Consultations listing

This question we’ve been asked considers whether a lessee farmer, who carries on a farming business on leased land, can deduct the remaining diminished value (the tax book value) of the expenditure incurred on planting horticultural plants in the income year the lease on the farmland ends.

Under subpart DO, a purchaser of farmland with Farmland Improvements and listed horticultural plants who carries on a farming business on the land is allowed an annual amortisation-like deduction of the diminished values of the improvements and plants. The opening tax book values for the purchaser is the seller‘s tax book values for the improvements and plants at the beginning of the income year of the sale. This question we’ve been asked considers whether the purchase price allocation rules alter this treatment. It concludes that they do not.

This question we’ve been asked considers whether a major change in the nature of a contractor’s business activities occurs under the business continuity test for losses when a public private partnership project moves from a design and construction phase to an operating and maintenance phase.

Please note updated summary: This QWBA confirms that the business continuity test is not breached when a standard PPP project transitions from the design and construction phase to the operation and maintenance phase. Accordingly, a corporate PPP contractor may rely on the business continuity test to carry forward losses incurred during the design and construction phase, even if shareholder continuity is breached during that phase.

The Commissioner is seeking public feedback on the update and replacement of the existing interpretation statements on the shortfall penalties for not taking reasonable case, taking an unacceptable tax position and gross carelessness. The existing items are still technically correct but are being updated for a number of legislative changes and new case law. Examples have also been updated and additional examples provided. Guidance on the “tax position” and “tax shortfall” requirements relevant to all shortfall penalties has been included in a new separate interpretation statement, as has the guidance on reductions and other matters common to all shortfall penalties. These matters were previously discussed (in varying detail) in each of the existing interpretation statements. Main changes to the current items include: the circumstances in which a taxpayer who uses a tax agent will be treated as having taken reasonable care have been prescribed in the legislation. the removal of GST and withholding-type taxes from the scope of the unacceptable tax position shortfall penalty. A reading guide with more details on the main changes is provided.

This draft interpretation statement discusses the requirements that must be met for a registered person to claim a secondhand goods input tax deduction. This includes, among other things, a discussion of the requirement that the goods be secondhand and the meaning of secondhand. This interpretation statement also discusses exceptions and restrictions on the amount of secondhand goods input tax deduction that can be claimed, including where the supplier and the recipient are associated persons. The fact sheet GST – Meaning of secondhand supports the interpretation statement by summarising the meaning of secondhand. The fact sheet GST – Secondhand goods input tax deduction requirements – summary supports the interpretation statement by summarising the requirements.

This interpretation statement discusses the meaning of “payment” for GST purposes. The meaning of payment is relevant for determining the time of supply, the tax period for which you return output tax or for which you claim an input tax deduction, and eligibility for a secondhand goods input tax deduction.