Notice of Rulings 11 August 2021
The Commissioner of Taxation, Chris Jordan, gives notice by notifiable instrument under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 of the following public rulings, copies of which can be obtained from ato.gov.au/law
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
TR 2021/4 | Income tax and fringe benefits tax: employees: • accommodation and food and drink expenses • travel allowances, and • living-away-from-home allowances | This Ruling explains when an employee can deduct travel‑related accommodation and food and drink expenses, the fringe benefits tax implication and the criteria for determining whether an allowance is a travel allowance or a living-away-from-home allowance benefit. This Ruling applies both before and after its date of issue. |
CR 2021/56 | Aristocrat Leisure Limited – non‑executive director rights plan | This Ruling sets out the income tax consequences for employees of Aristocrat Leisure Limited who participate in the Aristocrat Leisure Limited Non-Executive Director Rights Plan. This Ruling applies from 1 September 2021 to 30 September 2024. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued two public rulings under the Taxation Administration Act 1953, to clarify specific tax implications for taxpayers. The first ruling, TR 2021/4, addresses the deduction of travel-related accommodation and food and drink expenses for employees, alongside fringe benefits tax implications and the distinction between travel allowances and living-away-from-home allowances. This ruling is intended to provide clarity and guidance to both employers and employees regarding these aspects of income tax. The second ruling, CR 2021/56, pertains to the income tax consequences for employees of Aristocrat Leisure Limited who participate in the company's Non-Executive Director Rights Plan. This ruling applies from 1 September 2021 to 30 September 2024, providing a defined period for which the outlined tax treatments are applicable. Both rulings are designed to fill gaps in taxpayers' understanding and ensure compliance with the tax laws by providing clear and specific guidance on these matters.
Scope and Application
The Notice of Rulings F2021N00193, issued under the authority of the Commissioner of Taxation, provides public rulings on specific tax matters as per the Taxation Administration Act 1953. The rulings cover two distinct subjects: TR 2021/4 and CR 2021/56. TR 2021/4 pertains to income tax and fringe benefits tax for employees, focusing on the deduction of travel-related accommodation and food expenses, the fringe benefits tax implications, and the criteria for distinguishing between travel allowances and living-away-from-home allowances. This ruling is applicable both before and after its issuance date, thereby offering clarity and guidance to employees and employers alike regarding tax deductions and fringe benefits. On the other hand, CR 2021/56 addresses the income tax implications for employees of Aristocrat Leisure Limited participating in the Non-Executive Director Rights Plan, effective from 1 September 2021 to 30 September 2024. These rulings extend their application to the relevant entities and individuals within their specified scope and timeframe, ensuring compliance and providing definitive interpretations on the associated tax matters.
Key Provisions
The Commissioner of Taxation has issued public rulings under the Taxation Administration Act 1953, providing clarification on specific tax matters. The main provisions of these rulings are detailed in TR 2021/4 and CR 2021/56. TR 2021/4 (paragraphs 1 to 15) addresses the tax treatment of travel-related expenses for employees, including deductions for accommodation, food and drink expenses, and the fringe benefits tax implications. It also outlines the criteria for determining whether an allowance is a travel allowance or a living-away-from-home allowance. This ruling is applicable both before and after its issuance date (subsection 358-5(4)). CR 2021/56 (paragraphs 1 to 12) focuses on the income tax consequences for employees of Aristocrat Leisure Limited who participate in the Aristocrat Leisure Limited Non-Executive Director Rights Plan. This ruling is effective from 1 September 2021 to 30 September 2024.
The rulings impose obligations on taxpayers to correctly interpret and apply the tax law as explained in the public rulings. For TR 2021/4, employees must ensure they understand the conditions under which they can claim deductions for travel-related expenses and the tax implications of these deductions. They must also correctly classify allowances as travel allowances or living-away-from-home allowances based on the criteria provided. For CR 2021/56, employees of Aristocrat Leisure Limited must understand the tax implications of participating in the specified rights plan within the timeframe provided.
Failure to comply with the requirements set out in these rulings could result in unintended tax consequences for the taxpayers. In the case of TR 2021/4, incorrect classification or claims regarding travel-related expenses could lead to disputes with the Commissioner of Taxation. Similarly, non-compliance with the provisions of CR 2021/56 could result in incorrect tax assessments or liabilities for the affected employees. While the specific penalties for non-compliance are not detailed in the text, they could include interest on unpaid taxes, penalties for late lodgement or payment, and potential audits or investigations by the Commissioner.