ATO Documents by maclaren1


									ATO Documents
Released 18.6.07

Class Ruling
CR 2007/67: Income tax: scrip for scrip: acquisition of Smorgon Steel Group Limited by OneSteel
Draft Taxation Ruling
TR 2007/4: Income tax: entitlement to foreign tax credits under Division 18 of Part III of the Income
Tax Assessment Act 1936 when foreign income is included in the net income of a trust estate
Notices Of Withdrawal
Sales Tax Rulings
STNS 1: Sales tax: new series rulings: explanation and status
STNS 2: Sales tax: scheme of the sales tax legislation
STNS 3: Sales tax: 'use' in sales tax legislation
STNS 5: Sales tax: guidelines for the remission of additional tax
STNS 3002: Sales tax: subitem 81(1): goods for use by certain hospitals, public benevolent institutions
and public organizations for the relief of the unemployed
STNS 3003: Sales tax: item 63A: goods for use by certain universities or schools
STNS 3005: Sales tax: goods for use in the agricultural industry
Sales Tax Determinations
STD 2000/2: Sales tax: classification of absorbent stone and clay granules
STD 96/9: Sales tax: taxable value of music compact disks
STD 96/10: Sales tax: classification of drinking yoghurt
STD 96/11: Sales tax: taxable value of bundled lots of imported repaired computer parts
STD 97/1: Sales tax: trigger sprayers and pressure sprayers
STD 97/2: Sales tax: classification of hand-held breast pump kits
STD 97/3: Sales tax: forestry activities in the agricultural industry
STD 97/4: Sales tax: in-house training centres
STD 97/5: Sales tax: classification of digital cameras and still video cameras
STD 98/1: Sales tax: taxable value of new motor vehicles with a gross vehicle mass of less than 7.5
STD 98/3: Sales tax: exemption under items 25 and 26 for goods for use in producing motion picture
STD 98/4: Sales tax: classification of fireplaces, space heaters and flue kits
STD 98/5: Sales tax: promotional rebates
STD 98/6: Sales tax: classification of frozen yoghurt
STD 98/7: Sales tax: machinery for use in the excavation or movement of earth, rock or natural
deposits in the soil

Released 20.7.07

Interpretative Decisions
ATO ID 2007/157: Withholding Tax: income that is equivalent to the payment of interest on a loan
ATO ID 2007/158: GST and finance leases and securitisation arrangements
ATO ID 2007/159: GST and cheques issued by a non-authorised deposit-taking institution

Withdrawn Interpretative Decisions
ATO ID 2001/109: GST and supplies used or enjoyed outside of Australia
ATO ID 2001/140: GST and domestic transport
ATO ID 2001/272: GST and supplies made to resident of an external Territory
ATO ID 2001/456: Capital Gains Tax: Non-resident: Necessary connection with Australia
ATO ID 2001/731: CGT-Deceased Estate - Cost base of CGT asset - legal costs to representing a
family member who had been assaulted.
ATO ID 2002/1035: GST and supply of container storage and handling services to a non-resident
ATO ID 2003/702: GST and entitlement to input tax credits for acquisitions from unregistered
ATO ID 2003/858: GST and supply of services to the overseas branch of an Australian company
ATO ID 2003/1035: GST and legal services supplied to a non-resident insurance underwriter
ATO ID 2003/1101: GST and supply of services for the benefit of a third party outside of Australia
ATO ID 2003/1183: GST and transfer of long service leave entitlements of employees as part of a sale
of business
ATO ID 2004/34: GST and input tax credits for legal expenses incurred in unfair dismissal claim
ATO ID 2004/131: GST and reverse charging GST for training services provided by a non-resident
company to the employees of an Australian financial institution
ATO ID 2004/520: GST and arranging documentation for international transport of goods
ATO ID 2005/223: Distillation and alcohol concentration methods: cyclonic evaporator, separator,
ATO ID 2006/174: Refund of GST when supply cancelled after deregistering entity for GST from 1
July 2006
ATO ID 2006/175: GST and refunds of GST incorrectly included in the price of non-taxable supplies
from 1 July 2006

Review of the Taxation Treatment of Off-Market
Share Buybacks
Released 16.7.07

The Board of Taxation has released a discussion paper on the Review of the Taxation Treatment of
Off-Market Share Buybacks. The purpose of the review is to help the Government to determine
whether the taxation treatment of off-market share buybacks should be changed from the current
regime. The discussion paper paper provides some background to the framework under which
off-market share buybacks operate in Australia; outlines the tax treatment of off-market share buybacks
for various types of shareholders; and examines various issues in relation to the terms of reference for
the review.

Ombudsmans Report 2006
The Tax Ombudsman has released the 2006 report of his activities. In 2006, the Ombudsman received
1,415 complaints about the Tax Office, compared with 1,548 in 2005. The report says this suggests a
trend in the last few years of a levelling off in ATO complaint numbers. This has dropped from record
highs during the introduction of the new tax system and the difficulties over the tax treatment of mass-
marketed investment schemes. The complaints covered a range of areas and ATO activities.

Disclosure of Unreported Income
Released 18.7.2007

The Commissioner of Taxation has announced an initiative encouraging taxpayers to come forward and
make disclosures of unreported income from offshore activities. Taxpayers who contact the Tax Office
before they are the subject of an audit and make a full and true disclosure will have reduced shortfall
penalties. It was also announced that the Commonwealth DPP has indicated that "an indemnity from
criminal prosecution may be granted in certain circumstances".

In related news, it emerged a day later that well known music personality Glenn Wheatley was the first
person convicted under Operation Wickenby. Mr Wheatley was handed a 2 1/2 year jail sentence with
15 months suspended as a result of tax evasion and money laundering using offshore structures.

Appeals Update
Egglishaw v Australian Crime Commission [2007] FCA 939: The taxpayer has appealed to the Full
Federal Court. The Federal Court had dismissed an attempted review of the Australian Crime
Commission's decision to refuse a request by him to be provided with a copy of his computer hard
drive pursuant to s 3N of the Crimes Act 1914.

DCT v Gail Freeman & Co Pty Ltd [2007] FCA 1003: The taxpayer has appealed to the Full Federal
Court after the Commissioner's application to wind up the taxpayer had been granted.

Tax Cases
AAT Case [2007] AATA 1550, AAT, 16 July 2007: The AAT has held that the sale of food with non-
food promotional items attracted GST. The Tribunal held that the supply of the packaged product was a
mixed supply for consideration. The Tribunal held that as the promotion item was part of each supply,
each supply is partly subject to GST.

FCT v R & D Holdings Pty Ltd [2007] FCAFC 107, 13 July 2007: The Full Federal Court
has confirmed that because of a change in the shareholding of a taxpayer, the company was not entitled
to a deduction for losses which had been transferred to it by another company. The other
company belonged to the same wholly owned group as the taxpayer. The court did find that the tax
losses transferred by that other company to the taxpayer were able to be recouped by the taxpayer in
the 1997 income year. The Court also concluded that penalty tax was properly imposed for the 1998
and 1999 income years.

ABB Australia Pty Limited v FCT [2007] FCA 1063, 20 July 2007: Federal Court has held that a non-
resident company was liable for withholding tax in respect of a $49m dividend payment it was entitled
to receive from its Australian subsidiary . The applicant had sought a declaration that the payment was
not subject to withholding tax on the grounds that only one payment had been made and that this
payment had not been made to a non-resident entity.

Progress of Legislation
As at 20.7.07

Bill                Intro       Passed      Intro      Passed       Date of           Description
                    House       House       Senate     Senate       Royal assent
                                                                    / Act
International       29.3.07                                                          Treaties with
Tax Agreements                                                                       France and Norway
Amendment Bill
(No 1) 2007

Tax Laws            21.6.07                                                           Foreign tax
Amendment                                              .                             credit
(2007 Measures                                                                       quarantining rules
No 4) Bill 2007                                                                      , Trustee
                                                                                     reporting, Family
                                                                                     trust elections,
                                                                                     Investment in
                                                                                     warrants by super
                                                                                     funds, Simpler
                                                                                     super, Deductible
                                                                                     Gift recipients
Taxation            21.6.07
(Trustee                                               .
Tax) Bill (No 1)
Taxation           21.6.07
(Trustee                                      .
Tax) Bill (No 2)
International      21.6.07                                             Treaty with
Tax Agreements                                .                        Finland
Amendment Bill
(No 2) 2007
Superannuation     21.6.07                                             Commonwealth
Legislation                                   .                        Superannuation
Amendment Bill
These notes are in summary form designed to alert clients to tax developments of
general interest. They are not comprehensive , they are not offered as advice and
should not be used to formulate business or other fiscal decisions.

Liability limited by a scheme approved under Professional Standards Legislation.
Legal notices | Privacy notice | Anti-Spam notice | Back to top

To top