3 April 2012
In this week’s Tax highlights we feature:
- R&D Tax Incentive: AusIndustry has released guidance on the registration requirements for the R&D Tax Incentive, outlining information requirements and providing explanatory materials.
- Trusts – draft ruling: 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:
- Noza Holdings appeal decision: In Commissioner of Taxation v Noza Holdings Pty Ltd, the Full Federal Court has principally confirmed the decision at first instance and held that the taxpayer was entitled to a deduction for $170 million of a $220 million dividend on redeemable preference shares paid by way of endorsement of a promissory note
- Time of acquisition of asset by trust: In Healey v Commissioner of Taxation, the Federal Court has held that a beneficiary was not entitled to the capital gains tax (CGT) 50% discount in respect of the sale of shares by the trust as, pursuant to the CGT acquisition rules, the trust had acquired the shares as a transfer rather than as an acquisition, which resulted in an acquisition date within 12 months of their sale.
Plus we provide our synopsis of the latest tax-related cases, legislative developments, announcements, ATO information and releases, and international tax developments.