Daily Archives: February 15, 2017

*TA 2014/1 – ATO auditing special purpose trusts used by property developers to argue proceeds are not revenue but capital gains with 50% discount [35]

The ATO on Mon 28.7.2014, issued Taxpayer Alert TA 2014/1 which describes arrangements where property developers use trusts to return the proceeds from property development as capital gains instead of income on revenue account. ATO Deputy Commissioner Tim Dyce said the ATO has “begun auditing property developers who are carrying out activities which conflict with…

PS LA 2011/27 on when ATO view of the law will only be applied prospectively modified after Macquarie Bank case [34]

The ATO on Wed 30.7.2014 released for comment Draft Practice Statement Law Administration PS LA 2011/27 (Matters the Commissioner considers when determining whether the ATO view of the law should only be applied prospectively). The ATO is seeking comments on proposed amendments to the Draft Practice Statement following the Full Federal Court’s decision in Macquarie…

TOFA and term deposit provided as security: ATO ID [33]

The ATO Fri 25.7.2014, issued ATO ID 2014/25 which deals with the following: Is a term deposit provided as security for a performance bond a right or obligation under a guarantee or indemnity subject to the exception in s 230-460(8) of the ITAA 1997? The ID says no, the term deposit is not a guarantee or…

PR 2014/16 – Tax consequences of a novated vehicle lease [32]

The ATO on Wed 16.7.2014, released Product Ruling PR 2014/16 (Tax consequences for employees and employers under a LeasePlan novated vehicle lease). It applies to entities that enter into the scheme from Wed 16.7.2014 until 30 June 2017. The Ruling states that subject to certain assumptions, payments of the monthly rental by the employer, under the novated…

PR 2014/13-15 Insurance cover; deductibility of investment [31]

The ATO on Wed 2.7.2014, issued the following Product Rulings: PR 2014/13: CommInsure Protection – Split TPD Cover. It applies to entities that enter into the scheme from 1 July 2014 until 30 June 2017. The Ruling states that a SMSF that is a complying super fund and holds a policy to which split TPD cover applies as a…

CR 2014/57-60 – Return of capital; early retirement; cancellation of units; FBT log book [30]

The ATO on Wed 9.7.2014, issued the following Class Rulings: CR 2014/57: MYOB Group Pty Limited – Return of Capital. It applies from 1 January 2014 to 31 December 2014. Among other things, the Ruling states that the return of capital will not be a dividend as defined in s 6(1) of the ITAA 1936. CR 2014/58: Unitywater early retirement…

CR 2014/54-56 – Incentive plan; Government bonds; FBT and employee purchase program [29]

The ATO Wed 2.7.2014, released the following Class Rulings: CR 2014/54: Goodman Group Long Term Incentive Plan. It applies from 1 July 2012. The Ruling broadly states that the rights acquired under the scheme are ESS interests acquired under an employee share scheme and Div 83A of the ITAA 1997 will apply to the interests.  CR 2014/55: Australian…

*TD 2014/20 – Div 7A benchmark interest rate for 2014-15 is 5.95% (down from 6.20%) [28]

This TD released on Wed 16.7.2014, states that for the income year that commenced on 1 July 2014, the benchmark interest rate for the purposes of ss 109N and 109E of the ITAA 1936 is 5.95% (down from 6.20% per annum for 2013-14). [LTN 135, 16/7/14]

TD 2014/19 – Reasonable travel and meal allowance amounts for 2014-15 [27]

This Determination, released Wed 9.7.2014, sets out the amounts the Commissioner considers are reasonable for the 2014-15 income year in relation to claims made for: overtime meal allowance expenses – the amount is $28.20; domestic travel allowance expenses. The reasonable amounts are given for: (i) accommodation at daily rates (for domestic travel only); (ii) meals…

TD 2014/18 – Thin cap rules and special purpose securitisation entities [26]

This Determination, issued Wed 2.7.2014, states that the exemption in s820-39 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 provided that…