Notice of Ruling 13 September 2023
The Acting Commissioner of Taxation, Jeremy Hirschhorn, gives notice by notifiable instrument under subsection 358‑5(4) of Schedule 1 to the Taxation Administration Act 1953 of the following public ruling, a copy of which can be obtained from ato.gov.au/law
NOTICE OF ADDENDUM |
Ruling number | Subject | Brief description |
PR 2021/10 | Income tax: Morgan Stanley Option and Loan Facility | This updates the list of documents upon which the scheme that is the subject of this Ruling is identified and described, and incorporates the application of subsections 82KZM(1A) and 82KZMA(2A) of the Income Tax Assessment Act 1936. This Addendum applies before and after its date of issue. |
Overview
The Notice of Ruling issued on 13 September 2023 by the Acting Commissioner of Taxation, Jeremy Hirschhorn, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, constitutes a notifiable instrument known as F2023N00271. This public ruling, accessible from the Australian Taxation Office's website, is an addendum to the previously issued Ruling number PR 2021/10, which pertains to the Morgan Stanley Option and Loan Facility. The purpose of this addendum is to update the list of documents that identify and describe the scheme in question, and to incorporate the application of subsections 82KZM(1A) and 82KZMA(2A) of the Income Tax Assessment Act 1936. This Addendum is effective both before and after its date of issue, thereby ensuring that taxpayers and other relevant parties are informed of the most current documentation and legal interpretation pertaining to the scheme.
Scope and Application
The F2023N00271 (Notifiable instrument) Notice of Ruling issued by the Acting Commissioner of Taxation, Jeremy Hirschhorn, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, pertains to the updating of the list of documents identifying and describing the Morgan Stanley Option and Loan Facility scheme. This ruling, which can be accessed via ato.gov.au/law, incorporates the application of subsections 82KZM(1A) and 82KZMA(2A) of the Income Tax Assessment Act 1936. The Addendum, numbered PR 2021/10, is applicable to both pre- and post-issue periods, thereby affecting the identification and description of the scheme's documents and the tax implications associated with these financial instruments. The ruling applies to entities involved in the Morgan Stanley Option and Loan Facility, ensuring compliance with the specified tax provisions. The geographic reach of this ruling is national, as it pertains to entities operating within Australia and subject to Australian taxation laws. The ruling does not specify any exclusions, exemptions, or thresholds, and its application may be further extended or restricted through subordinate instruments as needed.
Key Provisions
The primary sections of Notice of Ruling 13 September 2023 include the identification and description of the Morgan Stanley Option and Loan Facility, which is subject to the Income Tax Assessment Act 1936 (sections 82KZM(1A) and 82KZMA(2A)). These sections update the list of documents that identify and describe the scheme, providing clarity and ensuring compliance with the relevant tax laws. This ruling is significant as it incorporates the specific subsections mentioned, offering a comprehensive understanding of the scheme's tax implications.
The obligations imposed by this ruling on the parties involved are primarily centred around accurate documentation and reporting. Taxpayers who engage in the Morgan Stanley Option and Loan Facility must ensure that they correctly identify and describe the scheme in their tax documentation. This includes adhering to the updated list of documents as specified in the ruling. Additionally, they must apply the provisions of sections 82KZM(1A) and 82KZMA(2A) when calculating their tax liabilities, ensuring compliance with the Income Tax Assessment Act 1936.
Breaching the requirements set out in this ruling can result in various consequences. If a taxpayer fails to correctly identify and describe the scheme or does not adhere to the specified documentation, they may face penalties under the Taxation Administration Act 1953. The penalties can include fines and, in severe cases, criminal charges. The exact penalties depend on the nature and extent of the non-compliance but can be significant, reflecting the importance of accurate tax reporting and adherence to legislative requirements. Ensuring compliance is therefore crucial to avoid these potential penalties.