Overview

The A New Tax System (Goods and Services Tax) Waiver of Tax Invoice Requirement Determination (No. 1) 2001 was introduced to address the issue of easing administrative burdens on businesses using corporate credit cards by allowing them to attribute input tax credits to tax periods without requiring a tax invoice under certain conditions. Enacted under the authority of the A New Tax System (Goods and Services Tax) Act 1999, this legislative instrument aims to streamline the tax compliance process for corporate cardholders by allowing the use of corporate card statements as an alternative to tax invoices, provided specific criteria are met. The determination was made by the Commissioner of Taxation, with the policy objective to facilitate easier tax credit attribution for corporate card transactions while ensuring compliance and preventing abuse of the tax system.

Scope and Application

This determination applies to members of the OFFICEWORKS corporate card under the A New Tax System (Goods and Services Tax) Act 1999. Specifically, it concerns the waiver of the requirement for a tax invoice in certain circumstances for the purpose of attributing input tax credits. This applies to entities that are members of the OFFICEWORKS corporate card and who are involved in transactions for which they claim input tax credits. The geographic and jurisdictional reach of this determination is confined to the Commonwealth of Australia, as it is a legislative instrument made under the authority of the Australian federal government. The determination does not extend or alter any previous rulings made by the Commissioner and it came into effect on the commencement date of the A New Tax System (Goods and Services Tax) Act 1999. It is important to note that while the primary legislation applies nationally, this determination specifically tailors its application to members of the OFFICEWORKS corporate card. The exclusions and conditions outlined in the determination ensure that certain members are exempt from the usual requirement to hold a tax invoice, provided they meet the criteria such as holding a corporate card statement that includes detailed transaction information and having an effectively regulated corporate policy for making adjustments for private or domestic expenditures.

Key Provisions

This determination, under the A New Tax System (Goods and Services Tax) Act 1999, establishes a waiver of the tax invoice requirement for members of the OFFICEWORKS corporate card. The waiver applies to the acquisition of goods and services when certain conditions are met. Specifically, under section 4, a member of the OFFICEWORKS corporate card will not be required to hold a tax invoice to attribute an input tax credit to a tax period if they hold a corporate card statement from GE Capital Finance Australia. This statement must include detailed information about the acquisition such as the member's name, the person using the card, the member's ABN or address, the date of purchase, the supplier's details, a description and quantity of the supply, the GST-inclusive amount, and the amount of GST paid. Additionally, the member must adhere to an effectively regulated corporate policy for making adjustments for private or domestic expenses and provide supplementary documentary evidence for any private or domestic components of the acquisition. The obligations imposed by this determination include the necessity for members to maintain accurate records and supplementary documentary evidence to support their claims for input tax credits. They must ensure that their corporate card statements include all the specified details and that any private or domestic expenses are clearly identified and separated from business expenses. The member is also responsible for ensuring that the corporate policy for managing card expenses is effectively regulated and that any errors on the card statement are rectified before claiming input tax credits. Furthermore, the card issuer, GE Capital Finance Australia, must provide the date of purchase for each supply on the statement, as stipulated in section 4(d). Failure to comply with the requirements of this determination can lead to significant consequences. Under the A New Tax System (Goods and Services Tax) Act 1999, there are penalties for non-compliance which can include substantial fines. For instance, under section 28-5 of the Act, if a person fails to provide a tax invoice or a statement as required, they may be liable for a penalty of up to 25% of the amount of GST that should have been shown on the invoice or statement. Additionally, repeated or serious non-compliance can result in criminal charges, leading to further penalties such as imprisonment, as outlined in section 28-10 of the Act. It is crucial for members and their card issuer to adhere strictly to the provisions to avoid these potential penalties.