Notice of Rulings 1 September 2021

Overview

The Commissioner of Taxation, Chris Jordan, has issued a notifiable instrument under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 to notify the public of several rulings and addenda to existing rulings. These rulings, available on the Australian Taxation Office website, address specific issues related to income tax and include the public ruling CR 2021/58 concerning the tax consequences of payments made by Tennis Australia Limited to tennis officials for officiating at non-professional tennis events within Australia, effective from 1 July 2020 to 30 June 2025. Additionally, the Commissioner has amended two existing rulings with addenda: TR 2020/1, which updates the income tax deductions for employees' work expenses by removing references to now finalised draft Taxation Rulings, and TR 2021/1, which revises the ruling on deductions for employees' transport expenses by eliminating references to finalised draft Taxation Rulings and Practical Compliance Guidelines, both amendments taking effect from 11 August 2021. These measures aim to provide clarity and ensure compliance with current tax laws by updating and correcting existing rulings and releasing new guidance as necessary.

Scope and Application

The Notifiable Instrument F2021N00211 issued by the Commissioner of Taxation under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 provides notice of several public rulings and their amendments, which are available on the Australian Taxation Office website. These rulings primarily address specific income tax consequences and amendments to existing rulings related to particular transactions and conduct. CR 2021/58 concerns the income tax implications of payments made by Tennis Australia Limited to tennis officials for officiating non-professional tennis events within Australia, applying from 1 July 2020 to 30 June 2025. The instrument also includes amendments to existing rulings, such as TR 2020/1 and TR 2021/1, which pertain to employee deductions for work expenses and transport expenses respectively, both applying from 11 August 2021. These rulings are targeted at entities and individuals involved in the specified activities, within Australia, and are subject to the general provisions of the Taxation Administration Act 1953. The scope of these rulings is confined to the particular tax matters they address, and they do not specify exclusions or thresholds beyond the stated effective dates.

Key Provisions

The Commissioner of Taxation, Chris Jordan, has issued two public rulings and one addendum, all of which are outlined in the notice under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953. These rulings and the addendum are accessible via the ATO's website at ato.gov.au/law. The first public ruling, CR 2021/58, pertains to Tennis Australia Limited and the income tax implications of payments made to tennis officials for officiating at non-professional tennis events within Australia. This ruling is effective from 1 July 2020 to 30 June 2025, providing a five-year window for taxpayers to plan and comply with the specified tax treatments. These rulings and the addendum impose specific obligations on the entities and individuals they govern. For CR 2021/58, Tennis Australia Limited and the officials involved must ensure that their transactions are accurately reported and taxed in accordance with the provisions set forth in the ruling. Similarly, taxpayers claiming deductions for work expenses under section 8-1 of the Income Tax Assessment Act 1997 must adhere to the updates provided in the amended rulings TR 2020/1 and TR 2021/1. These amendments require taxpayers to update their records and claims to exclude references to draft rulings and guidelines that have been finalised, ensuring that their claims are based on the most current and applicable tax law. Failure to comply with the requirements set out in these public rulings and the addendum may result in civil or criminal consequences. For instance, inaccuracies in reporting or non-compliance with the tax obligations specified in CR 2021/58 could lead to penalties under the Income Tax Assessment Act 1997. The penalties for non-compliance can vary but may include fines and interest on any unpaid tax. Furthermore, persistent or deliberate non-compliance might attract more severe penalties, including criminal charges in extreme cases, depending on the nature and extent of the breach.