PR 2014/1 – National rental affordability scheme joint venture offsets etc. [31]

The ATO on Wed 15.1.2014, issued Product Ruling PR 2014/1 (The tax consequences of entering into a Non-Entity Joint Venture Agreement with Tremplin Limited relating to participation in the National Rental Affordability Scheme (NRAS)). It applies to entities that enter into the scheme from Wed 15.1.2014 to 30 June 2016. The Ruling states that investor entities will be…

TD 2014/D7 – capital support given to loss making subsidiary not deductible under any provision in the ATO’s view [30]

This Draft Taxation Determination, issued on Wed 29.1.2014, states that capital support payments described in the Draft are not deductible for the purposes of para 8-1(2)(a) of the ITAA 1997, or under ss 230-15(2), 230-15(3), and 40-880. The arrangement outlined in the Draft consists of a parent entity agreeing to provide a subsidiary with one…

*TD 2014/D2-D6 – Consolidation and rights to future income and residual tax cost setting rules [29]

The ATO on Wed 15.1.2014, released Draft Taxation Determinations TD 2014/D2-D6 on the consolidation changes introduced by Pt 4 of Sch 3 to the Tax Laws Amendment (2012 Measures No 2) Act 2012 (rights to future income and residual tax cost setting rules) which are relevant in ascertaining whether the pre-rules, interim rules, or prospective rules apply…

FCT v Cancer and Bowel Research Association Inc atf the Cancer and Bowel Research Trust – AAT decision to remit charitable institution status matter [26]

The ATO on Tue 21.1.2014, released a Decision Impact Statement on the Full Federal Court’s decision in FCT v Cancer and Bowel Research Association Inc as Trustee for the Cancer and Bowel Research Trust [2013] FCAFC 140. In that case, the Full Court had unanimously dismissed the Commissioner’s appeal from a “decision” of the AAT…

Macquarie Bank (OBU) case – ATO view of the Full Federal Court decision not to apply the anti ‘U-turns’ Practice Statement (and render that issue non-justiciable) [25]

The ATO on Mon 13.1.2014, released a Decision Impact Statement on the Full Federal Court’s decision in Macquarie Bank Limited & Anor v FCT [2013] FCAFC 119. In that case, the Full Federal Court refused Macquarie Bank Ltd leave to appeal against the decision of Edmonds J in Macquarie Bank Limited & Anor v FCT [2013]…

Australian Pipeline Limited as Responsible Entity for the Australian Pipeline Trust v FCT – taxpayer appeals decision denying depreciation on pipeline under consolidation regime [23]

The taxpayer has appealed to the Full Federal Court against the decision 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 exception provided in s 705-47(5)…