Issue 180 - 14 August 2008

	Issue 180, 14 August 2008 Welcome to the latest issue of Thomson's Tax & Accounting Insight, your free news service for tax and accounting professionals. Tax & Accounting Insight is the easy way to keep up with the latest developments in your industry. Watch your inbox for your fortnightly issue of this free, informative service from Thomson.		Articles in this edition include: GST margin scheme case - ATO Decision Impact Statement SMSF and Sole Purpose Test Tax Office Compliance Program for 2008-09 - FBT focus areas are highlighted Thomson Tools Editorial Enquiries: Tel: 1300 304 197 LRA.Service@thomson.com Copyright: Thomson Legal & Regulatory Limited ABN 64 058 914 668 100 Harris Street Pyrmont NSW 2009 All rights reserved. To subscribe, please click here. To unsubscribe, please reply to this email with Unsubscribe in the heading. Disclaimer: The information contained in this bulletin neither represents nor is intended to be legal or professional advice. While every care has been taken in its preparation, no person should act specifically on the basis of the material contained herein. If expert assistance is required, competent professional advice should be obtained. Privacy Policy
	GST margin scheme case - ATO Decision Impact Statement The Tax Office has released a Decision Impact Statement [Tue 12.8.2008] on the Full Federal Court decision in Brady King Pty Ltd v FCT [2008] FCAFC 118. In that decision, the Full Court allowed the taxpayer's appeal and held that the margin scheme for the supply of the stratum units in question was to be calculated under s 75-10(3) of the GST Act. In doing so, the Full Court also remitted the matter back to the trial judge to determine the margin for the supply of the units. The Tax Office said it "considers that the Court's decision is authority for the proposition that, for the purposes of s 75-10 and s 75-11 of the GST Act, an entity supplying relevant property is taken to have held or acquired a sufficient interest in that property at a particular time if it had entered into, but not completed, a contract for its acquisition". However, the Tax Office noted that it does not consider that it follows from the decision that a supply or acquisition of the relevant property itself occurs at the time of entry into a contract for the sale and purchase of that property. The Tax Office said it continues to consider that a supply and acquisition of land under a standard land contract occurs upon completion of the contract. The Tax Office said the Commissioner will not apply for special leave to appeal to the High Court against the decision of the Full Court. However, the Tax Office said it will continue to submit that the valuation does not comply with MSV 2 and will update its Decision Impact Statement when the decision of the trial judge in relation to that issue is finalised. Further, the Tax Office said GST Rulings GSTR 2006/7 and GSTR 2006/8 will be amended to reflect the reasoning of the Full Court. This article appeared in Thomson's daily Latest Tax News (Tuesday 12th August). With tax fast-moving and ever changing - EVERY DAY, practitioners rely on Thomson's daily Latest Tax News for quick, accurate, comprehensive information - no compromises. When you need to know what's new in tax and related news every day, there's only one place to look - LTN. To find out more, call Thomson Customer Support on: 1300 304 197. Return to TOP
	SMSF and Sole Purpose Test The Tax Office has also released an SMSF Ruling, which outlines the Commissioner's approach to the application of the sole purpose test in the superannuation legislation. The objective of the sole purpose test is to limit the provision of superannuation benefits to a range of prescribed retirement or retirement-related circumstances, such as on or after a member retiring or attaining 65 years of age. Where an SMSF is maintained for other purposes, it will contravene the sole purpose test. The Tax Office says that determining the purpose for which an SMSF is being maintained requires a survey of all of the events and circumstances relating to its maintenance. The Ruling notes that investments such as works of art, antiques, classic cars and wine will, generally, pose particular issues in relation to the application of the sole purpose test. TIP: While investments in collectables are not prohibited per se, an SMSF wanting to invest in such investments will need to ensure that the fund's deed permits it and the trustee must show how acquiring these assets will satisfy the sole purpose test. This article appeared in Thomson's Client Alert Newsletter Service. Client Alert is a monthly newsletter that promotes your business and develops your client's awareness of upcoming tax issues. To find out more, phone Thomson Customer Service on 1300 304 197 or click here. Return to TOP
	Tax Office Compliance Program for 2008-09 - FBT focus areas highlighted On 13 August 2008, the Commissioner launched the Tax Office Compliance Program for 2008-09 which sets out the Tax Office's compliance priorities for that year. The Commissioner said the Tax Office is expanding its coverage of tax compliance issues across the board with the assistance of additional government funding. FBT-related areas in the compliance program include: Small to medium enterprises (SMEs): In relation to FBT and income tax compliance activities, the Tax Office said it plans to undertake 595 reviews and 370 audits of SMEs. The Tax Office said it will also contact 1,300 SMEs by letter or phone to verify specific income tax and FBT issues. The Tax Office said the correct FBT treatment of business-owned motor vehicles continues to be an area of focus, particularly in relation to the private use of vehicles and the provision of luxury vehicles to business principals. The Tax Office also noted that its data-matching activities will help identify high-risk employers for further compliance action. Non-profit organisations: The Tax Office's focus this year will be on raising awareness of the correct FBT treatments and obligations that flow from the entities' endorsed status. Government organisations: The Tax Office says it plans to review and update a better practice guide developed in conjunction with the Australian National Audit Office (ANAO) for Government organisations in relation to FBT obligations. The news and commentary in this alert have been drawn from Thomson's Alert24 service. For more content and the ability to customise frequency and format, call your Account Manager or Customer Service today on 1300 304 197. This article appeared in Thomson's Alert24, 13th August 2008. Alert24 is Thomson's current awareness service, providing all the latest Legal and Regulatory developments in key areas of practice. Each day, subscribers receive an email detailing the latest cases, legislation, news and policy updates so you stay informed. To subscribe or find out more, click here. Return to TOP
	Thomson Tools What's New Australian Tax Handbook Tax Return Edition Thomson Tax Examples Income Tax & GST Strategies Manual Coming Soon Australian Financial Planning Handbook Australian GST Handbook 2008-09 Australian Superannuation Handbook Thomson Reuters' Workshops & Conferences SMSF Workshop (Brisbane) - Last chance to register Time is running out to register your attendance at the Self Managed Super Funds Workshop in Brisbane on 25 August 2008. This workshop will help you understand your requirements and reduce the risk of penalty especially at a time when auditors are under the ATO's microscope. The Sydney & Melbourne workshops are now sold out. Don't miss your chance to attend in Brisbane. Please call 1300 304 197 or click here to book your seat or for further information. Practical Payroll Workshops - earn 6.25 CPD/CPE points! Whether you're new to payroll or want to brush up your payroll knowledge, this practical course teaches technical payroll skills and fills common gaps in knowledge and procedures. Brisbane: 4 September Sydney: 18 September Melbourne: 16 October SPECIAL OFFER: Attend both the Practical and Advanced Payroll Workshops and SAVE $100.00! To book your seat, for more information or for a full workshop program guide, please click here. Thomson Reuters Inaugural Tax Conference - The State of Play Address today's most pressing tax challenges in the face of change and system-wide reform. By taking a holistic approach to business and tax reform challenges, this conference will explore topics such as: The current and future state of GST Developments in CGT and superannuation Better preparation and management of tax audits, dispute resolutions and settlements Date: 15-16 September 2008 Venue: L'Aqua, Sydney To book now or for further information, please visit www.thomsonreuters.com.au/tax08 or call 1300 304 195. Return to TOP