The ATO on Thur 19.9.2013, released a Decision Impact Statement on the Full Federal Court’s decision in FCT v Messenger Press Proprietary Limited [2013] FCAFC 77.
In that case, the Full Federal Court unanimously dismissed the Commissioner’s appeal and confirmed that some 20 News Corp group companies were entitled to deductions for over $2bn in foreign exchange losses from the 2001 and 2002 income years under Div 3B of the ITAA 1936 (as it then applied) that arose from the global restructure of the group in the early 1990s. The Commissioner did not appeal the decision.
Broadly, the ATO said a number of Interpretative Decisions (including ATO IDs 2003/126, 2006/64, 2006/124 and 2006/291) and references to Div 3B in Taxation Determination TD 2006/57 will be withdrawn. It said since Div 3B was repealed in 2003, the decision will have limited impact on other taxpayers. The ATO also encourages any affected taxpayers to contact it before 14 November 2013 regarding the timing and implications of the withdrawal of administrative practice. ATO contact: Ilana Millar – Tel: (03) 9285 1179; Fax: (03) 8632 4036; Email: liana.millar@ato.gov.au.
[LTN 182, 19/9/13]