*GST: no creditable acquisition made, so input tax credits refused [37]

The AAT has affirmed a decision of the Commissioner to refuse a taxpayer’s claim for input tax credits (ITCs) claimed for the relevant period, but reduced the penalty imposed on the shortfall amount. The taxpayer conducted a product development and commercialisation business. It contended that, pursuant to 2 agreements, it purchased intellectual property and debtors…

Rio Tinto signs tax compliance arrangement with ATO [35]

Thomson Reuters has confirmed with Rio Tinto that the company has entered into a compliance arrangement with the ATO which covers its corporate income tax obligations. Rio Tinto said the agreement signed on Wed 18.9.2013, strengthens its commitment to strong governance standards in taxation and is consistent with its commitment to transparency. “Australia’s leading companies…

PR 2013/16 – Interest will be deductible on investment loan to purchase Macquarie Units – less cost of capital protection on loan [33]

The ATO on Wed 18.9.2013, released Product Ruling PR 2013/16 (Deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2016). It applies prospectively from Wed 18.9.2013. Among other things, the Ruling states that an amount equal to the interest charged on the investment loan, reduced…

CR 2013/71 – University Dairy training scholarship receipt are exempt from tax [32]

The ATO on Wed 18.9.2013, released Class Ruling CR 2013/71 (University of Melbourne Dairy Resident Training Program scholarship). It applies from 1 January 2013. Broadly, the Ruling states that the stipend payments made by the University would be assessable income to the student under s 6-5 of the ITAA 1997, however, the payments are exempt from tax under…