• Consolidations – Project Refresh

    Consolidating rulings will mean that views currently spread across a number of rulings (and ATO interpretative decisions where relevant) will be combined into a single ruling. This will provide a comprehensive view of a particular issue.

    The consolidation will include other changes, such as contemporary examples and updates to legislative and case references.

    The following ATO interpretative decisions (ATO ID) may be consolidated under Project Refresh. You are invited to comment on these consolidations by 29 September 2017. This can be done by email.

    This consolidation is being carried out incidentally to reviewing TD 2006/25.

    ATO IDs to be consolidated

    Description

    ATO ID 2009/110

    Income tax: Self Managed Superannuation Funds: exchange traded options – tax treatment of premiums receivable

    ATO ID 2009/111

    Income tax: Self Managed Superannuation Funds: exchange traded options – tax treatment of premiums payable

    ATO ID 2010/7

    Income tax: Self Managed superannuation funds: tax treatment of futures contracts

    The following consolidation was previously listed but has been extended to incorporate TD 94/39, TD 94/65 and TD 94/87. You are invited to comment on these consolidations by 29 September 2017. This can be done by email.

    Rulings to be consolidated

    Description

    IT 2450

    Income tax: recognition of income from long term construction contracts

    TD 92/131

    Income tax: property development: are tender costs to be included in the 'estimated profits basis' calculation under Taxation Ruling IT 2450 and spread over the life of a long-term construction contract, or are they deductible under subsection 51(1) of the Income Tax Assessment Act 1936 in the year in which they are incurred?

    TD 92/186

    Income tax: property development: can a construction contract which runs for less than twelve months be regarded as a long-term construction contract for the purposes of Taxation Ruling IT 2450?

    TD 94/39

    Income tax: property development: can costs incurred and income derived under the terms of a long-term construction contract be returned on a completed contract basis?

    TD 94/65

    Income tax: property development: is a 'management reserve' taken into account in calculating notional taxable income under the estimated profits basis of returning income from a long term construction contract?

    TD 94/87

    Income tax: property development: where the estimated profits method of recognising income from long-term construction contracts (Taxation Ruling IT 2450) is adopted, how is an estimated 'ultimate loss' arising under a contract to be recognised?

     

    Rulings to be consolidated

    Description

    TD 2006/4

    Income tax: can an Australian resident entity which keeps its 'accounts' predominantly in a foreign currency, choose to use that foreign currency as its 'applicable functional currency', where the entity is required to prepare financial statements in Australian dollars for statutory reporting purposes?

    TD 2006/7

    Income tax: can an Australian resident company required to prepare financial reports under section 292 of the Corporations Act 2001 make a choice to use the 'applicable functional currency' under section 960-60 of the Income Tax Assessment Act 1997, if it is the head company of a consolidated group?

    TD 2006/8

    Income tax: can a 'small proprietary company', not required to prepare reports under section 292 of the Corporations Act 2001 , make a choice to use the 'applicable functional currency' under item 1 of the table in subsection 960-60(1) of the Income Tax Assessment Act 1997?

    TD 2007/24

    Income tax: is the 'applicable functional currency' for the head company of a consolidated group determined by looking at the 'accounts' of all the members of the consolidated group, for the purposes of item 1 of subsection 960-60(1) of the Income Tax Assessment Act 1997?

    The following consolidations are being progressed through Project Refresh:

    Rulings to be consolidated

    Description

    TD 2

    Capital gains: what are the CGT consequences for the lender (Creditor) when a debt is waived?

    TD 3

    Capital gains: what are the CGT consequences for the borrower (debtor) when a debt is waived?

    TD 93/237

    Income Tax: capital gains: section 160A and subsections 160M(6) and 160M(7) of the Income Tax Assessment Act 1936 were amended by Taxation Laws Amendment Act (No 4) 1992 with the effect from 25 June 1992. Will these amendments have an effect on the views expressed in Taxation Determinations TD 2 and TD 3 in respect of debt waivers?

     

    Rulings to be consolidated

    Description

    TR 93/35

    Income tax: medicare levy payable by persons entitled to full free medical treatment: dependants for medicare levy purposes

    TR 93/37

    Income tax: Medicare levy – Defence Force personnel on overseas postings

    TD 92/168

    Income tax: is a resident merchant seaman, in receipt of full medical cover on board an Australian ship for a specified period of the year, entitled to a Medicare Levy exemption for that period?

    TD 93/103

    Income tax: is a 'prescribed person' liable for half the medicare levy if that person maintains a spouse who is not a 'prescribed person'?

     

    Rulings to be consolidated

    Description

    TD 2006/4

    Income tax: can an Australian resident entity which keeps its 'accounts' predominantly in a foreign currency, choose to use that foreign currency as its 'applicable functional currency', where the entity is required to prepare financial statements in Australian dollars for statutory reporting purposes?

    TD 2006/7

    Income tax: can an Australian resident company required to prepare financial reports under section 292 of the Corporations Act 2001 make a choice to use the 'applicable functional currency' under section 960-60 of the Income Tax Assessment Act 1997, if it is the head company of a consolidated group?

    TD 2006/8

    Income tax: can a 'small proprietary company', not required to prepare reports under section 292 of the Corporations Act 2001 , make a choice to use the 'applicable functional currency' under item 1 of the table in subsection 960-60(1) of the Income Tax Assessment Act 1997?

    TD 2007/24

    Income tax: is the 'applicable functional currency' for the head company of a consolidated group determined by looking at the 'accounts' of all the members of the consolidated group, for the purposes of item 1 of subsection 960-60(1) of the Income Tax Assessment Act 1997?

     

    Rulings to be consolidated

    Description

    IT 2199

    Income tax : allowable deductions : travelling expenses between place(s) of employment and/or place(s) of business

    IT 117

    Travelling expenses – between home and employment

    TD 96/42

    Income tax: is the cost of travel between a taxpayer's residence, being a property on which the taxpayer carries on a business of primary production, and a place of employment or business, deductible?

     

    Rulings to be consolidated

    Description

    IT 2417

    Income tax: imputation of company tax: form approved by Commissioner of Taxation for issue to shareholders receiving dividends

    TD 2006/21

     

     

    Income tax: consolidation: imputation: which entity in a MEC group is responsible for meeting obligations imposed by Part 3-6 (the imputation provisions) of the Income Tax Assessment Act 1997 in relation to a frankable distribution made to members outside the group by an eligible tier-1 company in the group that is not the provisional head company?

    TR 93/40

    Income tax: imputation of company tax: form approved by Commissioner of Taxation for issue to shareholders receiving dividends for 1994-95 and later franking years

     

    Rulings to be consolidated

    Description

    TD 92/148

    Income tax: capital gains: is there a disposal and an acquisition where joint owners of a block of land subdivide that land into two smaller blocks with each owning one block?

    TD 7

    Capital gains: what are the CGT consequences of sub-dividing pre-CGT land?

     

    Rulings to be consolidated

    Description

    IT 2204

    Income tax: deductibility of interest payable on convertible notes

    IT 2334

    Income tax: convertible notes – meaning of convertible note, note and related instruments

    IT 2427

    Income tax: convertible notes – meaning of convertible note, note and related instruments

    IT 2657

    Income tax: deductibility of interest payable on convertible notes

    TD 92/160

    Income tax: must a loan which is evidenced, acknowledged or created by a convertible note have a specified maturity date for the note to come within section 82SA of the Income Tax Assessment Act 1936?

     

    Rulings to be consolidated

    Description

    IT 2437

    Income tax: foreign tax credit system – foreign taxes eligible for credit against Australian income tax

    IT 2507

    Income tax: foreign tax credit system – foreign taxes eligible for credit against Australian income tax

    TR 93/4

    Income tax: foreign tax credit system: treatment of worldwide unitary taxes and water's edge unitary taxes

     

    Rulings to be consolidated

    Description

    TR 94/29

    Income tax: capital gains tax consequences of a contract for the sale of land falling through

    TR 1999/19

    Income tax capital gains: treatment of forfeited deposits

     

    Rulings to be consolidated

    Description

    IT 2561

    Income tax: capital gains: grants of easements, profits a prendre and licences

    TD 93/79

    Income tax: capital gains: if a taxpayer owns pre-CGT land and trees and after 19 September 1985 the taxpayer cuts the trees, are there any CGT consequences arising from the subsequent sale of the timber by the taxpayer?

    TD 93/81

    Income tax: capital gains: a taxpayer owns pre-CGT land and trees. The taxpayer sells timber according to two post-CGT contracts – a contract for granting the purchaser of the timber the right to enter the taxpayer's property over a period of time and remove timber as and when required; and a contract for the sale of the uncut timber. How is the sale treated for capital gains tax purposes?

    TD 93/235

    Income tax: capital gains: how are grants of easements treated for the purposes of the capital gains tax (CGT) provisions of the Income Tax Assessment Act 1936?

    TD 93/236

    Income tax: capital gains: does the principal residence exemption apply to the amount received for the granting of an easement or profits a prendre over land adjacent to a dwelling?

    TD 96/35

    Income tax: capital gains: when does a person, who on or after 21 September 1989 grants to another a right to cut and remove timber from the grantor's land, dispose of the right? Is it when the right is granted or when the trees are felled?

    Last modified: 15 Sep 2017QC 50452