Monthly Archives: February 2017

CR 2014/41-42 – Return of capital; CGT scrip-for-scrip [43]

The ATO on Wed 7.5.2014, issued the following Class Rulings: CR 2014/41: Aviva Corporation Limited: return of capital. It applies from 1 July 2013 to 30 June 2014. Broadly, the Ruling states that the return of capital to shareholders is not a dividend as defined in s 6(1) of the ITAA 1936. CR 2014/42: Scrip-for-scrip: exchange of shares in Envestra…

*TD 2014/12 – Accounting standards necessary for financial reports to qualify for TOFA [42]

This Determination, issued on Wed 28.5.2014, outlines the accounting principles that need to be followed in order for a financial report to satisfy Div 230 of the ITAA 1997 (Taxation of Financial Arrangements or ‘TOFA’ provisions). It states that a financial report must be prepared in accordance with those accounting standards and authoritative pronouncements of the…

*TD 2014/11 – FBT: car parking threshold for 2014-15 year is up from $8.03 to $8.26 [41]

The ATO on Wed 14.5.2014, released Taxation Determination TD 2014/11. It specifies that, for the purposes of s 39A of the FBTAA, the car-parking threshold for the FBT year that commenced on 1 April 2014 is $8.26 (up from $8.03 that applied in the previous year). [LTN 91, 14/5/14]

*TR 2014/2 – Taxable income of non-resident shipowner/charterer [40]

This Ruling, issued on Wed 28.5.2014, clarifies the circumstances in which the ships and aircraft article of Australia’s tax treaties allocates Australia a right to tax amounts falling within s 129 of the ITAA 1936. It applies to treaty partner residents who carry on an enterprise and derive s 129 income in respect of carriage of passengers,…

*Swanbat case – GST refund paid outside 4 years can’t be recovered by an assessment under s105-55 of the TAA1 [39]

The ATO has released a Decision Impact Statement on the AAT decision in AAT Case [2013] AATA 891, Re Swanbat Pty Ltd and FCT. In that case, the AAT had set aside the Commissioner’s amended assessment in relation to a BAS for the period 1 April 2008 to 30 June 2008 and held that the taxpayer’s net amount for…

*FCT v Ludekens case – Respondents held to be “promoters” of a tax exploitation scheme [38]

The ATO on Wed 7.5.2014, issued a Decision Impact Statement on the Full Federal Court’s decision in FCT v Ludekens [2013] FCAFC 100. The Full Court had unanimously allowed the Commissioner’s appeal and held that 2 persons were “scheme promoters” in terms of Div 290 of the TAA and therefore were liable for civil penalties. The…

*Rigoli v FCT – Burden of proof not discharged by conceding the Commr’s estimate of income, save for depreciation issues – returned to AAT [37]

The ATO on Fri 2.5.2014, issued a Decision Impact Statement on the Full Federal Court’s decision in Rigoli v FCT [2014] FCAFC 29. In that decision, the Court dismissed the taxpayer’s appeal concerning default assessments that had been issued to him under s 167 of the ITAA 1936 for the 1994 to 2001 income years. The…

*ATS Pacific Pty Ltd v FCT – GST on ‘arranging’ supplies to non-resident travel agents – incidental to tourism supplies consumed in Australia [36]

The ATO on Fri 2.5.2014, released a new Interim Decision Impact Statement on the Full Federal Court decision in ATS Pacific Pty Ltd v FCT [2014] FCAFC 33. In that case, the Full Federal Court unanimously upheld the Commissioner’s argument that a supply made by an Australian inbound tour operator to overseas customers was fully…

*Re XVQY and FCT – Plumbers found not to be employees for super guarantee purposes [35]

A taxpayer has been successful before the AAT in arguing that workers engaged by it were not employees for the purposes of the Superannuation Guarantee (Administration) Act 1992 (SGAA). The Commissioner had disallowed the taxpayer’s objection to assessments of a superannuation guarantee charge in respect of the taxpayer’s employment of certain workers in the quarterly…

*Re Qantas Airways Ltd and FCT – FBT: parking provided to staff was subject to tax as customers had to pay at ‘commercial parking stations’ as defined [34]

The AAT has held that car-parking facilities provided by a taxpayer (an airline) to its employees in certain locations were subject to FBT for the 2007 to 2010 FBT years. The taxpayer and its associates provided car parking facilities to their employees whose primary places of work were at or near airports in major capital…