COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.
Ruling Number | Subject | Brief Description |
CR 2013/77 | Fringe benefits tax: rewards received by an employee under the LM High Flyers incentive program | The Ruling sets out the Commissioner’s opinion for employers appointed under an agreement with Toyota Motor Corporation Australia Limited to be authorised dealers who enable employees to participate in the LM High Flyers incentive program. The Ruling applies from 1 April 2012. |
Ruling Number | Subject | Brief Description |
TR 2009/2 | Income tax: genuine redundancy payments | The Addendum amends Taxation Ruling TR 2009/2 to correct a misquote of the legislative provision. The Addendum applies on and from 30 October 2013. |
GSTR 2000/10 | Goods and services tax: recipient created tax invoices | The Addendum amends Goods and Services Tax Ruling GSTR 2000/10 to reflect amendments to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). The Addendum applies on and from 1 July 2010. |
GSTR 2000/34 | Goods and services tax: what is an invoice for the purposes of the GST Act? | The Addendum amends Goods and Services Tax Ruling GSTR 2000/34 to reflect amendments to the GST Act. The Addendum explains the Commissioner’s view of the law as it applies from 1 July 2010. |
GSTR 2000/37 | Goods and services tax: agency relationships and the application of the law | The Addendum amends Goods and Services Tax Ruling GSTR 2000/37 to reflect amendments to the GST Act. The Addendum explains the Commissioner’s view of the law as it applies from 1 July 2010. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
GSTA TPP 030 | Goods and services tax: are tax invoices required to show the legal name of the supplier? | Goods and Services Tax Advice GSTA TPP 030 is withdrawn with effect from 30 October 2013. |
GSTA TPP 033 | Goods and services tax: if a supply involves some combination of GST‑free, input taxed and taxable supplies, can a tax invoice simply state that GST is included in the total without stating the amount of GST? | Goods and Services Tax Advice GSTA TPP 033 is withdrawn with effect from 30 October 2013. |
GSTA TPP 034 | Goods and services tax: if an agent makes a single acquisition on behalf of multiple principals, can the tax invoice held by the agent be used by each principal to support the input tax credit claim for their respective shares of the acquisition? | Goods and Services Tax Advice GSTA TPP 034 is withdrawn with effect from 30 October 2013. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a Gazette notice detailing various updates to tax rulings and advices effective from specified dates. This notice includes amendments to existing rulings and the withdrawal of certain tax advices, reflecting legislative changes and corrections to previous interpretations of tax law. The amendments and withdrawals are aimed at ensuring that the rulings accurately reflect the current law and provide clear guidance to taxpayers. These updates are crucial for maintaining the integrity and clarity of tax administration, ensuring that taxpayers have access to the most current and accurate information regarding their obligations under the tax laws.
Scope and Application
The Commissioner of Taxation has issued several rulings and an addendum that impact various aspects of tax law in Australia, specifically under the jurisdiction of the Commonwealth. Ruling CR 2013/77 pertains to the fringe benefits tax and specifically addresses rewards received by employees participating in the LM High Flyers incentive program, applicable to employers appointed under an agreement with Toyota Motor Corporation Australia Limited. This ruling provides the Commissioner's opinion on the tax treatment of such rewards from 1 April 2012 onwards. Additionally, the addendum to Taxation Ruling TR 2009/2 corrects a misquote of the legislative provision concerning genuine redundancy payments, effective from 30 October 2013. The amendments to Goods and Services Tax Rulings GSTR 2000/10, GSTR 2000/34, and GSTR 2000/37, also effective from 1 July 2010, update the interpretation of the Goods and Services Tax Act 1999 to reflect legislative changes. These rulings and amendments collectively guide taxpayers and authorised dealers in their compliance with tax obligations. Several Goods and Services Tax Advices (GSTA TPP) have been withdrawn, including GSTA TPP 030, GSTA TPP 033, and GSTA TPP 034, effective from 30 October 2013, signifying changes in the interpretation or applicability of certain tax provisions.
Key Provisions
The key provisions of this gazette relate to several rulings and addenda issued by the Commissioner of Taxation, primarily concerning fringe benefits tax, income tax, and goods and services tax (GST). Firstly, CR 2013/77 outlines the Commissioner’s opinion on fringe benefits tax for rewards received by employees under the LM High Flyers incentive program, effective from 1 April 2012. TR 2009/2 has been amended to correct a legislative misquote regarding genuine redundancy payments, with the Addendum applying from 30 October 2013. Additionally, several Goods and Services Tax Rulings have been amended to reflect changes to the GST Act. GSTR 2000/10, GSTR 2000/34, and GSTR 2000/37 have each been updated to align with the legislative amendments, effective from 1 July 2010.
The rulings and addenda impose specific obligations on the entities they govern. Employers participating in the LM High Flyers incentive program must adhere to the guidelines set out in CR 2013/77 when calculating fringe benefits tax. Employers and employees must ensure that genuine redundancy payments are correctly classified and taxed in accordance with the corrected provisions in TR 2009/2. Businesses involved in taxable supplies must ensure their tax invoices comply with the updated requirements as reflected in GSTR 2000/10, GSTR 2000/34, and GSTR 2000/37. These amendments clarify the application of GST law in various scenarios, including the necessity of tax invoices showing the supplier’s legal name, the treatment of mixed supplies, and the use of tax invoices by agents on behalf of multiple principals.
Failure to comply with the provisions outlined in these rulings and addenda can result in various consequences. For instance, incorrect classification of fringe benefits under CR 2013/77 could lead to additional tax liabilities for employers and employees. Misclassification of redundancy payments under TR 2009/2 might result in assessments for additional tax or penalties. Non-compliance with the GST rulings could lead to incorrect GST reporting, which may attract penalties or interest charges. The withdrawal of certain Goods and Services Tax Advice (GSTA) from 30 October 2013 means that entities relying on GSTA TPP 030, GSTA TPP 033, and GSTA TPP 034 should transition to the updated rulings. While the gazette does not specify maximum penalties for these particular breaches, general tax legislation provides for penalties, interest, and potentially criminal charges for serious or wilful non-compliance.