Greenwoods & Freehills Weekly Tax Highlights - Week Ended 20.8.10

ATO Documents

Released 18.8.10

Class Rulings
CR 2010/42: Income tax: demerger of DuluxGroup Limited by Orica Limited - General Employee Exempt Share Plan
CR 2010/43: Income tax: destapling of the Asciano Group - Asciano Option and Rights Plan
Draft Taxation Determination
TD 2010/D2: Income tax: will the exemption in section 102NA of the Income Tax Assessment Act 1936 continue to apply to a unit trust that has become the interposed trust of a stapled group pursuant to Subdivision 124-Q of the Income Tax Assessment Act 1997 if the trustee of the unit trust later gains control (or the ability to control), either directly or indirectly, of operations of an entity that are in respect of a trading business within the meaning of section 102M of the Income Tax Assessment Act 1936? 
Addenda
GSTR 2003/5:  Goods and services tax: vouchers
GSTR 2006/4: Goods and services tax: determining the extent of creditable purpose for claiming input tax credits and for making adjustments for changes in extent of creditable purpose 

Released 19.8.10
 
Decision Impact Statements
VID911/2005: Primary Health Care Limited v Commissioner of Taxation 

Released 20.8.10

New Interpretative Decisions
ATO ID 2010/147: Bounties and subsidies: whether a repayable government payment a 'bounty or subsidy' 
ATO ID 2010/148: Transitional termination payments: variation to employment contract
Withdrawn Interpretative Decisions
ATO ID 2001/41: Superannuation: Eligible Termination Payment (Applicable Rate Of Tax)
ATO ID 2003/523: Superannuation, retirement and employment termination: interpretation of the term 'years of service'
ATO ID 2003/602: Superannuation, retirement & employment termination: eligible termination payment and invalidity.

Wentworth District Capital Ltd v Commissioner of Taxation [2010] FCA 862 (13 August 2010): The Federal Court has found that a community bank, despite being profitable and run in a commercial manner, was tax exempt under s.50-1 of the ITAA 1997 on the basis that it was “established for community service purposes”. The taxpayer company was established by community members in 1996 after the only bank in their rural town was closed. Although the company entered into franchise arrangements with Bendigo Bank, which bound the company to further the interests of the franchisor, the Federal Court found that was not its principal purpose. Further, the Federal Court found that the taxpayer was not in fact providing banking services, but rather creating the circumstances required for a bank to operate in the town – and that should properly be regarded as a community service purpose.

As At 20.8.10