The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 4th quarter of the 2011-12 financial year (ie 1 April 2012 – 30 June 2012) are as follows: GIC annual rate is 11.37%; GIC daily compounding rate is 0.03106557%; SIC annual rate is 7.37%; SIC daily…
The ATO has advised that eligible tax agents will be provided with an additional 4 week lodgment deferral for the 2012 FBT return to 25 June 2012. It says the deferral only applies to lodgment and not payment (any payments required are still due by 28 May 2012). The ATO says the deferral is automatic,…
The ATO on Wed 21.3.2012, issued Taxpayer Alert TA 2012/1 warning taxpayers of arrangements under which Australian resident taxpayers do not correctly include income and other taxable amounts from foreign sources in their assessable income for Australian tax purposes. The arrangements involve Australian resident taxpayers deriving foreign sourced income that is either received in Australia…
The ATO on Wed 28.3.2012, issued the following Class Rulings: CR 2012/18: Vermilion Australia Limited Partnership – changes to awards under the Australian Award Incentive Plan. It applies from 2 September 2010 to 30 June 2011. The Ruling broadly states that changes to the incentive plan did not cause the ending of the ownership of…
The ATO on Wed 14.3.2012, issued the following Class Rulings: CR 2012/15: Return of capital – UXC Limited. It applies from 1 July 2011 to 30 June 2012. The Ruling broadly states that the return of capital to UXC shareholders is not a dividend as defined in s 6(1) of the ITAA 1936. CR 2012/16:…
This Draft TD, issued on Wed 28.3.2012, provides the Commissioner’s preliminary views as to whether a New Zealand citizen who was present in Australia on a Special Category Visa but departs Australia, still holds a temporary visa for the purposes of para (a) of the definition of “temporary resident” contained in s 995-1(1) of the…
The Tax Office on Wed 28.3.2012, released 5 determinations dealing with FBT rates, thresholds, etc for the 2012-13 FBT year (ie the FBT year commencing on 1 April 2012). TD 2012/3: the record-keeping exemption threshold is $7,642. TD 2012/4: the indexation factors for valuing non-remote housing are: NSW – 1.060; Vic – 1.040; Qld –…
This Determination, released on Wed 7.3.2012, states that Pt IVA of the ITAA 1936 can apply to deny a deduction for some, or all, of the interest expense incurred in respect of an “investment loan interest payment arrangement” of the type described in the Determination. The Determination was previously released as Draft TD 2011/D8, and…
This Draft TR, issued today [Wed 28.3.2012], provides the Commissioner’s preliminary views of the meaning of “income of the trust estate” in Div 6 of Pt III of the ITAA 1936 and related provisions. The ATO said there is no set or static meaning of the expression “income of the trust estate” as used in…
The ATO on Mon 19.3.2012, released a Decision Impact Statement on the Full Federal Court’s decision in Leighton v FCT [2011] FCAFC 96. In that case, the Full Federal Court held that a non-resident individual was not liable to be assessed under the former s 98(3) of the ITAA 1936 in relation to trading activities…