TR 2014/D2 – Foreign Income Tax Offset (FITO) limit and hedging transactions – foreign source issues [50]

This Draft Ruling, released on Wed 26.3.2014, deals with the application of s 770-75 of the ITAA 1997 (foreign income tax offset (FITO) limit) to an Australian resident taxpayer deriving gains and losses from foreign currency hedging transactions undertaken to mitigate the foreign currency fluctuation risk attached to the market value of a portfolio of assets.…

*TR 2014/D1 – Tax consequences of employee remuneration trust arrangements – deductible contributions and assessable receipts [49]

This Draft Ruling, issued on Wed 5.3.2014, outlines the taxation consequences for employers, trustees and employees who participate in employee remuneration trust arrangements (ERT). In particular, it explains how the taxation laws apply, when a contribution is made by an employer to the trustee of an ERT and benefits are paid or provided by the…

*TR 2014/1 – Commercial software developers: derivation of (pre-paid) income from licence agreements and ‘hosted’ or ‘cloud’ arrangements [48]

This Ruling, released on Wed 12.3.2014, deals with when commercial software developers derive income for the purposes of s 6-5 of the ITAA 1997 from licence agreements, and “hosted” or “cloud” arrangements. Broadly, the Ruling states where an amount properly attributable to a contractual obligation is subject to a “contingency of repayment”, the amount is derived…

*Garnishee notice for horse race winnings because ATO issued it in respect of the wrong taxpayer: ATO Decision Impact Statement (Oops) [46]

The ATO on Thur 27.3.2014, issued a Decision Impact Statement on the Federal Court’s decision in Ultra Thoroughbred Racing Pty Ltd v FCT [2013] FCA 1300. In that case, the Federal Court upheld the action of the applicant, “Ultra Thoroughbred Racing Pty Ltd”, to prevent Racing Victoria Limited from paying money to the Commissioner under…

CGT small business relief – daughter was a “puppet director” for her father’s trust, which didn’t have to be grouped with her company: Gutteridge case [45]

The ATO has issued a Decision Impact Statement on the AAT’s decision in AAT Case [2013] AATA 947, Re Gutteridge and FCT. In that case, the AAT allowed the appeals of 2 taxpayers (a married couple) and held that the husband alone was the person who controlled the relevant Trust within the meaning of s 328-125(3)…

Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v FCT – Taxpayer appeals decision that vesting land in JV trust was a CGT event [44]

The taxpayer has appealed to the Full Federal Court against the decision of Kenny J in Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v FCT [2014] FCA 1. The Federal Court had held that the taxpayer (a trustee of a trust), that owned land and that, in effect, transferred it to a…

*Australian Building Systems Pty Ltd v FCT – Commissioner appeals to the Full Federal Court from a decision that s254 does apply to a liquidator for CGT [43]

The Commissioner has appealed to the Full Federal Court against the decision of Logan J in Australian Building Systems Pty Ltd v FCT [2014] FCA 116. The Federal Court had held that, where an assessment has not been issued, s 254 of the ITAA 1936 does not require retention of monies by a liquidator upon the mere…