Daily Archives: August 20, 2017

Chevron withdraws it’s High Court appeal – transfer pricing case and new principles settled in the Commissioner’s favour – finality welcomed by Government

The taxpayer has discontinued its application for special leave to appeal to the High Court from the Full Federal Court decision in Chevron Australia Holdings Pty Ltd v FCT [2017] FCAFC 62. This was a transfer pricing dispute where the ATO had issued amended assessments under Div 13 of the ITAA 1936 (the old transfer pricing…

Medicare Levy bills – to increase rate from 2.0% to 2.5% as announced in the May 2017 Federal Budget with consequential rate adjustments to other taxes (e.g. FBT)

A package of 10 Bills was introduced in the House of Reps this morning [Thur 17.8.2016] to implement the Government’s 2017-18 Budget announcement to increase the Medicare levy by 0.5% to 2.5% from 1 July 2019 in order to help finance the National Disability Insurance Scheme (NDIS). Other rates that are linked to the top personal tax…

CR 2017/54 – Heemskirk: an Australian listed company that produces minerals in Canada acquired by Canadian Company: Northern Silica Corporation – scrip-for-scrip roll-over available

On Wed 16.8.17, the Commissioner issued the following Class Ruling: CR 2017/54 – scrip-for-scrip roll over: acquisition of Heemskirk Consolidated Limited by Northern Silica Corporation. It provides that participating shareholders who made a capital gain from disposing of their shares in accordance with the scheme can choose scrip-for-scrip roll-over. However, scrip-for-scrip roll over cannot be…

CR 2017/53 – Batlow Fruit Company Pty Ltd: a cooperative demutualised to take an injection of capital from a non-member – old membership interests can be rolled over and the new shares were not a dividend (deemed or otherwise)

On Wed 16.8.2017, the Commissioner issued the following Class Ruling. CR 2017/53 – Batlow Fruit Company Pty Ltd: converted to a company registered under the Corporations Act 2001. It provides that members of Batlow Fruit Company Pty Ltd can choose the conversion roll-over under s124-520 of the ITAA 1997 (which is about a change of incorporation…