TD 2015/3 – ‘The interest’ referred to in the phrase at the end of subsection 974-80(2) is the interest held by the ‘ultimate recipient’ [41]

On Wed 18.3.2015, the ATO released Taxation Determination TD 2015/3, which ruled that ‘The interest’ referred to in the phrase at the end of subsection 974-80(2) is the interest held by the ‘ultimate recipient’ and not the interest held by the ‘connected entity’. The Determination goes on the explain: Division 974 contains rules for classifying an…

TD 2015/2 – ‘debt interest’ issued by AusCo is not an ‘equity interest’ under s974-80(1)(d) just because non-resident co invests in debt interest holder [40]

The ATO released Taxation Determination TD 2015/2 on Wed 18.3.2015, ruling that s974-80(1)(d) will not be satisfied: “ merely because a non-resident entity has chosen to invest indirectly in a debt interest issued by an Australian resident company and there is one or more equity interests interposed between the non-resident entity and the entity holding the…

TR 2015/D1 – ‘Bodies Corporate’ under strata title legislation – tax consequences [39]

The ATO has issued a draft ruling explaining specific income tax issues that affect: bodies corporate constituted under strata title legislation; and proprietors of a lot held under that legislation. In particular, it sets out the principles that determine which entity holds property for the purposes of determining: the assessability of income and the deductibility…

Engineering Manager and FCT – Individual returning to Australia mid-year was not resident for the whole year – no question of law (really?) [38]

The ATO [on Mon 2.3.2015] issued a Decision Impact Statement on The Engineering Manager and FCT [2014] AATA 969. In that case, the AAT held that an engineer who returned to Australia in April 2011 after working overseas since 2004, was not a resident of Australia for the whole of the 2011 year. The ATO said the…

Rio Tinto Services Ltd v FCT – appeal from decision that taxpayer not entitled to input tax credits to build and maintain mining accommodation [37]

The taxpayer has appealed to the Full Federal Court against the decision in Rio Tinto Services Ltd v FCT [2015] FCA 94. The Federal Court had dismissed the taxpayer’s appeal concerning its entitlement to input tax credits (ITCs) for certain acquisitions relating to mining accommodation (employee/contractor housing) in WA. [LTN 50, 16/3/15] FJM Note As…