The ATO on Fri 15.11.2013, released Decision Impact Statements on the following:
- Intoll Management Pty Ltd v FCT [2012] FCAFC 179 – In that case, the Full Federal Court unanimously allowed the taxpayer’s appeal and held that dividends of id=”mce_marker”83m paid to the taxpayer by companies incorporated in Luxembourg were excluded from assessable income by virtue of being non-assessable, non-exempt income in the circumstances pursuant to s 23AJ of the ITAA 1936. Broadly, the ATO said in the Decision Impact Statement, where a trustee is paid a dividend from a non-resident in circumstances where that entity is the trustee of a trust that is the head of a consolidated group, the Commissioner will treat the dividend as having satisfied the requirement of the definition of “non-portfolio dividend” in s 317 of the ITAA 1936, insofar as that section requires that the company (the trust) has a “voting interest” in the relevant company that paid the dividend. It said it will also review Taxation Determination TD 2008/25 and make changes as necessary to reflect the decision of the Full Court.
- FCT v Park [2012] FCAFC 122 – In that case, the Full Federal Court by a 2:1 majority, allowed the Commissioner’s appeal from a 2011 decision in the Federal Magistrates Court in which the Commissioner’s garnishee notice was set aside regarding a property transaction. In the Decision Impact Statement, the ATO said the case confirms its view in relation to the Commissioner’s rights arising from a garnishee notice as stated in Practice Statement Law Administration PS LA 2011/18.
[LTN 222, 15/11/13]