John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

CR 2013/91-94 – Transfer payments; early retirement scheme, convertible shares, return of capital [39]

The ATO on Wed 27.11.2013, issued the following Class Rulings: CR 2013/91: Treatment of transfer payments to employees of Macquarie Generation following the sale of business to a private sector entity. It applies from Wed 27.11.2013 to 30 June 2014. The Ruling states that the proposed transfer payment made in accordance with the scheme described in the…

PR 2013/21 – Commissioner will exercise his s35-55 discretion (about non-commercial business losses) for the 2008 Macquarie Almond Investment [38]

The ATO on Wed 20.11.2013, issued Product Ruling PR 2013/21 (Macquarie Almond Investment 2008 – Early Growers (to 15 June 2008)). The Ruling applies to Growers that enter into the scheme as described in the Ruling on or after 12 March 2008 and on or before 15 June 2008. The Ruling states that the Commissioner will exercise his discretion for the 2012-13…

CR 2013/78-82 – Worker entitlement fund; separation of business; proposed merger of funds; etc [36]

The ATO, on Wed 6.11.2013, issued the following Class Rulings: Class Ruling CR 2013/78: FBT and income tax: employer contributions to the ReddiFund. According to the Ruling, the payment of a contribution to the ReddiFund by an employer pursuant to an “industrial instrument”, as that term is defined in s 136(1) of the FBTAA, will be…

*TR 2013/D6 – whether payments or transfers to shareholders and associates under the Family Law Act are deemed or actual dividends [35]

This Draft Ruling, released on Wed 13.11.2013, outlines the tax effect under s 44 of the ITAA 1936 and Div 7A of Pt III of the ITAA 1936 of private companies paying money or transferring property in satisfaction of Family Court orders in matrimonial property proceedings under s 79 of the Family Law Act 1975. Broadly, the Draft…

Roberts v DCT – taxpayer has lodged an appeal against decision that he didn’t have an arguable case for conscious maladministration [31]

The taxpayer has lodged an application for an extension of time in which to lodge an appeal against the decision of Besanko J in Roberts v DCT [2013] FCA 1108. In that case, the Federal Court granted judgment for the Commissioner concerning outstanding tax debts of the taxpayer (default assessments were issued to amend the taxpayer’s…

*Thalia Corporation Pty Ltd v Bentleys (SA) Pty Ltd – Fees paid to accounting firm re ATO audit reduced on appeal [30]

The South Australian Supreme Court has allowed an appeal and reduced the amount payable by a company to its accountants following the company’s claim that its accountants were negligent concerning the preparation of certain of its BASs. The respondent in this case is an accountancy firm which had been retained by the appellant, Thalia Corporation…