ATO ID 2013/43 – ‘Living Away From Home Allowance’ (LAFHA) requirements for ‘Fly in Fly Out’ (FIFO) and ‘Drive in Drive Out’ (DIDO) – must work 7th day [58]

Tax Month - August 2013

The ATO on Fri 2.8.2013, released ATO ID 2013/43 (FBT: living-away-from-home allowance fringe benefits: fly-in fly-out and drive-in drive-out requirements). According to this ID, the requirements of s 31E(a)(i) of the FBTAA will not be satisfied where an employee during the period of their employment tenure works for 5-and-a-half days and remains on call on the…

PR 2013/15 – Tax consequences of the Macquarie Geared Equities Investment plus [57]

Tax Month - August 2013

The ATO on Wed 14.8.2013, issued Product Ruling PR 2013/15 (Tax consequences of investing in equities using the Macquarie Geared Equities Investment plus (2013 Product Brochure)). It applies to entities that enter into the scheme from Wed 14.8.2013, until 30 June 2016. Broadly, the Ruling states that an amount equal to the expense incurred for interest on…

CR 2013/61-66 – Simplifying stapled structure; deductions; assessable income; FBT log book [56]

Tax Month - August 2013

The ATO on Wed 7.8.2013, issued the following Class Rulings: CR 2013/61: Scrip-for-scrip roll-over: acquisition of Diversified Utility and Energy Trust No 3 by Diversified Utility and Energy Trust No 2. It applies from 1 July 2013 to 30 June 2014. Broadly, the Ruling states that where a holder makes a capital gain on the disposal of their units,…

TR 2013/D4 – PRRT: meaning of the phrase ‘involved in or in connection with petroleum exploration’ [53]

Tax Month - August 2013

The ATO on Wed 21.8.2013, released Draft Taxation Ruling TR 2013/D4, which considers the meaning of the phrase “…involved in or in connection with exploration for petroleum …” in para 37(1)(a) of the Petroleum Resource Rent Tax Assessment Act 1987 (PRRT Act). Broadly, the Draft outlines the following: the phrase “exploration for petroleum” in s 37 of the…

Esso Australia Resources Pty Ltd v FCT – Full Federal Court upheld the Commissioner’s views about ‘taxing point’ and the ‘take or pay’ issue [51]

Tax Month - August 2013

On 27.8.13 the Commissioner issued a Decision Impact Statement in relation to Esso Australia Resources Pty Ltd v FCT [2011] FCAFC 154. In that case, the Full Federal Court dismissed the taxpayers’ appeals and the Commissioner’s cross-appeal in a matter concerning the liability of 2 companies (BHP Billiton Petroleum (Bass Strait) Pty Ltd and Esso…

Fowler v FCT – Full Federal Court found that the Div 13A acquisition date was not the date of the contract of employment but later when the shares were worth more [50]

Tax Month - August 2013

On 27.8.13 the Commissioner issued a Decision Impact Statement in relation to Fowler v FCT [2013] FCAFC 69. In that case, the Full Federal Court unanimously dismissed a taxpayer’s appeal, and held that for the purposes of the former ITAA 1936 employee share scheme (ESS) provisions (Div 13A), a taxpayer acquired a right with respect to…

McWilliam case – relevant Div 13A date of acquisition was date of contract of employment and there was no shortfall [49]

Tax Month - August 2013

The ATO on Thur 22.8.2013, released a Decision Impact Statement on the Full Federal Court’s decision in FCT v McWilliam [2012] FCAFC 105. In that case, the Full Federal Court dismissed the Commissioner’s appeal against an earlier AAT decision in AAT Case [2012] AATA 142 that had held the taxpayer had applied the correct acquisition…