CR 2013/17-18 – Issues of capital notes and convertible preference shares by Banks [45]

The ATO on Wed 6.3.2013, issued the following Class Rulings: CR 2013/17: Westpac Banking Corporation – Westpac Capital notes. It applies from 1 July 2012 to 30 June 2021. Broadly, the Ruling states that the distributions and franking credits from the capital notes are non-share dividends under s 974-120 of the ITAA 1997 and are assessable. CR 2012/18: National Australia…

CR 2013/20 – Merger of property group – when CGT event A1 occurred for units in trust [46]

The ATO on Wed 20.3.2013, issued Class Ruling CR 2013/20 (Merger of Cromwell Property Fund and Cromwell Property Group). It applies from 1 July 2012 to 30 June 2013. Among other things, the Ruling states that CGT event A1 happened when Cromwell Property Fund unit holders disposed of their units to Cromwell Property Group under the merger as described…

Tax compliance for large taxpayers: ATO looking closely at 170 taxpayers [51]

In a recent speech, Deputy Commissioner Large Business and International, Mark Konza, spoke about the ATO’s compliance approach to large taxpayers. He spoke of 3 initiatives the ATO has been undertaking to increase compliance and minimise risk including: pre-lodgment reviews (PCRs); use of the reportable tax positions schedule; and increased guidance on information gathering and…

*GST: waiver of tax invoice requirement re lessees and commercial premises after the reversion has been sold [53]

The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement (Creditable Acquisition by a Lessee or Sub-Lessee Following a Sale of a Reversion in Commercial Premises) Legislative Instrument 2013 was registered on the Federal Register of Legislative Instruments on Thur 21.3.2013. It provides that an input tax credit for a creditable…

Refunding overpayments of GST: latest draft better but still not good enough, per ASFA submission [55]

ASFA says the second round of exposure draft legislation regarding the circumstances where the Commissioner will refund an overpayment of GST is an improvement on the previous draft. However, in its submission to Treasury, ASFA said it was concerned that the draft continues to prevent taxpayers from seeking refunds of GST in legitimate circumstances. Among…