Notice of Rulings 11 December 2024
The Commissioner of Taxation, Rob Heferen, 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 |
CR 2024/76 | APM Human Services International Limited – scrip for scrip roll-over | This Ruling sets out the income tax consequences for the holders of ordinary shares in APM Human Services International Limited who disposed of their ordinary shares to Ancora TopCo Ltd on 10 October 2024. This Ruling applies to shareholders specified in the Ruling from 1 July 2024 to 30 June 2025. |
CR 2024/77 | Toyota Motor Corporation Australia Limited – Toyota Halo system in conjunction with the Data Communication Module hardware for car logbook and odometer records | This Ruling sets out the fringe benefits tax consequences for users of the reports generated by the Toyota Halo system, using the Data Communication Module hardware, for car logbook and odometer records. This Ruling applies to employers specified in the Ruling from 1 April 2024 to 31 March 2028. |
CR 2024/78 | Vertical Telecoms Pty Limited – buy-back of employee shares acquired with a limited recourse loan | This Ruling sets out the income tax consequences for shareholders in Vertical Telecoms Pty Limited who acquired Class A shares under the employee incentive arrangement described in the Ruling and who subsequently disposed of those shares in the buy-back of shares described in the Ruling. This Ruling applies to shareholders specified in the Ruling to the income year in which the buy-back occurs. |
PR 2024/20 | ING Bank (Australia) Limited – Orange Everyday Round Up to Charity | This Ruling sets out the income tax consequences for individuals who hold an ING Bank (Australia) Limited Orange Everyday or Orange Everyday Youth bank account and activate the Round Up to Charity feature. This Ruling applies from 1 July 2024 to Account Holders specified in the Ruling who have activated the Round Up to Charity feature from 1 July 2024 until 30 June 2027. |
NOTICE OF ADDENDUM |
Ruling number | Subject | Brief description |
TR 2023/4 | Income tax: pay as you go withholding – who is an employee? | This Addendum amends TR 2023/4 to include guidance in Appendix 2 of the Ruling on when a person is considered to be an 'employee' under section 12 of the Superannuation Guarantee (Administration) Act 1992 (SGAA). Appendix 2 of the Ruling: • assists the community by confirming the ATO’s view in light of developments in case law in the context of the SGAA since SGR 2005/1W Superannuation guarantee: who is an employee? (withdrawn) was last updated • consolidates the ATO’s view in respect of the common law definition of employee contained in SGR 2005/1 (withdrawn) and TR 2023/4 • provides a holistic ATO view of the common law meaning of employee and extended meaning of the word as contained in the SGAA. This Addendum applies both before and after its date of issue. |
Overview
The Taxation Administration Act 1953, enacted by the Parliament of Australia, serves to provide a framework for the administration of taxation laws in the country. One of its critical functions is to ensure clarity and transparency in the application of these laws by issuing public rulings and providing updates through notifiable instruments. The Notice of Rulings and Addendum, as issued by the Commissioner of Taxation, Rob Heferen, on 11 December 2024, aims to address specific issues and provide definitive guidance to taxpayers regarding their obligations under the law. This includes clarifying the tax consequences for various transactions, such as the scrip roll-over by APM Human Services International Limited, the fringe benefits tax implications for Toyota's Halo system, and the income tax considerations for ING Bank's Round Up to Charity feature. By providing these rulings, the legislation seeks to ensure that taxpayers are fully informed and can comply with their tax obligations effectively, thereby maintaining the integrity of the tax system.
Scope and Application
The Notifiable instrument F2024N01132 issued by the Commissioner of Taxation, Rob Heferen, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, outlines several public rulings that clarify specific income tax and fringe benefits tax implications for particular transactions and arrangements. These rulings apply to the identified shareholders, employers, and account holders within specified periods. For instance, CR 2024/76 addresses the tax consequences for shareholders of APM Human Services International Limited who disposed of their shares on 10 October 2024, while CR 2024/77 deals with the fringe benefits tax implications for users of the Toyota Halo system. PR 2024/20 concerns the income tax consequences for individuals with ING Bank (Australia) Limited accounts who have activated the Round Up to Charity feature. The rulings are applicable from specified start dates to 30 June 2027, except for CR 2024/77, which extends to 31 March 2028. The instrument also includes an addendum to TR 2023/4 that clarifies the definition of an employee under the Superannuation Guarantee (Administration) Act 1992, effective both before and after its issuance.
Key Provisions
The main operative sections of the Notifiable instrument F2024N01132 (hereinafter referred to as the 'instrument') pertain to the notification of public rulings issued by the Commissioner of Taxation, Rob Heferen, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953. The instrument provides notice of several public rulings (CR 2024/76, CR 2024/77, CR 2024/78, and PR 2024/20) and an addendum (TR 2023/4). These rulings and the addendum specify the income tax consequences and fringe benefits tax implications for various entities and individuals in specific circumstances. Each ruling applies to the particular entities or individuals specified within the ruling for defined periods, ranging from one to four years. For instance, CR 2024/76 pertains to the income tax consequences for holders of ordinary shares in APM Human Services International Limited from 1 July 2024 to 30 June 2025. The addendum to TR 2023/4, concerning 'pay as you go withholding – who is an employee?', applies both before and after its issuance date.
The instrument imposes obligations on the entities and individuals specified in the rulings to adhere to the specified tax consequences outlined. For example, shareholders in APM Human Services International Limited must account for their income tax as per the guidelines in CR 2024/76 for the specified period. Similarly, employers using the Toyota Halo system must consider the fringe benefits tax implications as outlined in CR 2024/77. Additionally, the addendum TR 2023/4 requires taxpayers to understand the ATO's view on who qualifies as an 'employee' under the Superannuation Guarantee (Administration) Act 1992. Compliance with these rulings is mandatory for the specified entities and individuals to avoid discrepancies in their tax filings and potential audits.
The instrument also delineates the consequences for non-compliance with the public rulings. Although the instrument does not explicitly state penalties or offences, non-compliance could lead to tax assessments, interest charges, and penalties for late or incorrect tax filings. The ATO may also conduct audits to ensure adherence to the specified tax consequences. For instance, if an employer fails to account for the fringe benefits tax as per CR 2024/77, they may face additional tax liabilities, interest, and potential penalties. Similarly, shareholders in APM Human Services International Limited who do not follow the income tax guidelines in CR 2024/76 may face tax assessments and related financial consequences.
The instrument further provides clarity on the legal definition of 'employee' under the Superannuation Guarantee (Administration) Act 1992 through the addendum TR 2023/4. This addendum consolidates the ATO’s view on the common law meaning of employee and its extended meaning in the context of the SGAA. By doing so, it aims to assist taxpayers in understanding when a person is considered an 'employee'. Non-compliance with the interpretations provided in this addendum could result in incorrect superannuation guarantee charge (SGC) calculations, leading to further tax implications. Therefore, it is crucial for entities and individuals to adhere to the guidelines provided in these public rulings and the addendum to avoid potential tax-related issues.