COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from http://ato.gov.au/law.
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
TD 1993/146 | Income tax: should a resident deduct withholding tax from interest payable under a loan from a non‑resident if there is no actual payment of the interest? | The Addendum amends Taxation Determination TD 1993/146 to update legislative references and references to Taxation Rulings. The Addendum applies on and from 22 March 2017. |
TR 1992/4 | Income tax: whether losses on isolated transactions are deductible | The Addendum amends Taxation Ruling TR 1992/4 to update the legislative references from the Income Tax Assessment Act 1936 to the Income Tax Assessment Act 1997. The Addendum applies on and from 22 March 2017. |
TR 2003/13 | Income tax: eligible termination payments (ETP): payments made in consequence of the termination of any employment: meaning of the phrase ‘in consequence of’ | The Addendum amends Taxation Ruling TR 2003/13 to update legislative references and references to Taxation Rulings. The Addendum applies on and from 22 March 2017. |
TR 2004/4 | Income tax: deductions for interest incurred prior to the commencement of, or following the cessation of, relevant income earning activities | The Addendum amends Taxation Ruling TR 2004/4 to update references to Taxation Rulings. The Addendum applies on and from 22 March 2017. |
TR 2005/12 | Income tax: deductibility of interest expenses incurred by trustees on funds borrowed in connection with the payment of distributions to beneficiaries | The Addendum amends Taxation Ruling TR 2005/12 to update references to Taxation Rulings. The Addendum applies on and from 22 March 2017. |
TR 2005/16 | Income tax: Pay As You Go – withholding from payments to employees | The Addendum amends Taxation Ruling TR 2005/16 to update references to Taxation Rulings and legislation, and case law. The Addendum applies on and from 22 March 2017. |
CR 2017/18 | Fringe benefits tax: employer clients of McMillan Shakespeare Limited and its subsidiaries who participate in the fly‑in fly‑out travel program | The Addendum amends Class Ruling CR 2017/18 to correct typographical errors in paragraphs 43 and 54. The Addendum applies on and from 15 March 2017. |
Overview
The Australian Taxation Office, through the Commissioner of Taxation, Chris Jordan, has issued an addendum to several Taxation Determinations and Rulings, which were published in the Government Gazette as C2017G00320. These amendments were enacted to update references within the rulings to the current legislation and to other relevant rulings, ensuring that the guidance provided remains accurate and compliant with the most recent legal framework. The amendments were introduced to address issues arising from changes in legislation and to rectify typographical errors within the rulings, aiming to provide clear and precise guidance to taxpayers. These updates are intended to assist taxpayers in understanding their obligations under the Income Tax Assessment Act 1997 and related Acts, ensuring they can accurately determine their tax liabilities and entitlements.
Scope and Application
The Commissioner of Taxation has issued a series of Addenda to various Taxation Determinations and Rulings, as notified in Gazette Notice C2017G00320. These Addenda primarily serve to update the legislative references and references to other Taxation Rulings within the original determinations and rulings. The amendments to TD 1993/146, TR 1992/4, TR 2003/13, TR 2004/4, TR 2005/12, TR 2005/16, and CR 2017/18 are technical in nature, ensuring that the documents remain current with the latest legislative changes. These rulings apply to taxpayers and entities that fall under the purview of the relevant sections of the Income Tax Assessment Act 1997, impacting their compliance and reporting obligations. The Addenda provide clarification and updated references, which are essential for accurate interpretation and application of the tax law. These updates are effective from specified dates, with most taking effect from 22 March 2017, and CR 2017/18 from 15 March 2017. The Commissioner’s authority to issue these Addenda extends under the powers conferred by the Income Tax Assessment Acts.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued several addendums to various Taxation Determinations and Rulings, and one Class Ruling, updating their legislative references and references to other Taxation Rulings. These updates are effective from specific dates, with most commencing on 22 March 2017, and one on 15 March 2017. The purpose of these addendums is to ensure that the references within these rulings are current and accurate, thereby maintaining the integrity and applicability of the rulings in accordance with the latest legislative framework.
The obligations imposed by these addendums are primarily on the Commissioner of Taxation to ensure that the rulings reflect the current legislative environment. This involves a rigorous process of reviewing existing rulings, identifying outdated references, and updating them to align with the current statutes and other relevant rulings. The rulings themselves place obligations on taxpayers to adhere to the updated guidance provided, ensuring they correctly apply the tax law in their specific circumstances.
Breaches of the tax laws as interpreted and applied through these rulings can lead to various consequences. If a taxpayer fails to comply with the updated guidance, they may be subject to penalties under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997, depending on the specific provisions being breached. These penalties can include fines, interest on unpaid tax, and in severe cases, criminal prosecution. The maximum penalties vary depending on the nature and extent of the non-compliance, but they can be significant, reflecting the importance of adhering to tax obligations.
In summary, these addendums serve to update and clarify the application of tax laws in specific areas, ensuring that both the Commissioner and taxpayers have clear and accurate guidance. Compliance with these updated rulings is essential to avoid the financial and legal repercussions associated with non-compliance. The penalties for breaching these laws can be severe, underscoring the importance of accurate and timely tax reporting and payment.