The ATO on Wed 12.3.2014, issued the following Class Rulings: CR 2014/26: FBT: employer clients of Universal Gift Card Pty Ltd who make use of Universal Gift Card Pty Ltd’s Minor expenses card. It applies from 1 April 2013. Broadly, the Ruling states that the provision of the card by the employer to employees does not give…
The ATO Wed 5.3.2014, released the following Class Rulings: CR 2014/24: Scrip-for-scrip: exchange of securities in Atlassian Corporation Pty Limited for securities in Atlassian Corporation PLC. It applies from 1 July 2013 to 30 June 2014. Among other things, the Ruling states that subject to certain qualifications, shareholders who make a capital gain from the disposal of their shares…
The ATO on Wed 5.3.2014, issued an Erratum to Taxation Determination TD 2014/1 (Is the “dividend access share” arrangement of the type described in this Taxation Determination a scheme “by way of or in the nature of dividend stripping” within the meaning of s 177E of Pt IVA of the ITAA 1936?) to correct the date of…
This Draft TD, issued on Wed 12.3.2014, states that a UK resident company that beneficially owns a dividend paid by an Australian resident company, “holds directly” at least 10% of the voting power in the Australian company for the purposes of Article 10.2(a) of the Australia-UK DTA (the Dividends article) in the following circumstances: a…
This Draft TD, issued on Wed 12.3.2014, states that the exemption in s 820-39 of the ITAA 1997 can apply to a special purpose entity (SPE) that seeks finance for a project, which is established as a part of a securitised licence structure, used in some social infrastructure Public Private Partnerships (PPPs). It states this is…
The Tax Office on Wed 26.3.2014, released 4 TDs dealing with FBT rates, thresholds, etc for the 2014-15 FBT year (ie the FBT year commencing on 1 April 2014). TD 2014/3: the indexation factors for valuing non-remote housing are: NSW – 1.037; Vic – 1.020; Qld – 1.022; SA – 1.024; WA – 1.067; Tas – 1.010;…
This Determination, released on Wed 19.3.2014, provides an update of the amounts the Commissioner will accept for 2013-14 as estimates of the value of goods taken from trading stock for private use by taxpayers in certain specified industries. The amounts (which exclude GST) are: Type of Business Adult/Child over 16 years ($) Child 4-16 years…
This Draft Ruling, released on Wed 26.3.2014, deals with the application of s 770-75 of the ITAA 1997 (foreign income tax offset (FITO) limit) to an Australian resident taxpayer deriving gains and losses from foreign currency hedging transactions undertaken to mitigate the foreign currency fluctuation risk attached to the market value of a portfolio of assets.…
This Draft Ruling, issued on Wed 5.3.2014, outlines the taxation consequences for employers, trustees and employees who participate in employee remuneration trust arrangements (ERT). In particular, it explains how the taxation laws apply, when a contribution is made by an employer to the trustee of an ERT and benefits are paid or provided by the…
This Ruling, released on Wed 12.3.2014, deals with when commercial software developers derive income for the purposes of s 6-5 of the ITAA 1997 from licence agreements, and “hosted” or “cloud” arrangements. Broadly, the Ruling states where an amount properly attributable to a contractual obligation is subject to a “contingency of repayment”, the amount is derived…