11 April 2012
In this week’s Tax highlights we feature:
- Cases - 'payment by direction': In Quality Publications Australia Pty Limited v Commissioner of Taxation, the Federal Court has held that the taxpayer was correctly treated as having received $4.1 million as capital proceeds on the sale of its publishing business, on the basis that a ‘payment by direction’ under an agreement between the purchaser and a third party did not affect the amount of money the taxpayer was entitled to receive on the disposal.
- Rulings: TR 2012/D1 sets out the Commissioner’s preliminary view on the meaning of the phrase ‘income of the trust estate’ for the purposes of the rules governing the tax treatment of trusts, stating that its meaning will depend principally on the terms of each trust and the general trust law.
- Cases: In a busy week at the courts, judgments handed down include:
- Shortfall interest charge (SIC): TD 2012/2 states that the SIC is incurred in the year of income in which the Commissioner gives a taxpayer a notice of amended assessment.
- GST – loyalty programs: GSTR 2012/1 sets out the Commissioner’s views on the GST implications of certain loyalty programs: the accrual and redemption of points by members, provision of rewards, and payments to/from program partners
Plus we provide our synopsis of the latest tax-related cases, legislative developments, announcements, ATO information and releases, and international tax developments.