Greenwoods & Freehills Weekly Tax Highlights - Week Ended 4.6.10

ATO documents

Released 2.6.10

Taxation Rulings
TR 2010/3: Income tax: Division 7A loans: trust entitlements
Draft Taxation Ruling
TR 2010/D2: Income tax: application of the transfer pricing provisions to business restructuring by multinational enterprises
Taxation Determinations
TD 2010/14: Income tax: does a failure to plant trees intended to be established under a forestry scheme affect the timing of deductions for expenditure on seasonally dependent agronomic activities where paragraph 8-1(1)(b) of the Income Tax Assessment Act 1997 and section 82KZMG of the Income Tax Assessment Act 1936 have previously been ruled to be satisfied?
TD 2010/15: Income tax: does failure to plant all the trees intended to be established under a forestry managed investment scheme covered by Division 394 of the Income Tax Assessment Act 1997 mean that no deduction is allowable under Division 394 of that Act in respect of a participant's initial contribution to the scheme?
Practice Statements
PS LA 3362: Division 7A: trust entitlements: To provide practical guidance on the administrative aspects of Taxation Ruling TR 2010/3
PS LA 2010/1: Approach to cases involving Division 6 of Part III of the Income Tax Assessment Act 1936: To advise staff of the approach to be taken in respect of compliance activities (including assessments, administrative penalties and interest charges), rulings, objections and appeals involving Division 6
Legislative Determination
PAYG Variations and Notices
OPS 2010/1: Taxation Administration Act Withholding Schedules 2010 Signed on Wednesday 25th May 2010 
Decision Impact Statements
S310 and S311/2009: Commissioner of Taxation v. Phillip Bamford & Ors; Phillip Bamford & Anor v Commissioner of Taxation 

Released 4.6.10

Interpretative Decisions
ATO ID 2010/119: Assessability of Swedish pensions derived by an Australian resident
ATO ID 2010/120: Tax exemption: payments received by Australian resident from Income Protection Policy - payments replace income (exempt foreign employment income)
ATO ID 2010/121: Capital gains tax: amalgamation of controlled foreign companies - cancellation of shares - capital proceeds for CGT event C2
ATO ID 2010/122: Medicare levy surcharge: private patient hospital cover requiring both an excess and co-payment under the policy
ATO ID 2010/123: United Kingdom limited partnership and managed investment trusts
ATO ID 2010/124: CGT event C1: sale of shares without the owner's consent - stockbroker's mistake
ATO ID 2010/125: GST and acquisition of an interest in a Delaware limited liability company
ATO ID 2010/126: Capital gains tax: small business concessions - maximum net asset value test - foreign resident's worldwide assets
Withdrawn Interpretative Decisions
ATO ID 2003/130: Medicare levy surcharge: policy has a nil excess but requires a co-payment in respect of claims made under the policy 

Released 3.6.10

Treasury has released exposure draft regulations (and explanatory material ) that will support the proposed extension of the TFN withholding rules in the Taxation Administration Act 1953 (TAA) to closely held trusts, including family trusts. The proposed amendments to the TAA are contained in the Tax Laws Amendment (2010 Measures No 2) Bill 2010, which is currently before the House of Representatives. The draft regulations contain details of the administration of the TFN withholding measure, such as the withholding rate and payments threshold. The draft regulations also exclude certain types of trusts from the TFN withholding measure, including discretionary mutual funds and employee share trusts.

Vidler v Commissioner of Taxation [2010] FCAFC 59 (1 June 2010): The Full Federal Court has dismissed the taxpayer's appeal against GST assessments for the sale of two separate blocks of vacant land. The Court held that vacant land is not land capable of being occupied as a residence or for residential accommodation within the definition of “residential premises” for the purposes of the GST Act.