The ATO on Mon 25.2.2013, released a Decision Impact Statement on the Qld Supreme Court decision of McMurdo J in Hansen Yuncken Pty Ltd v Ian James Ericson trading as Flea’s Concreting & Anor [2012] QSC 51. In that decision, the Court held that a garnishee notice issued by the Commissioner under s 260-5 of the Taxation Administration…
The ATO has released for comment draft initial recommendations for changes it is proposing to make in Table B of Taxation Ruling TR 2012/2 (Effective lives of depreciating assets). Table B lists effective lives for various asset categories. The ATO proposes to withdraw effective life determinations for various assets in Table B (and not replace…
This Ruling, issued Wed 13.2.2013, sets out the Commissioner’s view on the way in which s 30-15 and Item 2.1.10 of the table in s 30-25(1) of the ITAA 1997 apply to individuals who make a gift or contribution to a public fund which purports to be a school building fund. In particular, the Ruling discusses factors…
This Ruling, released Wed 20.2.2012, considers certain aspects of the feedstock adjustment provisions in Subdiv 355-H of the ITAA 1997. Subdiv 355-H reduces the concessional effect of granting R&D tax offsets where the registered R&D activities also involve the production of a tangible product by including an amount in the assessable income of the entity.…
This Determination, released on Wed 6.2.2013], provides an update of the amounts the Commissioner will accept for 2012-13 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 Child 4-16 years ($) Adult/Child over 16 years…
This Determination, released Wed 27.2.2013, sets out the weekly amounts the Commissioner considers reasonable, under s 31G of the FBT Assessment Act, for food and drink expenses incurred by employees receiving a living-away-from-home allowance (LAFHA) fringe benefit in the period 1 April 2013 to 31 March 2014. If the total of food and drink expenses for an employee (including eligible…
The AAT has dismissed an appeal by a taxpayer and held there was no justification to extend the period for objections lodged in June 2012 against income tax assessments for the 1989 and 1995 income years. The taxpayer lodged an objection to the assessments for the relevant years in June 2012 (some 22 and 12 years late) on the…
The AAT has confirmed that lump sum payments made to former Qantas pilots under a “loss of licence insurance” scheme made under an agreement with their employer if they lost their pilots’ licence for medical reasons were assessable to the pilots as eligible termination payments (ETPs). The pilots argued that the payments, which were made…
The AAT has decided that a CGT asset was disposed of for the purposes of CGT event A1 when a Heads of Agreement was executed and not when the formal Contract of Sale was executed. The taxpayer made a capital gain of $704,129 when he sold his interest in a business. He claimed he was…
The AAT has decided that the repayment of a deposit paid upon entering into a contract to buy a retirement village was an assessable recoupment pursuant to s 20-20 of the ITAA 1997. Various entities formed a partnership, whose business included the acquisition, development and management of retirement village facilities. The taxpayer held an interest in…