Greenwoods & Freehills Weekly Tax Highlights - Week Ended 14.5.10

ATO documents

Released 12.5.10


Class Ruling
CR 2010/14: Income tax: Seven Group Holdings Limited - Issue of Transferable Extendable Listed Yield Shares 4
Product Rulings
PR 2010/10: Income tax: Elders Diversified Forestry Project 2010 - Regular Contribution Investors
PR 2010/11: Income tax: Elders Diversified Forestry Project 2010 - Single Contribution Investors 
Notices of Withdrawal
TD 50: Capital Gains: Where post-CGT land has been held for more than 12 months, is indexation available in relation to the cost of a house built for investment purposes on the land and sold within 12 months of construction?
TD 37: Capital Gains: When does the grant of a new statutory licence to which section 160ZZPE applies constitute the acquisition of a separate asset?
TR 95/6: Income tax: primary production and forestry [Partially withdrawn: Paragraphs 50 and 51 omitted with effect from 12 May 2010.]
Addenda
TD 92/135: Income tax: capital gains: is the principal residence exemption relevant when the proceeds of sale of a dwelling are treated as income under ordinary concepts?
TD 92/147: Income tax: capital gains: how soon after erection must a dwelling become the sole or principal residence of a taxpayer to satisfy the conditions in subsection 160ZZQ(5)?
TD 95/7: Income tax: capital gains: does subsection 160M(12) of the Income Tax Assessment Act 1936 prevent a taxpayer from making an election under subsection 160ZZQ(11A) for a sole or principal residence (SPR) that the taxpayer owned before becoming a resident of Australia? 
PR 2010/8: Income tax: Rewards Group Premium Timber Project 2010

Released 14.5.10

Interpretative Decisions
ATO ID 2010/116: CGT event C1: sale of shares without the owner's consent
ATO ID 2010/117: Exempt income: overseas employment income of employees of a charitable organisation - income earned after 1 July 2009
Withdrawn Interpretative Decisions
ATO ID 2001/376: Capital gains tax: Sale of shares without consent of owner
ATO ID 2002/657: Legal Expenses - seeking a better redundancy package
ATO ID 2002/732: Retirement Income Entities - Acquisition of residential property from members
ATO ID 2003/250: CGT Dairy industry deregulation: small business concessions - active asset - payment right
ATO ID 2003/594: Primary Production Income: distributions from WoolStock Australia Ltd
ATO ID 2004/240: CGT small business concessions: CGT event J2 and J3 - capital proceeds for retirement exemption
ATO ID 2004/4: Consolidation: Single entity rule - intra-group transfer of pre-consolidation debt
ATO ID 2004/619: Consolidation: subsidiary member
ATO ID 2004/92: Retirement income entities - acquisition of residential property from members
ATO ID 2005/97: Retirement income entities: failure of auditor to report within specified period
ATO ID 2009/106: Assessability of foreign branch income derived from New Zealand
ATO ID 2009/50: Assessability of foreign branch income derived from New Zealand

Released 13.5.10

The Government has introduced the Tax Laws Amendment (Foreign Source Income Deferral) Bill (No. 1) 2010 (and explanatory memorandum) into Parliament. The Bill would repeal the foreign investment fund (FIF) and deemed present entitlement rules, with effect from 1 July 2010. This is the first step in the reform of Australia’s foreign source income attribution rules, which the Government announced as part of the 2009-10 Federal Budget. Exposure draft legislation on the anti-roll-up fund rule, to replace the FIF provisions, has already been released for public comment. Exposure draft legislation on the reformed CFC rules is expected to follow.

Released 13.5.10

The Government has introduced the Tax Laws Amendment (Research and Development) Bill 2010 (and explanatory memorandum) into Parliament. The Bill would introduce a 45% refundable tax offset for companies with a turnover of less than $20 million, and a 40% non-refundable tax offset for all other companies. The Government also introduced the supporting Bill, Income Tax Rates Amendment (Research and Development) Bill 2010) which would provide for a new R&D tax measure to replace the existing R&D Tax Incentive for the 2010-11 and later income years.

Australia has signed an Agreement for the Exchange of Information Relating to Taxes with the Marshall Islands (Australia’s 25th such agreement). The Agreement provides for the exchange of information on request in both criminal and civil tax matters.