Monthly Archives: March 2017

CR 2012/84 and 85 – Employer contributions to redundancy trust; early retirement scheme (53)

The Tax Office on Wed 3.10.2012, released the following Class Rulings: : FBT: employer contributions to the Class Ruling CR 2012/84Australian Construction Industry Redundancy Trust (ACIRT). The ATO says contributions made by employers to ACIRT under the terms of the Building and Construction General On-site Award 2010 will be exempt benefits under s 58PA of…

TD 2012/D10 – Interest deductible on full recourse loan used to fund pre-paid interest on capital protected borrowing (52)

This Draft TD, issued Wed 31.10.2012, says where a taxpayer enters into a limited recourse loan (investment loan) which is made under a capital protected borrowing for the purposes of Div 247 of the ITAA 1997 and a full recourse loan (interest loan) is entered into solely to fund an amount of prepaid interest on…

*TD 2012/D9 – Ordinary income from allowing wind farming on a farm, is not and “assessable primary production income” for Div 392 averaging purposes (51)

This Draft TD, issued on Wed 24.10.2012, says ordinary income derived by an individual from allowing wind farming infrastructure to be constructed, operated and accessed on freehold land that they own and use in carrying on a primary production business does not constitute “assessable primary production income” of that individual for the purposes of Div…

TD 2012/D8 – Reasonable food and drink amounts for LAFHA recipients (50)

This Draft TD, released late on 28 September 2012, sets out the amounts the Commissioner considers reasonable under s 31G of the FBT Assessment Act for food and drink expenses incurred by employees receiving a living-away-from-home allowance (LAFHA) fringe benefit in the period 1 April 2013 to 31 March 2014. In addition, a transitional arrangement…

*TD 2012/22 – ‘Proportionate approach’ to the calculation of a beneficiary’s assessable income from a trust (49)

This TD, issued on Wed 24.10.2012, provides the Commissioner’s views on whether a beneficiary’s share of net income is worked out by reference to the proportion of the income of the trust estate to which the beneficiary is presently entitled. The TD states that to determine the share of net income of a trust estate…

*TD 2012/21 – No CGT event E1 or E2 if trust changed under a valid power unless trust terminates (48)

This TD, released Wed 24.10.2012, provides that CGT event E1 or E2 in the ITAA 1997 does not happen if the terms of a trust are changed pursuant to a valid exercise of a power contained within the trust’s constituent document, or varied with the approval of a relevant court unless either: (a) the change…

LVR (WA) Pty Ltd case – ATO Decision Impact Statement – AAT copied ATO’s submissions without attribution (47)

The ATO on Fri 12.10.2012, issued a Decision Impact Statement on the decision of the Full Federal Court in LVR (WA) Pty Ltd & Anor v AAT and FCT [2012] FCAFC 90. In that case, the Full Court allowed the taxpayers’ appeal from a 2011 Federal Court decision concerning their applications for review of the…

Re Boyn and FCT – Taxpayer appeals ETP decision to Federal Court (46)

The Commissioner has lodged a notice of appeal to the Federal Court against the decision in AAT Case [2012] AATA 660,. In that case, the AAT held that the Commissioner had incorrectly calculated the tax payable on the taxable component of an employment termination payment (ETP) by not allocating deductions and prior year losses in…

SCCASP Holdings as trustee for the H&R Super Fund v FCT – Trustee appeals decision to treat trust distribution as ‘special income’ (45)

The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Logan J in SCCASP Holdings as trustee for the H&R Super Fund v FCT [2012] FCA 1052. The Federal Court had held that a resolution to distribute a $14m capital gain from a family trust was “special income”…

*Fowler v FCT – Taxpayer appeals from Federal Court decision that he acquired employee share scheme shares about 2 months later than he contended (44)

The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Kenny J in Fowler v FCT [2012] FCA 1040. The Federal Court had 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…