Tax Highlights - Week Ended 16.4.10

ATO Documents

Released 13.4.10

Excise
EXC 2010/1: Excise (Spirit blending exemptions) Determination 2010 (No.1)

Released 14.4.10
 
Product Rulings
PR 2010/8: Income tax: Rewards Group Premium Timber Project 2010
Notice of Withdrawal
TD 2004/63: Income tax: where a private company beneficiary of a trust estate is taken to have made a loan under section 109UB of the Income Tax Assessment Act 1936 because of a loan made by the trustee to a shareholder of the private company or shareholder's associate, are repayments made in relation to the trustee's loan taken into account in determining whether the private company is taken to have paid a dividend under section 109D?

Released 16.4.10

New Interpretative Decisions
ATO ID 2010/82: Division 7A: the first minimum yearly repayment - loan repayments made before the company's lodgement day for the previous year of income
ATO ID 2010/83: GST: revoking agreement to apply the margin scheme
ATO ID 2010/84: Capital gains tax: CGT event E4 - transfer of property
ATO ID 2010/85: Trust income: disclaimer of an entitlement to trust income
ATO ID 2010/86: Thin capitalisation rules: risk-weighted assets - non-banking members
ATO ID 2010/87: Thin capitalisation rules: Tier 1 prudential capital deductions - non-banking members
ATO ID 2010/88: Capital gains and foreign residents: meaning of 'holds' for the purposes of a foreign resident's direct participation interest in a Part X Australian company
ATO ID 2010/89: Whether non-resident royalty withholding tax is based on the GST inclusive or GST exclusive amount paid in respect of royalties
ATO ID 2010/90: CGT small business concessions: active asset test - company liquidations and cancellation of shares - relevant business ceases
Withdrawn Interpretative Decisions
ATO ID 2001/131: Medical expenses rebate
ATO ID 2001/156: Medical expenses rebate
ATO ID 2001/181: Medical expenses rebate - repayment of Medicare benefits
ATO ID 2001/337: Medical expenses rebate - expenses incurred overseas
ATO ID 2001/379: Medical Expenses Rebate - dancing lessons
ATO ID 2001/477: Rental Property Expenses - Building and pest inspection reports prior to purchase
ATO ID 2001/529: Superannuation, retirement and employment termination: Bona Fide Redundancy and Director of a Company
ATO ID 2001/536: Superannuation, retirement and employment termination: Payment for restraint of trade
ATO ID 2001/621: Medical expenses tax offset - respite care in an aged care facility
ATO ID 2001/625: Medical expenses tax offset - therapeutic treatment - course of study at a university
ATO ID 2001/626: Medical expenses tax offset - expenses incurred in providing training for therapists
ATO ID 2001/629: Medical Expenses Tax Offset - electric scooter as a medical or surgical appliance 
ATO ID 2001/698: Medical expenses tax offset - costs of a surrogate mother
ATO ID 2001/766: Medical expenses tax offset - 'rebatable amount'
ATO ID 2001/774: Accommodation as a work related expense
ATO ID 2001/8: Superannuation: Eligible Termination Payments (Payout of Novated Lease)
ATO ID 2002/135: Superannuation, retirement & employment termination: Eligible termination payments and Bona fide redundancy payments
ATO ID 2002/145: Superannuation, retirement and employment termination: Eligible termination payments (ETPs). Bona fide redundancy. Ex-gratia payment to casual employee.
ATO ID 2002/148: Superannuation, retirement and employment termination: Eligible termination payments. Bona fide redundancy. No agreement to re-employ.
ATO ID 2002/217: Medical Expenses Tax Offset - medical expenses paid for disabled relative
ATO ID 2002/287: Superannuation, retirement and employment termination: Eligible termination payments (Invalidity payments and overseas pensions)
ATO ID 2002/332: Medical Expenses Tax Offset - Personal Lift
ATO ID 2002/335: Superannuation, retirement and employment termination: Eligible termination payment (ETP) paid to Director. 
ATO ID 2002/345: Medical Expenses Tax Offset - herbal medication
ATO ID 2002/353: Medical Expenses Tax Offset - herbal medication not purchased from a chemist
ATO ID 2002/396: Medical Expenses tax offset - trustee pays medical expenses
ATO ID 2002/551: Retirement income entities - bank account overdraft
ATO ID 2002/57: Medical Expenses Tax Offset - costs of home treatment room in taxpayer's home
ATO ID 2002/624: Medical expenses tax offset - 'Spalding Method'
ATO ID 2002/631: CGT - small business concessions - active asset - ready for use
ATO ID 2002/651: Excise - Payments - Diesel and Alternative Fuels Grants Scheme - What is an emergency vehicle?
ATO ID 2002/659: Retirement income entities: In-house assets and leasing property from a member
ATO ID 2002/721: Annuity & superannuation pensions: Undeducted purchase price
ATO ID 2002/747: Medical Expenses Tax Offset - voice therapy
ATO ID 2002/779: Disposal of trading stock - transfer to amalgamated entity
ATO ID 2002/826: First Child Tax Offset (Baby Bonus) - transfer to same sex partner
ATO ID 2002/827: Medical expenses tax offset - word prediction and voice synthesiser
ATO ID 2002/843: Excise - Payments - Diesel and Alternative Fuels Grants Scheme - fuel used in refrigerated trailers transported by contractors
ATO ID 2002/852: Medical expenses tax offset- modified car designed to carry a passenger seated in a wheelchair
ATO ID 2002/854: Excise - Payments - Diesel and Alternative Fuels Grants Scheme - eligibility of refrigerated trailers
ATO ID 2002/896: Excise - Payments - Diesel and Alternative Fuels Grants Scheme - Travel in metropolitan area by buses on an advertised charter or scheduled service.
ATO ID 2003/1067: Employee share scheme: ordinary share requirement for 'qualifying shares'
ATO ID 2003/1068: Employee share scheme: ordinary share requirement for 'qualifying rights'
ATO ID 2003/1174: GST and choosing to apply the margin scheme on a supply of a separately titled residential unit and a separately strata titled car space 
ATO ID 2003/285: Diesel and Alternative Fuels Grants Scheme - Eligibility of Driver Training Vehicle
ATO ID 2003/631: Non Commercial Losses: forestry - business not being carried on
ATO ID 2003/661: Superannuation: Undeducted Purchase Price (UPP) - Foreign pension - lifetime pension commencing prior to 1 July 1983.
ATO ID 2003/808: Reasonable benefit limits (RBL): effect of changing the terms of a superannuation pension after the date of commencement. 
ATO ID 2003/844: CGT small business concessions: active asset test - company liquidations and cancellation of shares - relevant business ceases
ATO ID 2003/961: Non Commercial Losses: loss deferral rule - long-term averaging of primary producers' tax liability
ATO ID 2004/152: Consolidation - modified market value
ATO ID 2004/169: Diesel and Alternative Fuels Grants Scheme: emergency vehicles - police vehicles
ATO ID 2004/262: Non Commercial Losses: assessable income - whether Landcare grant is income 'from' the business activity
ATO ID 2004/304: Additional contribution to a superannuation pension that has commenced to be paid
ATO ID 2004/331: Diesel and Alternative Fuels Grants Scheme: emergency vehicles - firefighting activities
ATO ID 2004/429: Diesel and Alternative Fuel Grants Scheme: primary production business activities
ATO ID 2004/468: Non Commercial losses: artist exception - whether artist's manager or agent is conducting a 'professional arts business'.
ATO ID 2004/510: Non Commercial Losses: Property test and partly used dwelling for business
ATO ID 2004/97: Excise: brandy, whisky or rum aged in a vat with wooden walls and a stainless steel floor - whether 'matured by storage in wood'
ATO ID 2005/209: Market linked income stream: relevant number
ATO ID 2005/220: Fuel Sales Grants - Fuel sales - Comparable Locations 
ATO ID 2005/328: Excise: classification of beer - flavoured with a low alcohol flavour
ATO ID 2006/54: Energy Grants (Credits) Scheme: forestry - rotary peel veneer plant
ATO ID 2006/78: Excise: manufacturer's licence - refuse an application to renew a licence

Amendments are also proposed to ensure the MIT withholding tax rules are appropriately targeted at widely held trusts by excluding closely held trusts, and adding certain widely held pooled superannuation trusts to the list of specified widely held entities. 

Registered 14.4.10

The Income Tax Assessment Amendment Regulations 2010 (No 3) were registered on 14 April 2010. They amend the Income Tax Assessment Regulations 1997, by inserting new regulation 974-135D. Broadly, the new regulation facilitates the debt tax treatment of certain term subordinated notes under the debt/equity rules in Division 974. This will ordinarily include term subordinated notes that qualify as ADI Lower Tier 2 capital under APRA’s prudential standards (although the regulation is not limited to Lower Tier 2 capital of ADIs). The new regulation provides that obligations to pay principal or interest on a relevant note are not precluded from being “non-contingent obligations” of the issuer for the purposes of the debt test by certain solvency and capital adequacy clauses in the note.

Federal Parliament is now in recess until its scheduled resumption on 11 May 2010 (the day the Federal Budget will be handed down).

As at 16.4.10