The ATO on Thur 1.8.2013, released Practice Statement Law Administration PS LA 2013/3 (GA) to explain the circumstances in which the Commissioner will use his powers of general administration to allow a recipient to retain an input tax credit that it has claimed where a transaction was incorrectly treated by a supplier as giving rise…
The ATO on Fri 23.8.2013, released a Decision Impact Statement on the AAT’s decision in AAT Case [2013] AATA 443, Re Naidoo and FCT. In that case, the AAT found that a partnership was not carrying on an enterprise and therefore was not entitled to input tax credits claimed in respect of the relevant period.…
The AAT has affirmed the Commissioner’s decision that a taxpayer had an increasing adjustment under Div 135 of the GST Act in relation to 2 apartments purchased in a hotel complex. The taxpayer, a husband and wife partnership, purchased 2 apartments in the complex. The first purchase took place on 1 September 2006 and the second on 18 January 2008.…
The Goods and Services Tax: Adjustment Note Information Requirements Amendment Determination 2013 was registered on the Federal Register of Legislative Instruments on Wed 21.8.2013. The amendments clarify A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination 2012 to ensure that the effect of paras 5(1)(g), 5(2)(g) and subclause 5(4) is applied…
The ATO on Mon 12.8.2013, issued Taxpayer Alert TA 2013/1 warning taxpayers against artificial arrangements where a deliberate mismatch is created between the amounts beneficiaries are entitled to receive from a trust and the amounts they are actually taxed on. Broadly, the ATO said the arrangement concerns a situation where a trust has generated a…
The ATO on Thur 1.8.2013, released Practice Statement Law Administration PS LA 2013/3 to provide instructions to ATO personnel on what policies and guidelines must be followed when attempting to resolve or limit disputes by alternative dispute resolution (ADR). It said ADR is a term which widely refers to processes other than judicial or tribunal…
The ATO on Fri 16.8.2013, issued ATO ID 2013/45 (Shipping activities income: exclusion from instalment income). According to this ID, ordinary income derived by a taxpayer can be excluded from instalment income for the purposes of s 45-120 of Sch 1 to the TAA to the extent that it is from shipping activities that relate to a…
The ATO on Fri 9.8.2013, issued ATO ID 2013/44 (Assessable income: interest income of money lender). According to the ATO, a taxpayer who carries on a business of money lending has not derived, under s 6-5 of the ITAA 1997, interest from a loan calculated on a daily accrual basis that was returned as assessable income…
The ATO on Fri 2.8.2013, released ATO ID 2013/43 (FBT: living-away-from-home allowance fringe benefits: fly-in fly-out and drive-in drive-out requirements). According to this ID, the requirements of s 31E(a)(i) of the FBTAA will not be satisfied where an employee during the period of their employment tenure works for 5-and-a-half days and remains on call on the…
The ATO on Wed 14.8.2013, issued Product Ruling PR 2013/15 (Tax consequences of investing in equities using the Macquarie Geared Equities Investment plus (2013 Product Brochure)). It applies to entities that enter into the scheme from Wed 14.8.2013, until 30 June 2016. Broadly, the Ruling states that an amount equal to the expense incurred for interest on…