The ATO on Thur 14.6.2012, issued Taxpayer Alert TA 2012/3 warning taxpayers of certain highly complex structured investment products which seek to transfer franking credits. It said its view on the operation of the imputation system and s 177EA of the ITAA 1936 is set out in Taxation Ruling TR 2009/3. The ATO said the…
The ATO on Thur 28.6.2012, released Practice Statement Law Administration PS LA 2012/2 (To advise tax officers of the approach to be taken in the raising and recovery of income tax and GST liabilities of a trust where there is a change of trustee during or following an income year or a tax period). It…
The ATO has, with effect from Fri 1.6.2012, withdrawn ATO ID 2002/380 (Deductibility of GIC – when incurred or when paid). [LTN 105, 1/6]
The ATO on Wed 27.6.2012 released the following Class Rulings: CR 2012/41: Demerger of Phillips 66 by ConocoPhillips Company. It applies from 1 July 2011 to 30 June 2012. The Ruling broadly states that shareholders who choose demerger rollover relief may disregard any capital gain made when CGT event G1 happens to their shares under…
The ATO on Wed 12.6.2012, issued the following Class Rulings: : Merger of Xstrata plc and Glencore International plc – Xstrata plc Long Term Incentive Plan. It applies from 1 July 2011 to 30 June 2013. The Ruling broadly states that any capital gains or losses that arise as a result of the exchange of…
This Draft TD, issued on Wed 13.6.2012, provides the Commissioner’s preliminary 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. Broadly, the Determination states that to determine the share of net income of…
This Draft Determination, released Wed 13.6.2012, provides that CGT event E1 or E2 of the ITAA 1997 does not happen if, pursuant to a valid exercise of a power contained within the trust’s constituent document, the terms of the trust are changed. However, the Draft also provides that CGT event E1 or E2 will happen…
This Determination, released on Wed 27.6.2012, sets out the amounts the Commissioner considers are reasonable for the 2012-13 income year in relation to claims made for: overtime meal allowance expenses – the amount is $27.10; domestic travel allowance expenses. The reasonable amounts are given for: (i) accommodation at daily rates (for domestic travel only); (ii)…
Taxation Determination TD 2012/16, released on Wed 27.6.2012, states that the car limit for the 2012-13 financial year is $57,466. Luxury Car Tax Determination LCTD 2012/1, also released on Wed 27.6.2012, states that the luxury car tax threshold for the 2012-13 financial year is $59,133. The Determination also states that the fuel-efficient car limit for…
This TD released on Wed 27.6.2012, states that, for the income year that commenced on 1 July 2011, the benchmark interest rate for the purposes of ss 109N and 109E of the ITAA 1936 is 7.05% (down from 7.80% per annum for 2011-12). [LTN 122, 27/6]