Notice of Addenda, Notice of Withdrawals

Overview

The Commissioner of Taxation, Chris Jordan, has issued an addendum and withdrawals regarding certain taxation rulings. The addendum, LCR 2016/8, amends the transitional capital gains tax (CGT) relief for complying superannuation funds and pooled superannuation trusts, correcting an error in the calculation of the 12-month period for applying the CGT 50% discount provisions. This addendum applies from 8 March 2017. Additionally, four rulings, TD 2012/3, TD 2012/4, TD 2012/6, and TD 2012/7, concerning fringe benefits tax have been withdrawn effective from 2 May 2018. These rulings related to the exemption threshold, indexation factors for valuing non-remote housing, rates for calculating the taxable value of private use of motor vehicles, and the benchmark interest rate for the fringe benefits tax year commencing on 1 April 2012, respectively. These notices are provided to ensure that taxpayers and tax practitioners are informed of the changes and can adjust their practices accordingly.

Scope and Application

The Commissioner of Taxation, Chris Jordan, has issued an addendum and notices of withdrawal concerning certain tax rulings. The addendum, LCR 2016/8, amends the transitional capital gains tax (CGT) relief for complying superannuation funds and pooled superannuation trusts, correcting an error in paragraph 96 and adding a footnote 56A that specifies the application of the CGT 50% discount provisions, requiring a clear period of 12 months excluding the day of acquisition and the day on which the CGT event occurs. This Addendum applies from 8 March 2017. In addition, several tax determinations (TD) from 2012 regarding fringe benefits tax, including exemption thresholds, indexation factors for valuing non-remote housing, rates for calculating the taxable value of the private use of motor vehicles other than cars, and the benchmark interest rate, have been withdrawn with effect from 2 May 2018. These rulings and their amendments pertain to individuals, entities, and industries involved in superannuation and fringe benefits tax, and their jurisdictional reach is national, aligning with Commonwealth tax law.

Key Provisions

The Commissioner of Taxation has issued a notice of addendum and withdrawal regarding specific rulings related to superannuation reform and fringe benefits tax. The addendum, LCR 2016/8, addresses transitional capital gains tax (CGT) relief for complying superannuation funds and pooled superannuation trusts. Specifically, it corrects an error in paragraph 96 and adds footnote 56A to clarify that a clear 12-month period is required when applying the CGT 50% discount provisions, excluding the day of acquisition and the day on which the CGT event happens. This addendum applies from 8 March 2017. The obligations under the amended LCR 2016/8 require complying superannuation funds and pooled superannuation trusts to correctly apply the clarified CGT 50% discount provisions. Fund administrators and trustees must ensure that the 12-month period is accurately calculated by excluding the relevant acquisition and disposal dates. Failure to comply with these provisions may result in incorrect CGT assessments and potential tax liabilities or refunds. In terms of the withdrawn rulings, TD 2012/3, TD 2012/4, TD 2012/6, and TD 2012/7, which pertain to fringe benefits tax for the tax year commencing on 1 April 2012, have been withdrawn with effect from 2 May 2018. These rulings previously provided guidance on the exemption threshold for fringe benefits tax, indexation factors for valuing non-remote housing, rates for calculating the taxable value of the private use of motor vehicles other than cars, and the benchmark interest rate, respectively. These withdrawals mean that taxpayers and employers must refer to more recent rulings or legislative provisions for the applicable tax year. For breaches or non-compliance with the amended or withdrawn rulings, there may be civil or criminal consequences. The penalties for non-compliance with tax laws can include fines and, in severe cases, imprisonment. The specific penalties depend on the nature and severity of the breach, as outlined in the relevant taxation legislation. For example, knowingly making a false statement or document can attract a penalty of up to $1,100 per breach under section 286 of the Taxation Administration Act 1953. Additionally, failure to lodge a tax return or statement can result in penalties up to $1,750 per offence.