The ATO on Wed 12.11.2014, released Decision Impact Statements on the following cases:
- ATS Pacific Pty Ltd v FCT [2014] FCAFC 33 – In this case, the Full Federal Court unanimously upheld the Commissioner’s argument that a supply made by an Australian inbound tour operator (ITO) to overseas customers was fully subject to GST. The High Court refused the taxpayer special leave to appeal the Full Federal Court’s decision. The ATO said it will update GST Rulings GSTR 2001/8, GSTR 2005/6, GSTR 2006/9, and GST Determination GSTD 2004/3 to include references to the Court’s decision. It also said that the Commissioner requests that all ITOs that have transacted as principal and have an outstanding amount due to the ATO contact the ATO within 28 days of the publication of the DIS to discuss payment of the amount owed.
- Re Retirement Village Operator and FCT [2013] AATA 887, – In this case, the AAT ruled that a taxpayer that owns and manages a number of retirement villages was entitled to a deduction for payments it was contractually required to make to “outgoing residents”. The AAT concluded that such payments were properly characterised as an ordinary part of carrying on the business and were not capital or of a capital nature and therefore deductible under s 8-1 of the ITAA 1997. The ATO said it will issue an addendum to Taxation Ruling TR 2002/14 to reflect the Tribunal’s decision. It said taxpayers may request the Commissioner to amend an assessment subject to s 170 of the ITAA 1936.
- PTTEP Australasia (Ashmore Cartier) Pty Ltd v FCT [2014] FCAFC 71 – In this case, the Full Federal Court allowed a taxpayer’s appeal in a matter concerning the calculation of the taxpayer’s taxable profit under s 22 of Petroleum Resource Rent Tax Assessment Act 1987. The ATO said it accepts the Full Court’s reasoning and will seek to administer the law in a consistent manner in future cases. It said whether future cases are analogous to the case will depend on a careful analysis of the contractual arrangements in question.
[LTN 219, 12/11/14]