Vol 4 No 8
Issued
01 Apr 1993

TIB - April 1993

Policy Statements

  • Qualifying Companies - Market values for QCET purposes
  • Qualifying Companies - Crediting QCET to the ICA
  • Policies we're reviewing
  • Shareholder-employees and FBT on company vehicles
  • Tax treatment of employee home telephone costs
  • Stamp duty on forest sales
  • Taxation of clubs, societies, etc

Questions we've been asked

  • Income Tax Act 1976 
  • Goods and Services Tax Act 1985 
  • Stamp and Cheque Duties Act 1968 

Legal Decisions - Case Notes

  • TRA No.92/118:  expenditure incurred in course of taxable activities, preparatory expenditure, fixed and circulating capital, purchases on revenue account
  • TRA No.91/160:  real estate salespersons, independent contractor, employee
  • Hadlee and Sydney Bridge Nominees Ltd v CIR:  assignment of income, partnership, personal services income
  • TRA No.92/171:  taxpayer acting as trustee, issue of who derived the income, credibility of witness
  • TRA No. 92/59: penal tax, withdrawal of case
  • TRA No.92/40:  real estate salesperson, independent contractor, employee
  • L.R. McLean and others v CIR:  secondhand goods
  • Green and Waugh v Housden and Simcock:  production of documents, scope of demand,  administration and enforcement, extent of powers

Corrections

This item corrects an example in the item on stamp duty and forest sales, which appeared on page 5 of TIB Volume Four, No.8 (April 1993). The example omitted to show that stamp duty was levied on the GST-inclusive value of the transaction. The correct treatment is:

(2) SilviCo Ltd purchases the registered forestry right in a block of land planted in four year old eucalyptus botryoides with the intention of milling them for hardwood in twenty five years. The purchase price is $23,000 plus GST (i.e., $25,875.00 including GST).

The annual payment for the forestry right is $3,000 (i.e., $3,375.00 including GST).

Conveyance duty at $1.00 per $100 or part thereof is levied on the GST-inclusive purchase price ($259.00); and 

Lease Duty of $0.40 per $100 or part thereof is levied on the GST inclusive maximum annual payment for the forestry right ($13.60).

The total stamp duty payable is $272.60.