TD 2012/13 – TOFA: tax treatment under a hedging financial arrangement, when a ‘cessation event’ happens is the gain or loss over the specified years [49]

This TD, released on Wed 6.6.2012, provides clarification on the appropriate tax treatment of the gain/loss from a hedging financial arrangement when a cessation event happens to the arrangement. The TD says that a gain or loss resulting from the expiration, sale, termination or exercise (collectively “Cessation Events”) of a hedging financial arrangement to which…

*TD 2012/12 – Division 7A can still operate via the interposed entity rules in Subdiv E, even though the exclusion rules in Subdiv D apply [48]

This TD, released on Wed 6.6.2012, states that the rules in Subdiv D of Div 7A of Pt III of the ITAA 1936 (which exclude certain payments or loans from being treated as dividends under Subdiv B) do not necessarily affect the circumstances in which a deemed payment or notional loan arises under Subdiv E.…

*TD 2012/11 – CGT streaming – beneficiaries can “reasonably expect to receive net financial benefit” if the capital gain is realised [47]

This Determination, released on Wed 6.6 2012, expresses the ATO view that it is possible (depending on the circumstances) for a beneficiary of a trust estate to be “reasonably expected” to receive a share of the net financial benefit referable to a capital gain for the purposes of s 115-228(1)(a) of the ITAA 1997 (ie…