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                <title>NTLG FBT Sub-committee</title>
                <guid>http://www.taxinstitute.com.au/news/ntlg-fbt-sub-committee4</guid>
                <link>http://www.taxinstitute.com.au/news/ntlg-fbt-sub-committee4</link>
                <description><![CDATA[ 
Last Thursday, 16 February 2012, Greg Kent FTIA (PwC) and David Manton FTIA (E&amp;Y) attended a meeting of the NTLG FBT Sub-committee.
At this meeting, participants discussed a number of issues, including:

The FBT lodgment program for tax agents for the 2011-12 FBT year. Tax Agents are expected to be advised by the ATO in writing during March 2012.
An update on the consultation process regarding Consultation Paper "Fringe Benefits Tax (FBT) Reform Living-away from home benefits".. 
The recent case of Yip and FCT [2011] AATA 785 and the ATO's views on salary sacrifice arrangements, especially given Deputy President Forgie's comments.
The process for additions to the remote/non-remote overseas areas list on the ATO website. 
The otherwise deductible rule for business travel costs where there is an accompanying spouse. 
The ATO's FBT compliance activities, including the compliance campaign in respect of LAFHA, not-for-profits, in-house and exempt benefits and exempt cars/other vehicles.

Members who seek further detail in relation to any aspect of the above are encouraged to contact us at Tax Policy.
... ]]></description>
                <pubDate>Fri, 24 Feb 2012 09:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>Submissions to Treasury: Disclosure of superannuation information</title>
                <guid>http://www.taxinstitute.com.au/news/submissions-to-treasury-disclosure-of-superannuation-information</guid>
                <link>http://www.taxinstitute.com.au/news/submissions-to-treasury-disclosure-of-superannuation-information</link>
                <description><![CDATA[ 
Treasury advises that it received 4 submissions in response to the exposure draft on the disclosure of superannuation information measure and the accompanying explanatory materials released on 14 February 2012. Three of these submissions were public and are accessible here
&nbsp;
... ]]></description>
                <pubDate>Wed, 22 Feb 2012 09:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>Small business benchmarks</title>
                <guid>http://www.taxinstitute.com.au/news/small-business-benchmarks</guid>
                <link>http://www.taxinstitute.com.au/news/small-business-benchmarks</link>
                <description><![CDATA[ 
The ATO has updated its small business benchmarks with data from the 2010 financial year. For details of the changes and improvements refer to Cash economy frequently asked questions.
The ATO advises that benchmarks are updated annually using the latest available income tax data.
&nbsp;
... ]]></description>
                <pubDate>Wed, 22 Feb 2012 09:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>Treasury's Strategic Tax Policy Consultation</title>
                <guid>http://www.taxinstitute.com.au/news/treasury-s-strategic-tax-policy-consultation</guid>
                <link>http://www.taxinstitute.com.au/news/treasury-s-strategic-tax-policy-consultation</link>
                <description><![CDATA[ 
For information about Treasury's Strategic Tax Policy Consultation, including a copy of the minutes of the Revenue Group stakeholder consultation meeting held 6 December 2011, attended by Robert Jeremenko, Senior Tax Counsel at The Tax Institute, go here
&nbsp;
... ]]></description>
                <pubDate>Tue, 21 Feb 2012 11:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>High risk industries targeted for superannuation obligations </title>
                <guid>http://www.taxinstitute.com.au/news/high-risk-industries-targeted-for-superannuation-obligations</guid>
                <link>http://www.taxinstitute.com.au/news/high-risk-industries-targeted-for-superannuation-obligations</link>
                <description><![CDATA[ 
The ATO advises that it is currently running an education campaign to help business owners in the cafes and restaurants, real estate services and carpentry services industries to better understand their superannuation obligations. The campaign will last 6 months. Later this year the ATO advises that it will be undertaking audits of employers who continue to not meet their super obligations for their employees.
&nbsp;
... ]]></description>
                <pubDate>Tue, 21 Feb 2012 11:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>Use of TFNs by super funds</title>
                <guid>http://www.taxinstitute.com.au/news/use-of-tfns-by-super-funds</guid>
                <link>http://www.taxinstitute.com.au/news/use-of-tfns-by-super-funds</link>
                <description><![CDATA[ 
The ATO advises that regulations dealing with the use of tax file numbers (TFNs) by super funds and retirement savings account (RSA) providers have been made and are effective from 1 January 2012.
Following the 1 July 2011 legislative amendments dealing with the use of TFNs as a primary locator, there have been further amendments to the Superannuation Industry (Supervision) Regulations 1994 and the Retirement Savings Accounts Regulations 1997.
The regulations include rules that superannuation funds and RSA providers must comply with when using a member's TFN to locate accounts, or to facilitate the consolidation of accounts held by the same person across superannuation funds or RSAs.
Specifically, the regulations require that a trustee obtain a member's consent to use their TFN to facilitate the consolidation of accounts held outside the fund or RSA by:

seeking information from an ATO service (for example, SuperMatch) 
contacting another super fund or RSA provider.

&nbsp;
... ]]></description>
                <pubDate>Tue, 21 Feb 2012 11:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>ATO address - SMSFs: audit compliance update</title>
                <guid>http://www.taxinstitute.com.au/news/ato-address-smsfs-audit-compliance-update</guid>
                <link>http://www.taxinstitute.com.au/news/ato-address-smsfs-audit-compliance-update</link>
                <description><![CDATA[ 
On Friday 17 February 2012, Stuart Forsyth, Assistant Commissioner Superannuation, gave an address entitled "SMSFs: audit compliance update" to the SMSF Professionals Association of Australia (SPAA) 2012 SMSF National Conference held in Sydney, New South Wales.
&nbsp;
... ]]></description>
                <pubDate>Tue, 21 Feb 2012 11:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>Exposure Draft - Tax incentives for the shipping industry</title>
                <guid>http://www.taxinstitute.com.au/news/exposure-draft-tax-incentives-for-the-shipping-industry</guid>
                <link>http://www.taxinstitute.com.au/news/exposure-draft-tax-incentives-for-the-shipping-industry</link>
                <description><![CDATA[ 
The Government made a commitment to reforms for the shipping industry during the Federal election campaign in August 2010.
In joint media release No 2012/009, issued 20 February 2012, the Assistant Treasurer, Minister for Small Business and Minister for Sport, Senator Mark Arbib, and the Minister for Infrastructure and Transport, Anthony Albanese, announced the release for public consultation of exposure draft legislation and associated explanatory material to give effect to the tax component of those reforms.
These proposed amendments would provide a number of tax incentives designed to revitalise the Australian shipping industry in particular circumstances. These incentives include:

an income tax exemption for ship operators;
provision for accelerated depreciation of vessels via a cap of 10 years to the effective life of those vessels;
roll-over relief from income tax on the sale of a vessel; 
an employer refundable tax offset; and&nbsp; 
an exemption from royalty withholding tax for payments made for the lease of shipping vessels.

Subject to the passage of legislation, these changes are expected to come into effect on 1 July 2012.
The closing date for submissions is Monday 5 March 2012.
&nbsp;
... ]]></description>
                <pubDate>Tue, 21 Feb 2012 10:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>High Court refuses Commissioner special leave to appeal in Part IVA case - RCI</title>
                <guid>http://www.taxinstitute.com.au/news/high-court-refuses-commissioner-special-leave-to-appeal-in-part-iva-case-rci</guid>
                <link>http://www.taxinstitute.com.au/news/high-court-refuses-commissioner-special-leave-to-appeal-in-part-iva-case-rci</link>
                <description><![CDATA[ 
The High Court (Gummow, Hayne and Heydon JJ) has refused the Commissioner special leave to appeal from the decision of the Full Federal Court in RCI Pty Limited v FCT [2011] FCAFC 104 (22 August 2011). The Full Federal Court had allowed the taxpayer's appeal from the decision of Stone J in RCI Pty Ltd v FCT [2010] FCA 939 (1 September 2010).
The question before the Full Federal Court was whether the taxpayer (RCI) obtained a tax benefit (as defined&nbsp;in s 177C ITAA 1936)&nbsp;to which Part IVA applied when it sold its shareholding in its wholly owned United States subsidiary (JHH(O)) to another company in the group (RCI Malta) as part of a corporate restructure. Prior to the sale of the shares, JHH(O) revalued its assets and paid a non-assessable non-exempt dividend of US$318m to the taxpayer, thereby reducing the value of RCI's shares in JHH(O) and thereby reducing the amount of the capital gain that RCI would otherwise have derived on the sale. The Full Federal Court held that it did not obtain a tax benefit.
The Full Federal Court said: "...in our view, if the scheme in either of its manifestations had not been entered into or carried out, the reasonable expectation is that the relevant parties would have either abandoned the proposal, indefinitely deferred it, altered it so that it did not involve the transfer by RCI of its shares in JHH(O) to RCI Malta or pursued one or more of the other alternatives referred to in the Information Memorandum; but they would not have proceeded to have RCI transfer its shares in JHH(O) to RCI Malta at a tax cost of $172 million. On this view, RCI did not obtain the tax benefit it was alleged by the Commissioner to have obtained in connection with the scheme."
On the special leave application, Counsel for the Commissioner argued that the Full Federal Court misapplied the test in s 177C ITAA 1936 regarding tax benefit.&nbsp;Counsel said:
"So from a section that asks whether there is one reasonable possibility by which the amount might have been included, bearing in mind the threshold or gatekeeper role of tax benefit, a large part of the work in this part is done by the dominant purpose test. If there is one way, according to the section, in which it might reasonably be expected that the amount might be included, then it is satisfied. The Full Court said, well, if there is one way in which it might reasonably be expected that it would not be included, then the section is not satisfied."
In dismissing the Commissioner's application, Gummow J said:
"We are not satisfied that the applicant has sufficient prospects of success in demonstrating error by the Full Court in its finding respecting the criterion in section 177C of the statute to warrant the grant of special leave. It is on that ground that special leave is refused with costs."
For a transcript of the special leave application, go here
&nbsp;
... ]]></description>
                <pubDate>Mon, 20 Feb 2012 11:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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                <title>Decision Impact Statement - Naidu Family Trust</title>
                <guid>http://www.taxinstitute.com.au/news/decision-impact-statement-naidu-family-trust</guid>
                <link>http://www.taxinstitute.com.au/news/decision-impact-statement-naidu-family-trust</link>
                <description><![CDATA[ 
The ATO has issued a Decision Impact Statement in relation to the decision of the AAT in The Trustee for the Naidu Family Trust and FCT [2011] AATA 910; 2011 ATC 10-227.&nbsp; The case concerned whether the taxpayer was liable to GST on a supply of property as mortgagee in possession.
The ATO states that the AAT's decision that the taxpayer was liable to pay GST on the supply of property is in accordance with the Commissioner's view of the operation of s 105-5 of the GST Act. The AAT finding that the supply of property took place at settlement, that is, at the time the transfer was executed, is consistent with the Commissioner's submissions to the AAT.
&nbsp;
... ]]></description>
                <pubDate>Mon, 20 Feb 2012 11:02:00 GMT</pubDate>
                <category>The Tax Institute Daily Tax News</category>
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