CR 2016/51: Scheme of Arrangement under which Unity Mining Limited returned capital to its shareholders and the largest shareholder bought the balance of the Unity shares

The ATO today [Wed 13.7.2016] issued the following Class Ruling: CR 2016/51: Return of Capital and Scheme of Arrangement – Unity Mining Limited. It applies from 1 July 2015 to 30 June 2016. Extract from ruling Ruling Return of capital is not a dividend 30. The ROC paid by Unity to the Unity Scheme Shareholders is not a dividend as…

CR 2016/50 – AMP Capital Community Infrastructure Fund – tax effect of a Div 6C ‘trading trust’ making a capital distribution and compulsorily reinvested into the stapled ‘non-trading’ trust

On Wed 13.7.2016, the ATO issued the following Class Ruling: CR 2016/50: AMP Capital Community Infrastructure Fund – capital reallocation. It applies from 1 July 2015 to 30 June 2016. Extract from Class Ruling Class of entities 3. The class of entities to which this Ruling applies is the unit holders of the AMP Capital Community Infrastructure Trading Trust (TT)…

LCG 2016/3 – Small Business Restructure Rollover – ATO guidance on meaning of ‘genuine restructure of an ongoing business’ (including various examples)

On Wednesday Wed 13.7.2016, the ATO released the following Law Companion Guideline: LCG 2016/3: Small Business Restructure Roll over: genuine restructure of an ongoing business and related matters. It explains the meaning of the term “genuine restructure of an ongoing business” in Subdiv 328-G of the ITAA 1997. Extract from ATO’s Law Guideline What this Guideline is about 1.…

LCG 2016/2 – Small Business Restructure Rollover – ATO guide on the tax consequence of this rollover (by way of various examples)

On Wed 13.7.2016, the ATO released the following Law Companion Guideline: LCG 2016/2: Small Business Restructure Roll over: consequences of a roll over. It explains the tax consequences and adjustments that occur when the transferor and transferee choose to apply the small business restructure rollover (‘SB Restructure Rollover‘) in Subdiv 328-G of the ITAA 1997. Extract from Subdiv…

Rawson Finances Pty Ltd v FCT – Commissioner denied permission to take evidence from the chair of an Israeli bank as there was no evidence she had personal knowledge and the subpoenaed documents were defacto discovery (not ‘in aid of’ this examination)

On Tuesday 12.7.2016, the Full Federal Court unanimously allowed a taxpayer’s appeal and held that the orders of the primary judge (which provided for the issue of a draft letter of request to a foreign bank) should be set aside. The letter of request had been sought by the Commissioner to be issued to the judicial…

OECD releases standardised IT-format for providing feedback on received Common Reporting Standard information

11/07/2016 – The OECD has today released its standardised IT-format for providing structured feedback on exchanged Common Reporting Standard information – the CRS Status Message XML Schema – as well as the related User Guide. With the first exchanges under the Common Reporting Standard for automatic exchange of financial account information being scheduled for September 2017, jurisdictions are now…

OECD releases discussion draft on the design and operation of the group ratio rule under BEPS Action 4

11/07/2016 – Interested parties are invited to provide comments on a discussion draft which deals with elements of the design and operation of the group ratio rule under Action 4 (Interest deductions and other financial payments) of the BEPS Action Plan. In October 2015, the BEPS Action 4 Report Limiting Base Erosion Involving Interest Deductions and Other Financial…

Vic stamp duty: Arrigo v Comr of State Revenue – transfer of subdivided apartments in old ‘stratum’ title, to unit holder, held exempt from duty under s36 for transfers to beneficiaries of a fixed trust

A taxpayer has been successful before the Victorian Civil and Administrative Tribunal in seeking a duty exemption in relation to a transfer of land to him from a company under s36 of the Duties Act 2000 (Vic) (property passing to beneficiaries of fixed trusts). The background facts were complex. The Tribunal heard details of a “trust company”…

SA 2016-17 Budget tax announcements & Bill – payroll rebate; off-the-plan stamp duty concession; PPR land tax exemption all extended; sports groups land tax emption expanded; 15% wagering tax introduced

The 2016-17 SA Budget was handed down on Thursday 7.7.2016. The SA Treasurer, Tom Koutsantonis, announced a budget surplus. Mr Koutsantonis also announced the following tax proposals: extending the small business payroll tax rebate – The small business payroll tax rebate introduced in the 2013-14 Budget will be extended for a further 4 years to 2019-20. extending and expanding…