Re The Hotel Apartment Purchaser and FCT – GST: purchasers acquired apartments subject to lease to hotel operator GST-free in 2006 & 2008 but had increasing adjustment in 2011 [64]

The AAT has affirmed the Commissioner’s decision that a taxpayer had an increasing adjustment under Div 135 of the GST Act in relation to 2 apartments purchased in a hotel complex. The taxpayer, a husband and wife partnership, purchased 2 apartments in the complex. The first purchase took place on 1 September 2006 and the second on 18 January 2008.…

GST: adjustment note information requirements – Determination amended [63]

The Goods and Services Tax: Adjustment Note Information Requirements Amendment Determination 2013 was registered on the Federal Register of Legislative Instruments on Wed 21.8.2013. The amendments clarify A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination 2012 to ensure that the effect of paras 5(1)(g), 5(2)(g) and subclause 5(4) is applied…

*ATO warns of artificial arrangements to deliberately exploit a mismatch between trust law ‘income’ and tax law ‘net income’ [62]

The ATO on Mon 12.8.2013, issued Taxpayer Alert TA 2013/1 warning taxpayers against artificial arrangements where a deliberate mismatch is created between the amounts beneficiaries are entitled to receive from a trust and the amounts they are actually taxed on. Broadly, the ATO said the arrangement concerns a situation where a trust has generated a…

ATO ID 2013/45 – Ordinary income from shipping activities can be excluded from ‘instalment income’ to the extent that it is expected to be exempt [60]

The ATO on Fri 16.8.2013, issued ATO ID 2013/45 (Shipping activities income: exclusion from instalment income). According to this ID, ordinary income derived by a taxpayer can be excluded from instalment income for the purposes of s 45-120 of Sch 1 to the TAA to the extent that it is from shipping activities that relate to a…

ATO ID 2013/44 – person in the business of money lending is not assessable on interest already accrued (even if it later appears it should not have been) [59]

The ATO on Fri 9.8.2013, issued ATO ID 2013/44 (Assessable income: interest income of money lender). According to the ATO, a taxpayer who carries on a business of money lending has not derived, under s 6-5 of the ITAA 1997, interest from a loan calculated on a daily accrual basis that was returned as assessable income…

ATO ID 2013/43 – ‘Living Away From Home Allowance’ (LAFHA) requirements for ‘Fly in Fly Out’ (FIFO) and ‘Drive in Drive Out’ (DIDO) – must work 7th day [58]

The ATO on Fri 2.8.2013, released ATO ID 2013/43 (FBT: living-away-from-home allowance fringe benefits: fly-in fly-out and drive-in drive-out requirements). According to this ID, the requirements of s 31E(a)(i) of the FBTAA will not be satisfied where an employee during the period of their employment tenure works for 5-and-a-half days and remains on call on the…

PR 2013/15 – Tax consequences of the Macquarie Geared Equities Investment plus [57]

The ATO on Wed 14.8.2013, issued Product Ruling PR 2013/15 (Tax consequences of investing in equities using the Macquarie Geared Equities Investment plus (2013 Product Brochure)). It applies to entities that enter into the scheme from Wed 14.8.2013, until 30 June 2016. Broadly, the Ruling states that an amount equal to the expense incurred for interest on…

CR 2013/61-66 – Simplifying stapled structure; deductions; assessable income; FBT log book [56]

The ATO on Wed 7.8.2013, issued the following Class Rulings: CR 2013/61: Scrip-for-scrip roll-over: acquisition of Diversified Utility and Energy Trust No 3 by Diversified Utility and Energy Trust No 2. It applies from 1 July 2013 to 30 June 2014. Broadly, the Ruling states that where a holder makes a capital gain on the disposal of their units,…