TR 2014/4 – Effective life of depreciating assets from 1 July 2014 [38]

This Ruling, released on Wed 25.6.2014, applies from 1 July 2014, and explains the methodology used by the Commissioner in making determinations of the effective life of depreciating assets under s 40-100 of the ITAA 1997. The Ruling replaces Taxation Ruling TR 2013/4, which is withdrawn with effect from 1 July 2014. To the extent that the Commissioner’s views in…

TR 2014/3 – Income from a ‘permanent establishment’ O/S, represented by substantial equipment, not ‘NANE’ under s23AH unless carrying on business [37]

This Ruling, issued Wed 11.6.2014, considers the application of the requirement in s 23AH of the ITAA 1936 that a company “carry on a business at or through a permanent establishment (PE)”, in circumstances where a company is taken to have a PE: in relation to substantial equipment under para (b) of the definition of PE…

*Fishermen joint venturers not ‘employees’ for super (SGC) purposes: ATO view on AAT case: Re Dominic B Fishing Pty Ltd and FCT [36]

The ATO on Thur 5.6.2014, issued a Decision Impact Statement on the decision in AAT Case [2014] AATA 205, Re Dominic B Fishing Pty Ltd and FCT. In that case, the AAT held that fishing crew members on a commercial fishing vessel operated by the taxpayer, were not “employees”, at common law, or under the…

*FCT v Darling – Husband has applied for special leave to appeal to the High Court: Commissioner should not have access to Court documents for an audit [35]

It is understood that one of the parties (the husband) has applied for special leave to appeal to the High Court against the decision of the Full Court of the Family Court in FCT v Darling [2014] FamCAFC 59. The Full Court of the Family Court had ruled that the Court at first instance wrongly…

*FCT v Resource Capital Fund III LP – taxpayer seeks leave to appeal to the High Court from DTA and valuation decision [34]

The taxpayer has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in FCT v Resource Capital Fund III LP [2014] FCAFC 37. In that case, the Full Court unanimously allowed the Commissioner’s appeal and held that the taxpayer, a non-resident limited partnership, was assessable on…

*Blank v FCT (No 2) – taxpayer appealed decision of Edmonds J not to re-open the decision he was assessable on international sums held to be deferred remuneration [32]

The taxpayer has appealed to the Full Federal Court against the decision of Edmonds J in Blank v FCT (No 2) [2014] FCA 517. The Federal Court had dismissed the taxpayer’s application to re-open his case after the Court at first instance in Blank v FCT [2014] FCA 87 held that a payment of USid=”mce_marker”60m made…

*Australian Pipeline Limited as Responsible Entity for the Australian Pipeline Trust v FCT – taxpayer withdraws appeal – entity an ‘associate’ before joining consolidated group [31]

The taxpayer has discontinued its appeal to the Full Federal Court against the decision of Robertson J in Australian Pipeline Limited as Responsible Entity for the Australian Pipeline Trust v FCT [2013] FCA 1372. The Federal Court had dismissed the taxpayer’s appeal from an adverse private ruling concerning the issue of whether the conditions for the…

*Re RepairCo and FCT – No deductions for contributions to employee welfare fund – and assessments within time [30]

The AAT has confirmed that a taxpayer, an automotive repair company, was not entitled a deductions for a contribution paid to an off-shore “employee welfare fund” in the 1998 income year nor to a deduction for the resultant carried forward loss and another contribution in the 1999 income year. However, the AAT found that while…

*Re Van Gestel and FCT – Alleged identity fraud in BAS: Tribunal has jurisdiction to review [29]

The AAT has found that it has jurisdiction to entertain a review of an objection decision that affirmed assessments of net GST amounts and net fuel credit amounts owed by a taxpayer. Monthly BASs were lodged in the name of the taxpayer’s business for the July 2010 and August 2010 periods. Both BASs resulted in refunds, $9,695 for July 2010, and…