Greenwoods & Freehills Weekly Tax Highlights - Week Ended 21.5.10

ATO documents

Released 19.5.10

Class Rulings
CR 2010/16: Income tax: proposed return of capital: Oceania Capital Partners Limited
CR 2010/17: Income tax: Selective Capital Reduction: Coal and Allied Industries Limited
CR 2010/18: Income tax: proposed return of capital: Energy Infrastructure Trust
Product Rulings
PR 2010/12: Income tax: TFS Spicatum Project 2010
PR 2010/13: Income tax: deductibility of interest incurred on borrowings in relation to Macquarie Fusion Funds - June 2010 Offer
Taxation Determination
TD 2010/16: Income tax: capital gains: what is the improvement threshold for the 2010-11 income year under section 108-85 of the Income Tax Assessment Act 1997?
Draft Fuel Taxation Determination
FTD 2010/D1: Fuel tax: is apportionment used when determining total fuel tax credits in calculating the net fuel amount under section 60-5 of the Fuel Tax Act 2006? 
Notices of Withdrawal
TD 51: Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer's sole or principal residence?
TD 92/134: Income tax: capital gains : how is a capital gain or loss determined if a dwelling has been occupied as a sole or principal residence for part only of the period of ownership?
TD 93/43: Income tax: capital gains: what is the amount of the consideration received in respect of the disposal of an asset where the consideration consists of shares which will be delivered at a later date and decline in value prior to delivery?
TD 93/45: Income tax: capital gains: if the parties to a contract for the sale of an asset renegotiate prior to settlement a lesser sum than the consideration originally agreed to, what is the consideration in respect of the resulting disposal and acquisition?
TD 95/9: Income tax: capital gains: if an election made for the purposes of subsection 160ZZQ(11) of the Income Tax Assessment Act 1936 covers more than one period of absence from a taxpayer's sole or principal residence (SPR), is the six year period referred to in subparagraph 160ZZQ(11)(d)(iii) available in relation to each period of absence?
SGR 94/2: Superannuation guarantee: extension of time under the Superannuation Guarantee (Administration) Act 1992 (SGAA)  
Addenda
TD 96/19: Income tax: capital gains: if a person (A):  improves a pre-CGT asset to which subsection 108-70(2) of the Income Tax Assessment Act 1997 applies; and disposes of the improved asset to A's spouse (B) under an order of the Court under the Family Law Act 1975 following marriage breakdown, how does section 126-5 of that Act apply: (i) to the disposal of the improved asset by A; and (ii) to any later disposal of the improved asset by B?
TD 96/21: Income tax: capital gains: if after 19 September 1985 a taxpayer makes a capital improvement to a pre-CGT principal residence, and the improvement is deemed to be a separate asset under subsection 160P(6) of the Income Tax Assessment Act 1936 , is a disposal of that asset subject to the exemption for a principal place of residence?
TD 97/3: Income tax: capital gains: if a parcel of land acquired after 19 September 1985 is subdivided into lots ('blocks'), does Part IIIA of the Income Tax Assessment Act 1936 treat a disposal of a block of the subdivided land as the disposal of part of an asset (the original land parcel) or the disposal of an asset in its own right (the subdivided block)?
Draft Practice Statement
PS LA 3309:Apportionment for the purposes of the Fuel Tax Act 2006. To provide guidance to tax officers by explaining when and how entities can satisfy the 'fair and reasonable' requirement in determining the extent to which they are entitled to a fuel tax credit. 
Decision Impact Statements
NSD 685 of 2009: TT-Line Company Ltd v Commissioner of Taxation 

Released 21.5.10

Interpretative Decisions
ATO ID 2010/118: Exempt income: 'defence civilian' deployed outside Australia
Withdrawn Interpretative Decisions
ATO ID 2001/736: Legal Expenses
ATO ID 2002/677: Retirement income entities - arm's length investment.
ATO ID 2003/1127: Retirement income entities - acquisition of collectable banknotes and coins from a related party
ATO ID 2004/251: Retirement income entities - arms length arrangement

Released 20.5.10

The Running Balance Accounts (RBA) system was intended to provide taxpayers with a single tax account statement that covered all of their tax debts. As part of the 2010-11 Federal Budget, the Government announced a proposal to reform the RBA system. The Government acknowledged that the current provisions are deficient in that a taxpayer’s RBA statement may not capture all of their tax-related debts – for instance, general interest charges are not currently captured. Treasury has now released a discussion paper seeking comment on the proposed RBA system reform. The discussion paper also covers proposed changes to the provisions dealing with the payment of interest to taxpayers in the event of overpayments of tax. Currently, taxpayers are entitled to interest on overpayments of some, but not all taxes.