The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 2nd quarter of the 2012-13 financial year (ie 1 October 2012 – 31 December 2012) are as follows: GIC annual rate is 10.62%; GIC daily compounding rate is 0.02901639%; SIC annual rate is 6.62%; SIC daily…
The ATO Wed 19.9.2012 issued Class Ruling CR 2012/80 (Selective Capital Reduction: Mesbon China Nylon Limited). It applies to shareholders of Mesbon China Nylon Limited (Mesbon) who participate in the selective capital reduction as described in the Ruling. According to the Ruling, the selective capital reduction will not be treated as a buy-back for the…
The ATO on Wed 5.9.2012, released the following Class Rulings: : Talent2 International Limited Scheme of Arrangement and payment of CR 2012/66Proposed Special Dividend. It applies from 1 July 2012 to 30 June 2013. Among other things, the Ruling states that a resident shareholder who receives a special dividend is required to include the dividend…
This Draft TD, issued Wed 19.9.2012, concerns a receiver who disposes of a CGT asset as the agent for a debtor and any resultant obligations under s 254 of the ITAA 1936. In particular, the Draft TD deals with the question of whether the receiver has an obligation under s 254 to retain from the…
This Draft TD, issued Wed 19.9.2012, concerns s 254 of the ITAA 1936 relating to agents and trustees. In particular, the Draft TD deals with the question of whether income tax must have been assessed before an agent or trustee has an obligation under s 254 to retain sufficient money to pay tax, which is…
This Determination, released on Wed 12.9.2012, provides an update of the amounts the Commissioner will accept for 2011-12, as estimates of the value of goods taken from trading stock for private use by taxpayers in certain specified industries. The amounts (which exclude GST) are: Type of Business Adult/Child over 16 years ($) Child 4-16…
The ATO has issued Decision Impact Statements on the following cases: Re Atlantis Holdings Pty Limited in its capacity as trustee of the Bruce James Lyon Family Trust [2012] NSWSC 112 – in this case, the applicant (the trustee) sought judicial advice under s 63 of the Trustee Act 1925 (NSW) concerning certain beneficiary matters.…
The ATO on Mon 17.9.2012, issued the following Decision Impact Statements: FCT v Noza Holdings Pty Ltd & Anor [2012] FCAFC 43 – In that case, the Full Federal Court unanimously confirmed the decision that the head company of an Australian group of consolidated companies was entitled to a deduction under s 25-90 of the…
The ATO on Wed 5.9.2012, released the following Decision Impact Statements: Mount Pritchard & District Community Club Limited v FCT [2011] FCAFC 129 – In that case, the Full Federal Court unanimously held that assessments issued by the Commissioner were not in breach of s 170BB of the ITAA 1936 or s 357-60 of Sch…
The taxpayers have appealed to the Full Federal Court against the decision of Perram J in Hua Wang Bank Berhad & Ors v FCT (No 2) [2012] FCA 938 (31 August 2012). The Federal Court had, among other things, dismissed the taxpayers’ application for judicial review of the Commissioner’s decision to issue a formal request…