ATO warns taxpayers against the form of ‘dividend washing’ where two franking credits are picked up [44]

The ATO has warned taxpayers against trading shares on a Special Market operated by the ASX with the sole purpose of obtaining additional franking credits. It says the Special Market operated by the ASX was established to facilitate options trading and the dividend washing trading strategy attempts to take advantage of a company’s shares being…

PS LA 2011/13 – ATO Practice Statement on cross border recovery of taxation debts updated for multilateral convention on mutual administrative assistance [43]

The ATO has amended Practice Statement Law Administration PS LA 2011/13 (Cross border recovery of taxation debts). The amendments update the content to take into account Australia’s entry into the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (as amended by the 2010 Protocol). The amendments also include other minor changes to meet style…

CR 2013/77 – FBT: frequent flyer points under LM High Flyers program – Toyota Dealers High Flyers Incentive Scheme provides property benefits [41]

The ATO, on Wed 30.10.2013, issued Class Ruling CR 2013/77 (FBT: rewards received by an employee under the LM High Flyers incentive program). The Ruling applies to employers, appointed under an agreement with Toyota Motor Corporation Australia Limited to be authorised dealers, who enable employees to participate in the LM High Flyers incentive program (the…

PR 2013/17-20 – Timber and almond projects; Westpac Protected Equity Loan [39]

The ATO on Wed 23.10.2013, issued the following Product Rulings: PR 2013/17 (AgriWealth 2014 Softwood Timber Project). According to this Ruling, a Grower can claim deductions for specified amounts (eg establishment services fees, etc) when they are paid to the Manager. It applies prospectively from Wed 23.10.2013, the date it was published. PR 2013/18 (Macquarie…

CR 2013/75 – The Imperial Tobacco Australia Limited Voluntary Early Retirement Scheme [38]

The ATO on Wed 16.10.2013, issued Class Ruling CR 2013/75 (The Imperial Tobacco Australia Limited Voluntary Early Retirement Scheme (VRS)). It applies from Wed 16.10.2013 to 28 February 2014. Broadly, the Ruling states that the early retirement scheme to be implemented is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997. [LTN 200,…