As a result of the release of Reserve Bank data, the benchmark interest rate for the 2013-14 income year, for the purposes of the deemed dividend provisions of Div 7A of the ITAA 1936, can now be calculated to be 6.20% (down from 7.05% for 2012-13). The benchmark interest rate is the same as the Indicator…
In a decision handed down on Tue 25.6.2013, the AAT has found that 2 taxpayers were not carrying on an enterprise and were therefore not entitled to claim input tax credits. The taxpayers were registered for GST and claimed input tax credits on a number of purchases made following the acquisition of a rural property…
The Federal Court has dismissed a taxpayer’s appeal against an earlier AAT decision that it was not carrying on an enterprise and therefore not entitled to input tax credits (ITCs). In AAT Case [2013] AATA 40, Re Bayconnection Property Developments Pty Ltd and Ors and FCT, the AAT had held that 5 company taxpayers were…
The Tax Laws Amendment (2013 Measures No 4) Bill 2013 was introduced in the House of Reps Wed 26.6.2013. It contains the following amendments: Refunding excess GST – proposes to amend the GST Act to ensure that overpaid GST is refundable only in certain circumstances [inserting a new Div 142 into the GST Act]. The…
The ATO on Wed 5.6.2013, released the following Class Rulings: CR 2013/33: Treatment of transfer payments to employees of Eraring Energy following the sale of business to a private sector entity. It applies from Wed 5.6.2013 to 30 June 2014. Broadly, the Ruling states that the proposed transfer payment is in consequence of the termination of employment.…
The ATO on Thur 20.6.2013, released Practice Statement Law Administration PS LA 2013/2 which outlines the role and function of the ATO’s Economist Practice, when accredited economic advice should be obtained, and the process of obtaining both accredited and external economic advice for ATO personnel. Broadly, the Practice Statement indicates that economists in the ATO…
The ATO on Wed 19.6.2013, released Class Ruling CR 2013/47 (Scrip-for-scrip: exchange of shares in Xstrata plc for shares in Glencore International plc). It applies from 1 July 2012 to 30 June 2013. Broadly, the Ruling states that Xstrata shareholders who made capital gains on their shares being cancelled or transferred are eligible to choose scrip-for-scrip rollover under Subdiv…
This Draft Determination, released Wed 5.6.2013, states broadly the Commissioner’s view that a dividend access share arrangement of the type described in the Determination is a scheme “by way of dividend stripping” or “in the nature of dividend stripping” within the meaning of s 177E of Pt IVA of the ITAA 1936. As a consequence, it…
This Ruling, released on Wed 26.6.2013, applies from 1 July 2013, and explains the methodology used by the Commissioner in making determinations of the effective life of depreciating assets under s 40-100 of the ITAA 1997. The Ruling replaces Taxation Ruling TR 2012/2, which is withdrawn on and from 1 July 2013. To the extent that the Commissioner’s views in…
The ATO on Wed 12.6.2013, issued the following Class Rulings: CR 2013/40: Early retirement scheme for Barwon Region Water Corporation. It applies from Wed 12.6.2013 to 1 October 2014. Broadly, the Ruling states that the early retirement scheme to be implemented by Barwon Water is an early retirement scheme for the purposes of s 83-180 of the ITAA…