For the 2010-11 income year, the CGT improvement threshold is $126,619 (TD 2010/16). The improvement threshold is determined for the purposes of sec 108-70 ITAA 1997 (about when a capital improvement to a pre-CGT asset is a separate asset) and sec 108-75 ITAA 1997 (about capital improvements to CGT assets for which a rollover may [...]
The recent decision of the Full Federal Court in South Steyne Hotel Pty Ltd v FCT ([2009] FCAFC 155) has created some uncertainty about the GST consequences of a sale by a lessor of its reversionary interest in these premises. In a decision impact statement issued on 30 November 2009 the Commissioner has set out [...]
A final determination has been issued to the effect that interest on a loan used to settle moneys on trust to benefit the borrower and others cannot be deducted in full as a general deduction under sec 8-1 ITAA 1997 (TD 2009/17). Points made in the determination are: the taxpayer’s interest expense can only be [...]
A draft ruling has been issued which deals with the trading stock and general income tax implications where a seller sells trading stock to a buyer or a buyer purchases trading stock from a seller where: trade incentives in the form of discounts, rebates or other incentives are received by the buyer from the seller [...]
A draft determination has been issued which considers the issue whether the expression “real property” in the definition of taxable Australian property (sec 885-20 ITAA 1997) includes a leasehold interest in land (TR 2009/D1). The view is taken that, having regard to the objects and context of Div 855 ITAA 1997, it is clear that [...]
The Commissioner has released a final ruling which considers the GST consequences resulting from payments made when an arrangement under which a particular supply was intended to be made (intended supply) does not proceed or does not proceed in the manner originally contemplated. These payments can include the forfeiture of all or part of the [...]
The Commissioner has released a final ruling which outlines the requirements to be satisfied before any payment made to a person whose employment is terminated qualifies for treatment as a genuine redundancy payment under sec 83-175 ITAA 1997 (TR 2009/2). Genuine redundancy payments are tax-free up to a limit worked out under sec 83-170 ITAA [...]
A final determination has been issued to the effect that, in exercising the discretion (under sec 109Y(2) ITAA 1936) to substitute an appropriate value for a private company’s assets for the purpose of calculating a private company’s distributable surplus, the Commissioner can take into account the value of the company’s assets not shown in the [...]
A final determination (TD 2009/2) considers when foreign income tax is imposed on the partners, not the partnership, within the meaning of sec 830-10(1)(b) ITAA 1997 for the purpose of determining whether a foreign limited partnership is a foreign hybrid limited partnership under Div 830 ITAA 1997 (foreign hybrids).
The Commissioner has issued a final ruling which explains the ATO’s view of how the definition of “employee” and “employer” contained in sec 12(8) of the Superannuation Guarantee (Administration) Act 1992 (“SGAA”) applies to sportspersons and persons providing services in connection with sporting activities (SGR 2009/1). The ruling also discusses whether prize monies and other [...]
A final determination has been issued on the meaning of the definition “effectively non-contingent obligation” in sec 974-135(1) ITAA 1997 which is used for several purposes of the debt test in the debt/equity rules (TD 2009/1). Under sec 974-135(1) ITAA 1991, there will be an “effectively non-contingent obligation” to take an action under a [...]
A determination has been issued which provides an update of amounts that the Commissioner will accept as estimates of the value of goods taken from trading stock for private use by taxpayers in named industries (TD 2008/32). The updated amounts apply to the 2008-9 income year. The determination should be read with IT 2659 income [...]
A draft taxation determination has been issued to the effect that in exercising the discretion under sec 109Y(2) ITAA 1936 to substitute an appropriate value for a private company’s assets for the purpose of calculating the company’s distributable surplus the Commissioner can take into account the value of the company’s assets not shown in the [...]
The Commissioner has issued a draft ruling which explains his view of when an adjustment for a change in extent of creditable purpose arises under Div 129 GSTA in relation to acquisitions made in constructing new residential premises (GSTR 2008/D5). The draft ruling provides guidance on how to determine the extent to which an [...]
A final determination has been issued which considers when income tax of a private company is a “present legal obligation” for the purposes of the distributable surplus calculation for the purposes of Div 7A ITAA 1936 under sec 109Y(2) (TD 2007/28).
The Commissioner has issued a draft determination to the effect that a dividend reinvestment plan with the features set out in the draft determination and accounted for in accordance with the accounting set out in the draft determination will not taint the issuing company’s share capital account for the purposes of Div 197 ITAA 1997 [...]
A final ruling has been issued which sets out the Commissioner’s interpretation of the definition of “Australian superannuation fund” in sec 295-95(2) ITAA 1997 (which has applied since 1 July 2007) (TR 2008/9). The definition of “Australian superannuation fund” is relevant in determining whether a superannuation fund is a “complying superannuation fund” for the purposes [...]
The Commissioner has issued a final determination in which it is accepted that the principles governing the deductibility of compound interest are the same as those that govern the deductibility of ordinary interest (TD 2008/27). The Commissioner accepts that this is the law following the decision of the Full Federal Court in Hart v FCT [...]
Taxation Ruling TR 2000/12, which explained the requirement for a deductible gift recipient (DGR) to maintain a gift fund, was withdrawn as it was no longer accurate following the legislative amendments made by the Tax Laws Amendment (2006 Measures No 7) Act 2007 that took effect from 12 April 2007. These amendments, for example, [...]
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29 Sep 2010
Amending Bills reintroduced
Several amending Bills, including the Tax Laws Amendment (2010 Measures No 4) Bill 2010, were reintroduced into Federal ..
15 Sep 2010
Freezing orders continued
The Federal Court has continued freezing orders against five foreign corporations which had never filed tax returns in A..
31 Aug 2010
Penalty for recklessness
The Federal Court has allowed the Commissioner's appeal against a decision of the AAT and held that the taxpayer had fai.. |