Greenwoods & Freehills Weekly Tax Highlights - Week Ended 27.8.10

ATO Documents

Released 25.8.10

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 the 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 26.8.10
 
Decision Impact Statements
PS LA 3326: Technical discussion papers To explain when technical discussion papers should be published, and the processes for development and finalisation of technical discussion papers

Released 27.8.10

New Interpretative Decisions
ATO ID 2010/149: Primary production: assessable primary production income - dividends
ATO ID 2010/150: Research and development: clawback (section 73C) for grants and recouped expenditure where the grant or recoupment may be subject to a repayment obligation 
ATO ID 2010/151: Property fringe benefit: money - tangible or intangible property

Withdrawn Interpretative Decisions
ATO ID 2010/123: United Kingdom limited partnership and managed investment trusts
ATO ID 2010/33: German Kommanditgesellschaft and managed investment trusts

Australian Leisure Marine Pty Ltd and Commissioner of Taxation [2010] AATA 620 (20 August 2010): The AAT has affirmed that a taxpayer was not entitled to claim input tax credits (ITCs) to correct an understatement in its relevant BAS, after the taxpayer failed to notify the Commissioner of the error within the four year time limit. The taxpayer had made creditable importations in May and June 2005, but understated its entitlement to ITCs for the importations in its BAS for that quarter. Whilst it lodged a revised BAS on 6 August 2009, the AAT agreed with the Commissioner that this was outside of the maximum four year period in which ITCs can be claimed, pursuant to s.105-55 of the Taxation Administration Act. Further, the AAT found that s.105-55 had the effect of extinguishing a taxpayer’s right to notify the Commissioner and claim an ITC – as a result, neither the Commissioner nor the AAT had the discretion to extend the four year time limit.

As At 27.8.10