26 March 2012
In this week’s Tax highlights:
- Cases: The Full Federal Court handed down the following major decisions last week:
- Part IVA: Dismissing the Commissioner’s appeal, the Full Federal Court has held in Commissioner of Taxation v Futuris Corporation Limited that the taxpayer did not obtain a ‘tax benefit in connection with a scheme’ that resulted in the capital gain made by the taxpayer from the sale of a subsidiary being reduced by approximately $83 million and, accordingly, the general anti-avoidance provisions of Part IVA did not apply
- Share buy-back: Contrary to the decision at first instance, the Full Court has held in Consolidated Media Holdings Ltd v Commissioner of Taxation that consideration for a share buy-back was a deemed dividend and not capital proceeds sourced from a share capital account.
- Shipping reforms introduced: Tax Laws Amendment (Shipping Reform) Bill 2012 and related bills have been introduced into the House of Representatives proposing a range of tax incentives for the shipping industry, including an income tax exemption, accelerated depreciation for eligible vessels, and a new seafarer tax offset for employers.
- Minerals Resource Rent Tax (MRRT) Bill passes Parliament: The MRRT Bill 2011 and related Bills have passed the Senate and now await Royal Assent.
Plus we provide our synopsis of the latest tax-related cases, legislative developments, announcements, ATO information and releases, and international tax developments.