Author Archives: John Morgan

2012 ATO guidance to employees in various Industries in filling out their Income Tax Returns [62]

• Airline employee 2011-12
• Australian Defence Force members 2011-12
• Building workers 2011-12
• Cleaners 2011-12
• Factory workers 2011-12
• Hairdressers 2011-12
• Hospitality industry employees 2011-12
• Income averaging for special professionals 2011-12
• Journalists 2011-12
• Lawyers 2011-12
• Nurses 2011-12
• Performing artists 2011-12
• Police officers 2011-12
• Real estate employees 2011-12
• Shop assistants 2011-12
• Teachers 2011-12
• Truck drivers 2011-12

[LTN 124, 29/6]

*ATO discontinues its cash sales benchmarks [61]

The ATO has advised that it has decided to discontinue its cash sales benchmarks. In April 2011, the ATO temporarily withdrew the benchmarks from its list of Small business benchmarks due to issues with the data. It said it had decided to discontinue them as it is unable to obtain consistent data that allows for…

Extending CGT exemption for compensation payments: ATO administrative treatment [60]

The ATO has released details of its administrative treatment regarding the proposed extension of the CGT exemption to certain compensation payments and insurance policies. The proposal was announced in the 2012-13 Budget. The ATO said it will accept tax returns as lodged during the period up until the enactment of the legislation and past assessments…

TA 2012/3 – ATO warns about financial products that exploit franking credits [59]

The ATO on Thur 14.6.2012, issued Taxpayer Alert TA 2012/3 warning taxpayers of certain highly complex structured investment products which seek to transfer franking credits. It said its view on the operation of the imputation system and s 177EA of the ITAA 1936 is set out in Taxation Ruling TR 2009/3. The ATO said the…

*Recovery of income tax and GST liabilities of a trust where there has been a change of trustee [58]

The ATO on Thur 28.6.2012, released Practice Statement Law Administration PS LA 2012/2 (To advise tax officers of the approach to be taken in the raising and recovery of income tax and GST liabilities of a trust where there is a change of trustee during or following an income year or a tax period). It…

*ATO ID 2002/380 withdrawn – deductibility of GIC [57]

The ATO has, with effect from Fri 1.6.2012, withdrawn ATO ID 2002/380 (Deductibility of GIC – when incurred or when paid).

[LTN 105, 1/6]

Class Rulings 2012/41-45 – Demerger; return of capital; early retirement; income of specialists [56]

The ATO on Wed 27.6.2012 released the following Class Rulings: CR 2012/41: Demerger of Phillips 66 by ConocoPhillips Company. It applies from 1 July 2011 to 30 June 2012. The Ruling broadly states that shareholders who choose demerger rollover relief may disregard any capital gain made when CGT event G1 happens to their shares under…

CR 2012/38-40 – Incentive plan; executive share plan; ex gratia payment [55]

The ATO on Wed 12.6.2012, issued the following Class Rulings: : Merger of Xstrata plc and Glencore International plc – Xstrata plc Long Term Incentive Plan. It applies from 1 July 2011 to 30 June 2013. The Ruling broadly states that any capital gains or losses that arise as a result of the exchange of…

*TD 2012/D5 – Proportionate approach to the assessment of trust net income [54]

This Draft TD, issued on Wed 13.6.2012, provides the Commissioner’s preliminary views on whether a beneficiary’s share of net income is worked out by reference to the proportion of the income of the trust estate to which the beneficiary is presently entitled. Broadly, the Determination states that to determine the share of net income of…

*TD 2012/D4 – No CGT event E1 or E2 if trust deed changed under a valid amending power, unless trust terminates [53]

This Draft Determination, released Wed 13.6.2012, provides that CGT event E1 or E2 of the ITAA 1997 does not happen if, pursuant to a valid exercise of a power contained within the trust’s constituent document, the terms of the trust are changed. However, the Draft also provides that CGT event E1 or E2 will happen…