Re Dandenong Motors Unit Trust and FCT – No GST refunds for net negative amounts for car dealership [48]

The AAT has dismissed a taxpayer’s appeal and held that the Commissioner was correct to deny it GST refunds for net negative amounts. Between 1987 and June 2003, the taxpayer conducted a car dealership. As a part of its business, it received hold-back payments made by parties (manufacturers or importers of motor vehicles) from whom it bought…

*High Court gives Commissioner leave to appeal in Unit Trend Services Pty Ltd v FCT – where the FFC split on whether GAAP applied to pre 16 March 2005 choices under the Margin Scheme [47]

The High Court has referred to an enlarged bench of the Court the Commissioner’s application for special leave to appeal against the decision of the Full Federal Court in Unit Trend Services Pty Ltd v FCT [2012] FCAFC 112. The appeal concerns the application of the GST anti-avoidance provisions in Div 165 of the GST Act.…

ATO data-matching program: credit and debit card sales by businesses [46]

The ATO has advised that it has obtained data that identifies credit and debit card sales made by Australian businesses in the 2011-12 financial year from various banks including: Commonwealth Bank of Australia; St George Bank; American Express Australia Limited; Diners Club Australia; Westpac Banking Corporation; Australia and New Zealand Banking Group Limited; National Australia…

*PS LA 2013/1 – Commissioner’s guidance on how to prepare an statement of facts and reasons under s13 of the ADJR Act [45]

The ATO Thur 31.1.2013, released Practice Statement PS LA 2013/1 outlining the guidelines to be followed by tax officers preparing statements of reasons pursuant to s 13 of the Administrative Decisions (Judicial Review) Act 1997 (ADJR Act). The Practice Statement states that s 13 imposes an obligation on decision makers in the ATO to provide a written…

CR 2013/7-10 – Early retirement; demerger; FITO and ESS; FBT parking [44]

The ATO on Wed 30.1.2013, issued the following Class Rulings: CR 2013/7: Queensland Government Department of Education Training and Employment – early retirement scheme. It applies from 30 January 2013 to 31 December 2013. The Ruling broadly states that the scheme is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997. CR 2013/8: Demerger of…

*TD 2013/2 – Wind farming income is not primary production income for averaging purposes [40]

This TD, issued Wed 23.1.2013, states that ordinary income derived by an individual from allowing wind farming infrastructure to be constructed, operated and accessed on freehold land that they own and use in carrying on a primary production business does not constitute “assessable primary production income” of that individual for the purposes of Div 392 of…

TD 2013/1 – Interest is deductible on a full recourse loan used to pay the interest on another capital protected borrowing [39]

This TD, issued on Wed 23.1.2013, states that where a taxpayer enters into a limited recourse loan (investment loan) which is made under a capital protected borrowing for the purposes of Div 247 of the ITAA 1997, and a full recourse loan (interest loan) is entered into solely to fund an amount of prepaid interest on…