Category Archives: Tax Month – August 2013

CR 2013/61-66 – Simplifying stapled structure; deductions; assessable income; FBT log book [56]

The ATO on Wed 7.8.2013, issued the following Class Rulings: CR 2013/61: Scrip-for-scrip roll-over: acquisition of Diversified Utility and Energy Trust No 3 by Diversified Utility and Energy Trust No 2. It applies from 1 July 2013 to 30 June 2014. Broadly, the Ruling states that where a holder makes a capital gain on the disposal of their units,…

TD 2013/18 – Illness related foreign earnings and s 23AG exemption [55]

This TD, issued on Wed 14.8.2013, states that foreign earnings derived by Australian Defence Force (ADF) members from a period of leave as a result of an accident or illness that occurred while deployed overseas by the ADF as a member of a disciplined force are exempt under s 23AG of the ITAA 1936. It indicates that…

TR 2013/D5 – Allocation of taxing rights: ships and aircraft [54]

This Draft Ruling, released on Wed 28.8.2013, clarifies the circumstances in which the ships and aircraft article of Australia’s tax treaties allocates Australia a right to tax amounts falling within s 129 of the ITAA 1936. It applies to treaty partner residents who carry on an enterprise for treaty purposes, and derive s 129 income from that enterprise…

TR 2013/D4 – PRRT: meaning of the phrase ‘involved in or in connection with petroleum exploration’ [53]

The ATO on Wed 21.8.2013, released Draft Taxation Ruling TR 2013/D4, which considers the meaning of the phrase “…involved in or in connection with exploration for petroleum …” in para 37(1)(a) of the Petroleum Resource Rent Tax Assessment Act 1987 (PRRT Act). Broadly, the Draft outlines the following: the phrase “exploration for petroleum” in s 37 of the…

Caporale v DCT – ‘Model litigant’ challenge [52]

The ATO on Thur 29.8.2013, released a Decision Impact Statement on the Federal Court’s decision in Caporale v DCT [2013] FCA 427. In that case, the Federal Court dismissed an application for interlocutory relief by a self-represented taxpayer to stay enforcement of any judgment and current legal proceedings in relation to her dispute with the…

Esso Australia Resources Pty Ltd v FCT – Full Federal Court upheld the Commissioner’s views about ‘taxing point’ and the ‘take or pay’ issue [51]

On 27.8.13 the Commissioner issued a Decision Impact Statement in relation to Esso Australia Resources Pty Ltd v FCT [2011] FCAFC 154. In that case, the Full Federal Court dismissed the taxpayers’ appeals and the Commissioner’s cross-appeal in a matter concerning the liability of 2 companies (BHP Billiton Petroleum (Bass Strait) Pty Ltd and Esso…

Fowler v FCT – Full Federal Court found that the Div 13A acquisition date was not the date of the contract of employment but later when the shares were worth more [50]

On 27.8.13 the Commissioner issued a Decision Impact Statement in relation to Fowler v FCT [2013] FCAFC 69. In that case, the Full Federal Court unanimously dismissed a taxpayer’s appeal, and held that for the purposes of the former ITAA 1936 employee share scheme (ESS) provisions (Div 13A), a taxpayer acquired a right with respect to…

McWilliam case – relevant Div 13A date of acquisition was date of contract of employment and there was no shortfall [49]

The ATO on Thur 22.8.2013, released a Decision Impact Statement on the Full Federal Court’s decision in FCT v McWilliam [2012] FCAFC 105. In that case, the Full Federal Court dismissed the Commissioner’s appeal against an earlier AAT decision in AAT Case [2012] AATA 142 that had held the taxpayer had applied the correct acquisition…

*Collection Point Case – FOI request refused because Act did not require the Commissioner to create software to comply [48]

The ATO on Thur 15.8.2013, released a Decision Impact Statement on the Full Federal Court’s decision in Collection Point Pty Ltd v FCT [2013] FCAFC 67. In that case, the Full Federal Court unanimously dismissed the taxpayer’s appeal from the decision in Collection Point Pty Ltd v FCT [2012] FCA 720, and confirmed that the…

*Yazbek case: amend individual’s assessment outside the 2 year period because mere object was a ‘beneficiary’ and amendment didn’t have to be as a ‘beneficiary’ [47]

The ATO on Wed 7.8.2013, released a Decision Impact Statement on the Federal Court’s decision in Yazbek v FCT [2013] FCA 39. In that case, the Federal Court dismissed an appeal from an AAT decision and confirmed that for the purposes of the time limits within which an assessment can be amended under s 170(1) of…