The ATO on Fri 6.12.2013, issued the following IDs: ATO ID 2013/65: Company tax losses: whether company can disregard concessional tracing rules that apply in relation to more than one stake as part of forming the necessary belief for the purposes of the “no detriment” rule; and ATO ID 2013/66: Company tax losses: can a…
The ATO on Wed 18.12.2013, released Product Ruling PR 2013/24 (Challenger Guaranteed Annuity (Liquid Lifetime)). It applies to entities that purchase an annuity as described in the Ruling from 1 July 2013 until 30 June 2016. Among other things, the Ruling states that regular payments made under the annuity are assessable income under s 27H(1) of the ITAA 1997 to…
The ATO on Wed 18.12.2013, released the following Class Rulings: CR 2013/99: Village Roadshow Limited – return of capital. It applies from 1 July 2013 to 30 June 2014. The Ruling broadly states that the return of capital to shareholders is not a dividend as defined in s 6(1) of the ITAA 1936. CR 2013/100: University of Tasmania 2014 early retirement…
The ATO on Wed 11.12.2013, issued the following Class Rulings which broadly state that the early retirement schemes to be implemented are early retirement schemes for the purposes of s 83-180 of the ITAA 1997: CR 2013/97: Essential Energy’s Network Business Mix and Match Program. It applies from 11 December 2013 to 31 December 2015. CR 2013/98: Department of Human…
The ATO on Wed 4.12.2013, released Product Ruling PR 2013/22 (Tax consequences for a borrower under a mortgage reduction program managed by Allstate Home Loans). It applies to entities that enter into the scheme from Wed 4.12.2013 until 30 June 2016. Broadly, the Ruling states that provided the scheme is carried out as described, the anti-avoidance provisions…
This Draft TD, issued on Wed 11.12.2013, states that a franking credit arises in the franking account of a head company of a consolidated group when a franked distribution is made by an entity that is not a member of a consolidated group to a trust that is a subsidiary member of the consolidated group.…
This Draft Taxation Ruling, issued on Wed 11.12.2013, considers the requirement in s23AH of the ITAA 1936 where a company is taken to have a permanent establishment (PE) in relation to substantial equipment under both s6(1)(b) of the ITAA 1936 and under Australia’s tax treaties. Broadly, the Draft states that where the company is taken…
The ATO on Tue 10.12.2013, released Decision Impact Statements on the following: Sea Shepherd Australia Ltd v FCT & Anor [2013] FCAFC 68 – In that case, the Full Federal Court affirmed the Commissioner’s decision that Sea Shepherd Australia was not entitled to be endorsed as a deductible gift recipient. The taxpayer’s application for special…
The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Gordon J in PTTEP Australasia (Ashmore Cartier) Pty Ltd v FCT [2013] FCA 1175. In that case, the Federal Court determined the taxing point and consideration receivable by a taxpayer in relation to revenue it received from the sale…
The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Middleton J in IOOF Holdings Limited v FCT [2013] FCA 1189. In that case, the Federal Court dismissed the taxpayer’s appeal and confirmed that for the purposes of undertaking its review of the Commissioner’s deemed disallowance of the taxpayer’s…