The ATO on Thur 23.1.2014, released Decision Impact Statements on the following cases:

  • FCT v Resource Capital Fund IV LP [2013] FCAFC 118 – The Full Federal Court had unanimously allowed the Commissioner’s appeal and held that s 255 notices requiring a company to retain out of Canadian currency sufficient funds to meet 2 taxpayers’ Australian income tax liabilities were effective. The ATO said the decision was significant in that it confirmed the ATO view that the reference to “money” in subs 255(1) (b) is not confined to Australian currency, but extends to foreign currency.
  • AAT Case [2013] AATA 845, Re Stewart and FCT – The AAT found that a taxpayer was not assessable on stapled securities acquired by him in connection with his employer’s Senior Executive Option Plan. The ATO said it accepted that, on the facts as found, it was open for the AAT to find that the value of the Asciano stapled securities was not assessable to the taxpayer in the 2007 year.
  • AAT Case [2013] AATA 802, Re Snugfit Australia Pty Ltd and FCT – The AAT set aside the Commissioner’s decision and held that a supply of a sleep positioning system is GST-free under s 38-45(1) of the GST Act as it was a medical aid. The ATO considers that the Tribunal’s decision that the product in question modifies a mattress turned solely upon the facts of the case, and it considers that the decision does not have any broader impact on the meaning of the term “modification” in other contexts. The ATO said it is reviewing ATO Interpretative Decision 2002/525 about the GST treatment of contoured pillows to determine whether it ought to be revised or withdrawn in light of the Tribunal’s decision.

[LTN 15, 23/1/14]