Daily Archives: March 2, 2017

CR 2012/53-54 – Final ordinary dividend and special dividend; company merger [37]

The ATO on Wed 18.7.2012, issued the following Class Rulings: CR 2012/53 (Ludowici Limited Scheme of Arrangement and payment of Final Ordinary Dividend and Special Dividend). It applies from 1 July 2011 to 30 June 2013. CR 2012/54 (Scheme of arrangement – merger of Gloucester Coal Limited and Yancoal Australia Limited). It applies from 27…

CR 2012/49-52 – ESS; dental scheme; cadetship payments; capital return [36]

The ATO on Wed 11.7.2012, issued the following Class Rulings: : Royal Bank of Scotland Group plc adjustment to employee share schemes due to sub-division and consolidation of ordinary share capital. It applies from 1 July 2011 to 30 June 2014 and states that an CR 2012/49adjustment made to conditional awards or options issued under…

TD 2012/19 – When non-share equity interest is issued through a PE [35]

This TD, issued Wed 18.7.2012, provides that a non-share equity interest will be taken to have been “issued at or through a permanent establishment” for the purposes of s215-10(1)(c) of the ITAA 1997 where the capital raising is a transaction “of” the business carried on by an authorised deposit-taking institution (ADI) at or through the…

TD 2012/18 – NZ citizens are still ‘temporary residents’ after departing under their ‘special category visa’ as their citizenship still gives them ‘visa’ access [34]

This TD, issued on Wed 11.7.2012, provides the Commissioner’s 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 ITAA 1997.…

Clark v FCT and International All Sports cases – so far as they relate to ‘Calderbank Offers’ – no change to PS LA 2009/9 (Conduct of Litigation) [32]

The ATO on Tue 10.7.2012, issued Decision Impact Statements on Clark v FCT [2010] FCA 415, FCT v Clark (No 2) [2011] FCAFC 140, and International All Sports Ltd & Anor v FCT [2011] FCA 1027. The cases all concerned offers of compromise under Order 23 of the Federal Court Rules (FCR) and Calderbank Offers.…

TR 2012/D5 – Public unit trusts in a stapled group and connected entities [33]

This Draft Ruling, released on Wed 25.7.2012, sets out the Commissioner’s views as to when the interest in a company will be taken to be an interest that is held by a public unit trust that is a connected entity of the company for the purposes of para 974-80(1) of the ITAA 1997. The Draft…

Lake Fox case – Health insurance not a s58M exempt FBT benefit – not in respect of work related medical screening or preventative health care [31]

The ATO Fri 6.7.2012, released a Decision Impact Statement of the decision in AAT Case [2012] AATA 265, Re Lake Fox Limited and FCT. In that case, the AAT held that payments for private health insurance provided to employees by a taxpayer were not exempt benefits as the expenditure was not “in respect of” work-related…

Tandem master parachutist was an ‘employee’ for SGC purposes – entertainment or sport [30]

The ATO on Thur 5.7.2012, released a Decision Impact Statement on the decision in AAT Case [2012] AATA 120, Re General Aviation Maintenance Pty Ltd and FCT. In that case, the AAT affirmed a business was liable to the super guarantee charge (SGC) as the work provided by a tandem master parachutist it paid was…

*Greenhatch case – only discounted capital gain is assessable to the beneficiary [29]

The taxpayer has lodged an application for special leave to appeal to the High Court from the Full Federal Court decision in FCT v Greenhatch [2012] FCAFC 84. The Full Federal Court had unanimously upheld the Commissioner’s appeal and held that the assessable income of a beneficiary presently entitled to a discounted capital gain made…

*Re Yazbek and FCT – Commissioner’s amendment within time under s170(1), item (1)(d) because Taxpayer was a “beneficiary of a [discretionary] trust” despite getting no distribution [28]

In an interlocutory matter, the AAT has held that a taxpayer was at all relevant times a beneficiary of a trust estate and that an amended assessment issued in April 2010 for the 2005 tax year was issued within time – that is, within 4 years pursuant to Item 4 of s 170(1) of the…