This Ruling, released on Wed 27.6.2012, is about the taxation of dividends paid in compliance with s 254T of the Corporations Act 2001 from 28 June 2010. The Corporations Amendment (Corporate Reporting Reform) Act 2010 changed the prohibitions in s 254T of the Corporations Act governing the circumstances in which a company can pay a…
This Ruling, released on Wed 20.6.2012, discusses the operation of s 230-55(4) of the ITAA 1997 in determining whether a number of rights and/or obligations are themselves an arrangement or are 2 or more separate arrangements for the purposes of Div 230. Broadly, the Ruling states that whether a number of rights and/or obligations are…
This Ruling, released on Wed 12.6.2012, provides guidance on the nexus test for hypothetical losses relevant to the application of s 230-30(2) of the ITAA 1997. It explains how that subsection applies to a gain made from a financial arrangement. Where this provision applies, a gain is to some extent exempt income or non-assessable non-exempt…
This Ruling, released from Wed 27.6.2012, applies from 1 July 2012, and explains the methodology used by the Commissioner in making determinations of the effective life of depreciating assets under s 40-100 of the ITAA 1997. The Ruling replaces Taxation Ruling TR 2011/2, which is withdrawn on and from 1 July 2012. To the extent…
The ATO on Fri 1.6.2012, released a Decision Impact Statement on the AAT’s decision in AAT Case [2012] AATA 208, Re Mehta and FCT. In that case, the AAT held the taxpayer was a share trader for the year ended 30 June 2009 as it was satisfied that the taxpayer’s activities amounted to carrying on…
The taxpayer has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in Esso Australia Resources Pty Ltd v FCT [2012] FCAFC 5. The Full Federal Court had unanimously overturned a decision at first instance and held that Esso Australia Resources Pty Ltd was not entitled…
The AAT has dismissed the application of a taxpayer who sought a review of a deemed decision of the Commissioner to disallow an objection to a deemed decision to deny a private ruling. The taxpayer was also unsuccessful in seeking to have any finding made in its favour to take effect retrospectively to counter the…
In a somewhat unusual case, the AAT has refused a taxpayer’s application for the issue of summonses to 3 ATO employees so the taxpayer could examine them in support of its claim to be carrying on a business and therefore be entitled to input tax credits. The substantive application involves disputed entitlements to input tax…
The AAT has reduced a tax shortfall penalty from 50% to 25% after finding that a taxpayer and its tax agent were not “reckless” in claiming $3.1m in deductions for a boat owned by a related trust. The taxpayer is the corporate trustee of a trust (controlled by Mr X) that is the ultimate beneficiary…
The AAT has ruled that amended assessments issued to the father and son beneficiaries of a family trust were excessive. The amended assessments increased the distributions to the beneficiaries in the years in question by reference to the denial of deductions of some $1m for payments made to an employee entitlement fund by a fuel…