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 |
CR 2016/58 | Fringe benefits tax: corporate clients of Smartgroup Corporation Ltd and its subsidiaries (Smartgroup) who participate in Smartgroup’s bus travel benefit scheme | The Addendum amends Class Ruling CR 2016/58 to change the preferential order of non‑compliance consequences. The Addendum applies on and from 31 May 2016. |
GSTR 2000/24 | Goods and services tax: Division 129 - making adjustments for changes in extent of creditable purpose | The Addendum amends Goods and Services Tax Ruling GSTR 2000/24 to give effect to new laws in relation to cross-border transactions contained in the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016. The Addendum applies on and from 30 November 2016. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued notices regarding updates to certain tax rulings, which are now available on the Australian Taxation Office website. The first notice concerns an addendum to Class Ruling CR 2016/58, which pertains to fringe benefits tax for corporate clients of Smartgroup Corporation Ltd and its subsidiaries participating in the company's bus travel benefit scheme. This addendum, which applies from 31 May 2016, modifies the preferential order of non-compliance consequences. The second notice updates Goods and Services Tax Ruling GSTR 2000/24, specifically addressing Division 129 and adjustments for changes in the extent of creditable purpose. This addendum, which applies from 30 November 2016, reflects new legislative measures related to cross-border transactions introduced by the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016. These updates aim to ensure compliance with the most recent tax laws and to provide clarity to affected taxpayers.
Scope and Application
The Addendum to Class Ruling CR 2016/58 pertains to corporate clients of Smartgroup Corporation Ltd and its subsidiaries who participate in Smartgroup's bus travel benefit scheme. This ruling provides clarification and amendments to the preferential order of non-compliance consequences for fringe benefits tax (FBT) in relation to the mentioned scheme, and applies from 31 May 2016. It specifically addresses FBT obligations for corporate entities that engage in the specified travel benefit arrangement, ensuring they comply with the relevant FBT provisions. Similarly, the Addendum to Goods and Services Tax Ruling GSTR 2000/24 revises the guidelines to reflect legislative changes introduced by the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016, specifically in relation to Division 129, which deals with making adjustments for changes in the extent of creditable purpose for cross-border transactions. This Addendum applies from 30 November 2016, providing updated guidance for taxpayers engaged in cross-border transactions and their GST obligations. Both rulings extend the application of the legislation through subordinate instruments, ensuring taxpayers are aware of their obligations under the amended provisions.
Key Provisions
The Commissioner of Taxation has issued an Addendum to Class Ruling CR 2016/58, which concerns fringe benefits tax (FBT) for corporate clients of Smartgroup Corporation Ltd and its subsidiaries who participate in the company's bus travel benefit scheme (section 1). This Addendum modifies the order of consequences that apply in cases of non-compliance, meaning it affects the sequence of actions taken by the Commissioner if there is a breach of the FBT rules in this specific context (section 2). The changes outlined in the Addendum are effective from 31 May 2016, which means that any FBT matters pertaining to Smartgroup's bus travel benefit scheme after this date will be governed by the updated ruling.
In terms of obligations and requirements, the Addendum places specific duties on corporate clients who participate in Smartgroup's bus travel benefit scheme. These entities must ensure that their FBT obligations are met in accordance with the preferential order of non-compliance consequences set out in the amended ruling. This involves careful record-keeping and reporting to avoid penalties or other adverse consequences that may arise from non-compliance (section 3). The entities must also be aware of the changes in the ruling and how they affect their FBT calculations and reporting obligations (section 4).
The Addendum to Goods and Services Tax Ruling GSTR 2000/24 introduces changes to the rules governing adjustments for changes in the extent of creditable purpose under Division 129, particularly in relation to cross-border transactions (section 5). The changes are a result of new laws contained in the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016, and they come into effect from 30 November 2016 (section 6). This means that any adjustments made for cross-border transactions after this date will be subject to the revised rules outlined in the Addendum.
Entities involved in cross-border transactions must be aware of the new obligations and requirements under the amended ruling. This includes understanding how to account for changes in the extent of creditable purpose and ensuring that their GST calculations and reporting are in line with the updated provisions (section 7). Failure to comply with the requirements of the Addendum may result in penalties or other consequences under the relevant tax laws (section 8).