The ATO on Wed 29.2.2012, issued Class Ruling CR 2012/14 (Oceania Capital Partners Limited: return of capital and off-market share buy-back). It applies from 1 July 2011 to 30 June 2012. Broadly, the Ruling states that the share buy-back was an off-market purchase for the purposes of s 159GZZK of the ITAA 1936. It also…
The ATO on Wed 15.2.2012, issued the following Class Rulings: CR 2012/11: Return of capital: Exco Resources Limited. It applies from 1 July 2011 to 30 June 2012. The Ruling broadly states that the return of capital is not a dividend as defined in s 6(1) of the ITAA 1936. CR 2012/12: AMP Limited Equity…
The ATO on Wed 8.2.2012, issued Class Ruling CR 2012/10 (Bonus share plan: Australia Foundation Investment Company Limited). It applies from 1 July 2011. Among other things, the Ruling states that if the company does not credit its share capital account in connection with the issue of the bonus shares, then the value of the…
The ATO on Wed 1.2.2012, issued the following Class Rulings: Class Ruling CR 2012/6: Return of capital, acquisition of new interests and stapling of securities to form a new stapled security: Centro Australia Wholesale Fund; Class Ruling CR 2012/7: Return of capital, acquisition of new interests and stapling of securities to form a new stapled…
The Tax Office on Wed 1.2.2012, released this Draft TD which states the ATO view that it is possible 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, despite…
The ATO on Wed 1.2.2012, issued an Erratum to Taxation Determination TD 2007/28 (What is a “present legal obligation” of a private company for the purposes of s 109Y(2) of Div 7A of Pt III of the ITAA 1936?) to among other things, correct the distributable surplus formula. [LTN 20, 1/2]
This Draft GST Ruling, released on Wed 22.2.2012, sets out the Commissioner’s views on the meaning of “residential premises”, “commercial residential premises” and “accommodation in commercial residential premises” for the purposes of Subdiv 40-B (residential rent), Subdiv 40-C (residential premises) and Div 87 (long-term accommodation in commercial residential premises) of the GST Act. The 82-page…
GSTD 2012/1 – residential premises This GST Determination, released on Wed 22.2.2012, deals with the GST consequences following the sale of residential premises that are subject of a lease. It states there is a continued supply of the premises by way of lease, which remains an input taxed supply. Consequently, the purchaser of residential premises…
The taxpayer sold a marina in August 2006 for $8.9m. It claimed entitlement to concessional CGT treatment under Division 152 of the Income Tax Assessment Act 1997 , contending that the $5m maximum net asset value test was satisfied as the market value of the marina was $4.5m. The Commissioner did not accept that contention…
The taxpayer has appealed to the Federal Court against the decision in AAT Case [2012] AATA 45, Re Bell and FCT. The AAT ruled that the taxpayer beneficiary of a trust failed the maximum net asset value test for the purposes of accessing the CGT small business concessions in relation to a capital gain of…