To include or not to include, that is the question

The Australian Taxation Office (ATO) published Taxation Determination 2020/7 (the Determination) on 26 August 2020. The Determination provides guidance as to whether capital gains should be included in calculating the foreign income tax offset (FITO) limit under subparagraph 770-75(4)(a)(ii) of the Income Tax Assessment Act 1997 (the Act).

The Determination confirms the ATO’s view that untaxed capital gains are not captured in the calculation of the FITO limit.

No more deductions when it comes to vacant land

Before 1 July 2019, taxpayers that held vacant land were allowed a tax deduction if the land was used for income producing purposes or if they were carrying on a business.

However, on 28 October 2019 the Bill introducing the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No.1) Act 2019 (the Act) received Royal Assent, which changed the deductions allowed for by the Commissioner. Under the Act, deductions that relate to holding vacant land are disallowed if the land is not available for rent or used in carrying on a business.

Was there or wasn’t there? – Carter v Commissioner of Taxation [2020] FCAFC 150

The Full Federal Court on 10 September 2020 allowed an appeal against an unreported Administrative Appeals Tribunal (AAT) decision in The Trustee for the Whitby Trust and FCT [2019] AATA 5637.

GST win for casino operators

Justice Davies of the Federal Court handed down judgement in the case of Crown Melbourne Limited v Commissioner of Taxation [2020] FCA 1295 on 10 September 2020.

Davies J held that commissions and rebates paid by Crown Melbourne and Burswood Nominees (Taxpayers) under agreements with junket tour operators should be taken into account in working out the taxpayers’ global goods and services tax (GST) amounts for the purposes of the special GST rules set out in Division 126 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) governing gambling supplies.