Draft PS LA 3582 – Commissioner’s discretion to retain refunds (of any tax) under s8AAZLGA of the TAA [40]

The ATO on Thur 5.7.2012, released Draft Practice Statement PS LA 3582 (Exercise of the Commissioner’s discretion under s 8AAZLGA of the TAA to retain an amount that would otherwise be refunded). It provides guidance to tax officers on when it is reasonable to exercise the Commissioner’s discretion to delay a refund amount pending verification…

CR 2012/55 – University stipend of veterinary studies is ordinary income, but exempt [39]

The ATO Wed 25.7.2012, issued Class Ruling CR 2012/55 (Master of Veterinary Studies/Master of Veterinary Clinical Studies (University of Sydney)). It applies from 1 July 2012. Broadly, the Ruling states the fortnightly stipend payments to the students undertaking the studies would be ordinary income under s 6-5(1) of the ITAA 1997, however, these payments are…

PR 2012/25 – Professional sports person’s Temporary Total Disability Insurance proceeds included in his ordinary income [38]

The ATO on Wed 18.7.2012, issued Product Ruling PR 2012/25 (Beazley Sports Consortium 9476 – Professional Sports Person Personal Accident & Illness Insurance). The Ruling provides that a Temporary Total Disablement Benefit received by the Insured in the event of their Temporary Total Disablement will be included in the assessable income of the Insured under…

TD 2012/18 – NZ citizens are still ‘temporary residents’ after departing under their ‘special category visa’ as their citizenship still gives them ‘visa’ access [34]

This TD, issued on Wed 11.7.2012, provides the Commissioner’s views as to whether a New Zealand citizen who was present in Australia on a Special Category Visa but departs Australia, still holds a temporary visa for the purposes of para (a) of the definition of “temporary resident” contained in s 995-1(1) of the ITAA 1997.…

Clark v FCT and International All Sports cases – so far as they relate to ‘Calderbank Offers’ – no change to PS LA 2009/9 (Conduct of Litigation) [32]

The ATO on Tue 10.7.2012, issued Decision Impact Statements on Clark v FCT [2010] FCA 415, FCT v Clark (No 2) [2011] FCAFC 140, and International All Sports Ltd & Anor v FCT [2011] FCA 1027. The cases all concerned offers of compromise under Order 23 of the Federal Court Rules (FCR) and Calderbank Offers.…

Lake Fox case – Health insurance not a s58M exempt FBT benefit – not in respect of work related medical screening or preventative health care [31]

The ATO Fri 6.7.2012, released a Decision Impact Statement of the decision in AAT Case [2012] AATA 265, Re Lake Fox Limited and FCT. In that case, the AAT held that payments for private health insurance provided to employees by a taxpayer were not exempt benefits as the expenditure was not “in respect of” work-related…