Class Rulings [18]

The ATO on Wed 27.8.2014, issued the following Class Rulings:

  • CR 2014/67: Essential Water Mix and Match Program;
  • CR 2014/68: Avant Mutual Group Limited – Retirement Reward Dividend; and
  • CR 2014/69: FBT: employers who use the TomTom Telematics system for car log book and odometer records.

[LTN 165, 27/8/14]

*Bitcoin – income tax, GST and FBT treatment: ATO Draft Determinations, GST Ruling and Guidance Paper [17]

The ATO says it has on Wed 20.8.2014, delivered guidance on the tax treatment of Bitcoin and other crypto-currencies in time for people to complete their 2013-14 income tax returns. The guidance includes Draft Taxation Determinations and a Draft GST Ruling (see below). The ATO has also issued a Guidance Paper. Under its guidance, the…

TR 2014/D5 – Special conditions for not-for-profit entities with exempt income [16]

This Draft Ruling, released Wed 13.8.2014, outlines the special conditions that various entities listed in Div 50 of the ITAA 1997 (mostly not-for-profit entities) must satisfy for their ordinary and statutory income to be exempt from income tax. It considers 2 of the special conditions that the entities must satisfy, namely: that the entity must comply…

FCT v Hunger Project Australia – Commissioner accepts that a ‘public benevolent institution’ does not need to directly provide relief [14]

The ATO has released a Decision Impact Statement on the Full Federal Court decision in FCT v Hunger Project Australia[2014] FCAFC 69. The Full Federal Court decision dismissed the Commissioner’s appeal and held that Hunger Project Australia (HPA) is a public benevolent institution (PBI) for FBT purposes even though it was predominately engaged in fund…

Howard v FCT – correct entity to be taxed on damages and distributions from non-resident trust [15]

The ATO has issued 2 Decision Impact Statements in response to the outcomes of 2 separate matters decided upon by the Full Federal Court in Howard v FCT [2012] FCAFC 149. Non-resident trust distributions The Full Court dismissed the taxpayer’s appeal against a decision that distributions (totalling almost $6.34m) received by the taxpayer (in the…

Re Roesch and FCT – Asset betterment method: excessive assessment not demonstrated [10]

The AAT has affirmed an amended assessment issued to a taxpayer for the 2004 income year that was based on an asset betterment calculation. In March 2005, the taxpayer lodged his 2004 income tax return declaring a taxable income of $7,382. In July 2011, the Commissioner using the asset betterment method issued an amended assessment. The amended assessment included…

DCT v Haritos & Ors – Commissioner obtains declaration that transfer of shares void re debt recovery matter [11]

The Commissioner has been successful before the Supreme Court of Victoria in seeking declaratory relief to the effect that a company (“Glen”) was the beneficial owner of 4 shares in another company (“Jinacan”).  Jinacan owned commercial property valued at some $8.5m. The reason the Commissioner sought the orders was that the Commissioner was an unsecured…