The ATO on Wed 12.11.2014, issued the following Class Ruling and Product Ruling: CR 2014/91: Scrip-for-scrip roll-over: acquisition of units in Federation Centres Trust No 2 and Federation Centres Trust No 3 by Federation Centres Trust No 1; and PR 2014/18: AgriWealth 2015 Softwood Timber Project. [LTN 219, 12/11/14]
The ATO on Wed 12.11.2014, released Draft Taxation Determination TD 2014/D19 which states that the “interest” referred to in the phase at the end of s 974-80(2) of the ITAA 1997 is the interest held by the “ultimate recipient” and not the interest held by the “connected entity”. DATE OF EFFECT: When the final Determination is…
The ATO on Wed 12.11.2014, released Draft Taxation Determination TD 2014/D18 which states that the fact that a non-resident entity has decided to invest indirectly in an Australian resident company through one or more interposed entities and the final leg in the chain is a debt interest will not of itself be sufficient to form…
The ATO on Wed 5.11.2014, issued an Addendum to Taxation Ruling TR 2005/7 (The taxation implications of “partnership salary” agreements). It amends the Ruling to include the taxation consequences of a partner’s salary where the partnership is a corporate limited partnership. As a consequence, the ATO has also withdrawn ATO ID 2002/564 (Partner Salary in…
The ATO on Wed 12.11.2014, issued Taxation Ruling TR 2014/6, which provides the Commissioner’s views on the application of s 815-130 of the ITAA 1997 regarding the relevance of actual commercial or financial relations to the identification of conditions relevant to ascertaining whether an entity gets a transfer pricing benefit from the actual conditions, which operate…
The ATO on Wed 26.11.2014, released Decision Impact Statements on the following cases: AAT Case [2013] AATA 920, Re Gleeson and FCT – In this case, the AAT allowed a truck driver’s claims for unsubstantiated food and drink expenses that were claimed on the basis of the Commissioner’s daily rates. The ATO said the decision…
The ATO on Wed 12.11.2014, released Decision Impact Statements on the following cases: ATS Pacific Pty Ltd v FCT [2014] FCAFC 33 – In this case, the Full Federal Court unanimously upheld the Commissioner’s argument that a supply made by an Australian inbound tour operator (ITO) to overseas customers was fully subject to GST. The…
The Commissioner has made application for leave to appeal to the Full Federal Court against the decision of Perram J in FCT v Desalination Technology Pty Limited [2014] FCA 1120. The Federal Court dismissed the Commissioner’s appeal and held that the taxpayer had “incurred” the relevant expenditure for the purposes of claiming an R&D tax offset.…
It is understood the Commissioner has filed applications for special leave to appeal to the High Court against the Full Federal Court decision in FCT v Australian Building Systems Pty Ltd (in liq) & Anor [2014] FCAFC 133. The Full Federal Court had confirmed that s 254(1)(d) of the ITAA 1936 does not require a liquidator…
Husband and wife taxpayers have lodged a notice of appeal to the Federal Court against the decision in AAT Case [2014] AATA 725, Re Scanlon and FCT. The AAT had confirmed that ETPs paid to the taxpayers who owned a private healthcare company were not to be taken into account as liabilities for the purpose…