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.
NOTICE OF RULING |
Ruling Number | Subject | Brief Description |
CR 2013/74 | Income tax: early retirement scheme for Griffith University | The Ruling sets out the Commissioner’s treatment of those employees of Griffith University who receive a payment under the scheme identified in the Ruling. The Ruling applies from 9 October 2013 to 31 December 2013. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
GSTR 2012/3 | Goods and services tax: GST treatment of care services and accommodation in retirement villages and privately funded nursing homes and hostels | The Addendum amends Goods and Services Tax Ruling GSTR 2012/3 to reflect the following changes to the A New Tax System (Goods and Services Tax) Act 1999: - the substitution of the term ‘community care’ with the term ‘home care’ because of amendments to the Aged Care Act 1997 by Aged Care (Living Longer Living Better) Act 2013, effective from 1 August 2013
- the insertion of section 38-38 by the Tax Laws Amendment (2013 Measures No. 2) Act 2013, which applies to supplies made on or after 1 July 2013.
The Addendum applies partly from 1 July 2013 and partly from 1 August 2013. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
GSTA TPP 044 | Goods and services tax: what action will the Tax Office take if a taxpayer recognises an underpayment and decides to make an adjustment in the current activity statement (BAS), but Tax Office compliance action commences before the current BAS is due? | Goods and Services Tax Advice GSTA TPP 044 is withdrawn with effect from 9 October 2013. |
GSTA TPP 045 | Goods and services tax: can I correct activity statement (BAS), errors resulting from a failure to attribute increasing or decreasing adjustments to required tax periods? | Goods and Services Tax Advice GSTA TPP 045 is withdrawn with effect from 9 October 2013. |
GSTA TPP 059 | Goods and services tax: will the Tax Office refund overpaid GST if a supplier makes a mistake in preparing its activity statement and incorrectly includes a supply as a taxable supply? | Goods and Services Tax Advice GSTA TPP 059 is withdrawn with effect from 9 October 2013. |
Overview
The Commissioner of Taxation, Chris Jordan, issued several notices in 2013 related to tax rulings and addendums. The Income Tax Ruling CR 2013/74 was introduced to provide clarity on the tax treatment of employees of Griffith University participating in an early retirement scheme. This ruling applies from 9 October 2013 to 31 December 2013. Additionally, the Goods and Services Tax Ruling GSTR 2012/3 was amended through an addendum to reflect changes in the A New Tax System (Goods and Services Tax) Act 1999. The changes include the substitution of the term "community care" with "home care" and the insertion of section 38-38, which applies to supplies made on or after 1 July 2013. The addendum applies partly from 1 July 2013 and partly from 1 August 2013. Furthermore, several Goods and Services Tax Advices were withdrawn, including GSTA TPP 044, GSTA TPP 045, and GSTA TPP 059, all with effect from 9 October 2013.
Scope and Application
The Commissioner of Taxation has issued several rulings and amendments that have specific applications and implications under Australian law. CR 2013/74 pertains to the income tax treatment of employees of Griffith University who receive payments under a specified early retirement scheme. This ruling applies specifically to those employees within the timeframe from 9 October 2013 to 31 December 2013, outlining how such payments will be taxed under the Income Tax Assessment Act 1997. In contrast, GSTR 2012/3, amended by an addendum, addresses the GST treatment of care services and accommodation in retirement villages and privately funded nursing homes and hostels, reflecting legislative changes effective from 1 July 2013 and 1 August 2013 respectively. The addendum modifies the ruling to align with changes in terminology and new provisions introduced by the Aged Care (Living Longer Living Better) Act 2013 and the Tax Laws Amendment (2013 Measures No. 2) Act 2013. Additionally, certain Goods and Services Tax Advice Tax Practitioners' Panels (GSTA TPP) have been withdrawn, including GSTA TPP 044, GSTA TPP 045, and GSTA TPP 059, with the changes taking effect from 9 October 2013. These rulings and amendments are integral to ensuring compliance with tax obligations for specified entities and industries within Australia.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued several rulings and amendments to existing rulings, which provide clarity on various tax issues, particularly concerning income tax and the Goods and Services Tax (GST). CR 2013/74 outlines the tax treatment for employees of Griffith University who receive payments under a specific early retirement scheme. This ruling applies from 9 October 2013 to 31 December 2013, and it ensures that the tax implications of these payments are understood and correctly applied during this period.
GSTR 2012/3, with its addendum, addresses the GST treatment of care services and accommodation provided in retirement villages, as well as in privately funded nursing homes and hostels. The addendum corrects terminology in line with changes made to the Aged Care Act 1997 and incorporates a new section 38-38 introduced by the Tax Laws Amendment (2013 Measures No. 2) Act 2013. This ruling applies partly from 1 July 2013 and partly from 1 August 2013, providing updated guidance on the GST treatment of these services to reflect legislative changes.
The obligations and requirements imposed by these rulings are primarily focused on ensuring that taxpayers correctly apply the tax laws as they pertain to specific schemes and services. For instance, the ruling on the early retirement scheme for Griffith University employees requires these individuals and the university itself to accurately report the payments received under the scheme and ensure compliance with the income tax provisions outlined in the ruling. Similarly, the addendum to GSTR 2012/3 requires providers of care services and accommodation in the specified settings to correctly classify and report their services under GST, taking into account the legislative changes that have been incorporated.
Failure to comply with the provisions set out in these rulings may result in various consequences. For example, incorrect reporting or failure to declare taxable supplies under GST could lead to penalties. The maximum penalties for GST underpayments or incorrect reporting can be severe, including fines and interest on the unpaid tax. Additionally, in cases where a taxpayer knowingly provides false or misleading statements, the penalties can be even more substantial, including potential criminal charges. The specific penalties depend on the nature and extent of the breach, but they are designed to enforce compliance and ensure the integrity of the tax system.