CR 2012/26 – Scrip-for-scrip rollover – merger of Adamus Resources Limited and Endeavour Mining Corporation [R7]

The ATO Tues 24.4.2012, issued Class Ruling CR 2012/26 (Scrip-for-scrip: merger of Adamus Resources Limited and Endeavour Mining Corporation). It applies from 1 July 2011 to 30 June 2012. The Ruling broadly states that eligible shareholders who make a capital gain from the disposal of Adamus shares to Endeavour is eligible to choose scrip-for-scrip rollover…

CR 2012/25 – Issue of convertible preference shares by Insurance Australia Group Ltd are ‘debt interests’ [R6]

The ATO Wed 18.4.2012, issued Class Ruling CR 2012/25 (Insurance Australia Group Limited – issue of convertible preference shares). It applies from 1 May 2012 to 30 June 2019. The Ruling broadly states that the dividends paid to shareholders of convertible preferences shares meets the definition of a dividend in s 6(1) of the ITAA…

*TD 2012/2 – time at which the Shortfall Interest Charge (SIC) and General Interest Charge (GIC) is ‘incurred’ for s25-5 deduction purposes [R3]

This TD, issued Wed 4.4.2012, provides the Commissioner’s view on when is a shortfall interest charge (SIC) is incurred for the purposes of para 25-5(1)(c) of the ITAA 1997. The Determination broadly states that a SIC is incurred in the year of income the Commissioner gives taxpayers a notice of amended assessment. It says this…

*TR 2012/D2 – Assessability of legal costs in termination of employment disputes: are not assessable as ETP’s but are an assessable recoupment of deductible legal costs [R1]

This Draft TR, issued Wed 11.4.2012, provides the Commissioner’s preliminary views on whether or not amounts received in respect of legal costs incurred in disputes concerning termination of employment can be included in assessable income. The Draft indicates that an amount received in relation to a dispute concerning the termination of employment is not an…

*MT 2012/1-2 – Tax and GST consequences re transfer of farm-out arrangements [R2]

These Rulings, issued on Wed 18.4.2012, set out the Commissioner’s views on the application of the income tax and GST provisions upon entry into specified farm-out arrangements. MT 2012/1 concerns immediate transfer farm-out arrangements and MT 2012/2 deals with deferred transfer farm-out arrangements. Under an immediate transfer farm-out arrangement, an obligation to transfer a percentage…

*ANZ v Konza – Taxpayer appeals the decision that a s264 notice was effective to get details of their Vanuatu customers from an Australian computer [C14]

The taxpayer has appealed to the Full Federal Court against the decision of Lander J in Australia and New Zealand Banking Group Limited v Konza & Anor [2012] FCA 196. The Federal Court had held that notices issued by the ATO under s 264 of the ITAA 1936 to the Australia and New Zealand Banking…

*Legal Services Commissioner (Vic) v Stirling – Barrister’s practising certificate suspended for 3 years for tax offences stretching over 10 years [C12]

The Victorian Civil and Administrative Tribunal has handed down a 3-year suspension of a barrister’s practising certificate following a finding that he was guilty of professional misconduct within the meaning of s 4.4.3(1)(b) of the Legal Profession Act2004 (Vic) for engaging in conduct that justified a finding that he was not a fit and proper…