Vol 23 No 1
Issued
01 Feb 2011

TIB - February 2011

Binding rulings

  • Public rulings BR Pub 10/01 – 10/05: Australian Limited Partnerships
  • Public ruling BR Pub 10/21: Interest repayments required as a result of the early repayment of a financial arrangement – deductibility

New legislation

  • Taxation (GST and Remedial Matters) Act 2010
  • Orders in Council
  • Use-of-money interest rates change
  • Minimum family tax credit income amount increased

Standard practice statements

  • Industry-specific balance date for kiwifruit orchardists

Legislation and determinations

  • Special Determination S17: Utilisation of a profit emerging basis for purchased debt ledgers by a certain New Zealand Company Limited
  • Determination DEP 76: Tax depreciation rates

Legal decisions – case notes

  • Who is liable for GST, the receiver or the partnership?
  • Supreme Court denies leave to appeal
  • Taxpayer entitled to discontinue a test case
  • As a general rule, insolvent companies should be liquidated

Questions we’ve been asked

  • QB 10/06: Elections for qualifying company status

Items of interest

  • Review of Public Information Bulletins

 

Corrections

The first paragraph at the top of page 48 should read as follows (emphasis added to show changes):

LAQCs with an early balance date of, for example, 31 December 2011, choosing not to transition but to use the QC rules will have loss attribution for their income year ended 31 December 2011 but will no longer be able to attribute losses for their income year starting on 1 January 2012.


The definition of “deductions” in the loss limitation formula for the look-through company rules on page 53 has been clarified to include the current tax year for an owner’s share of capital loss amounts in the formula. The definition on page 53 should be read as follows (emphasis added to show changes): deductions is the owner’s share of the LTC’s deductions in the preceding tax years, and capital losses in the current and preceding years (in which the company was an LTC).


Under “Remedial items” in the commentary for “Consequential R&D amendments”, the first bullet point in Example 2 on page 85 should read: “It may treat the payments as income. If this is the case, section CX 47 will apply and treat the amount as exempt income …” (emphasis added to show change).