Notice of Rulings 14 June 2023
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 |
CR 2023/31 | LogbookMe Pty Ltd – LogbookMe In-Car Logbook Solution for measuring the kilometres travelled in a vehicle for fuel tax credit purposes | This Ruling sets out when the ‘Asset Breakdown Report’ generated from the LogbookMe In-Car Logbook Solution can be used as a record for fuel tax credit record‑keeping purposes. This Ruling applies to taxable fuel acquired on or after 1 July 2022 until 30 June 2024. |
CR 2023/32 | EROAD Australia Pty Ltd – Fuel Tax Credits Solution | This Ruling sets out when the ‘FTC Report’ generated from EROAD Australia Pty Ltd’s Fuel Tax Credits Solution can be used as a record for fuel tax credit record-keeping purposes. This Ruling applies to taxable fuel acquired on or after 1 January 2023 until 30 June 2024. |
PR 2023/8 | Elders Rural Services Australia Limited – Rural Products Prepayment Program | This Ruling sets out the tax consequences for customers who participate in the Rural Products Prepayment Program. This Ruling applies to the class of entities specified in the Ruling that enter into the scheme from 1 July 2023 to 30.June 2026. |
NOTICE OF ADDENDUM |
Ruling number | Subject | Brief description |
GSTR 2004/7 | Goods and services tax: in the application of items 2 and 3 and paragraph (b) of item 4 in the table in subsection 38‑190(1) of the A New Tax System (Goods and Services Tax) Act 1999: - when is a ‘non-resident’ or other ‘recipient’ of a supply ‘not in Australia when the thing supplied is done’?
- when is ‘an entity that is not an Australian resident’ ‘outside Australia when the thing supplied is done’?
| This Ruling is amended to reflect changes relating to the advice on individual residency. This Addendum applies on and from 14 June 2023. |
Overview
The Notice of Rulings issued on 14 June 2023 by the Commissioner of Taxation, Chris Jordan, pertains to the Taxation Administration Act 1953 and provides clarification on the use of certain digital solutions for record-keeping purposes under the fuel tax credit regime, as well as addressing changes in the application of the Goods and Services Tax (GST) regarding residency. These rulings and the accompanying addendum, issued as a notifiable instrument, aim to ensure taxpayers have a clear understanding of the compliance requirements when using specific technologies for tax purposes, and to adapt to changes in residency interpretations under the GST regime. The rulings and addendum, available on the ATO website, apply to transactions occurring within specified periods, ensuring that taxpayers can confidently use the outlined solutions and interpret their tax obligations accurately.
Scope and Application
The notice of rulings issued under the Taxation Administration Act 1953 by the Commissioner of Taxation, Chris Jordan, pertains to public rulings and an addendum that affect specific entities and transactions within a defined timeframe. Ruling CR 2023/31 relates to LogbookMe Pty Ltd’s In-Car Logbook Solution, specifying its use for measuring kilometres travelled for fuel tax credit purposes. This ruling applies to taxable fuel acquired from 1 July 2022 until 30 June 2024. Similarly, Ruling CR 2023/32 concerns EROAD Australia Pty Ltd’s Fuel Tax Credits Solution, setting out its eligibility for fuel tax credit record-keeping purposes for fuel acquired from 1 January 2023 until 30 June 2024. Ruling PR 2023/8 addresses the tax implications for entities participating in Elders Rural Services Australia Limited’s Rural Products Prepayment Program, applying to those entering the scheme from 1 July 2023 until 30 June 2026. Additionally, the notice includes an addendum to GSTR 2004/7, which pertains to the application of goods and services tax, specifically addressing the residency status of recipients in Australia, effective from 14 June 2023. These rulings and the addendum are designed to clarify tax obligations for the specified entities and transactions within the stated periods.
Key Provisions
The main operative sections of this legislation consist of public rulings and an addendum. Public Rulings CR 2023/31, CR 2023/32, and PR 2023/8 provide specific guidance on the use of certain software solutions for record-keeping purposes in relation to fuel tax credits, and the tax consequences of participating in the Rural Products Prepayment Program, respectively (sections 1-3). The addendum, GSTR 2004/7, amends an existing ruling to reflect changes relating to the advice on individual residency in the context of goods and services tax (section 4).
The obligations and requirements imposed by these provisions are primarily concerned with compliance in record-keeping and tax planning. For instance, taxpayers must ensure that they are using the approved software solutions for recording kilometres travelled for fuel tax credits, as outlined in the public rulings CR 2023/31 and CR 2023/32. Additionally, those participating in the Rural Products Prepayment Program must be aware of the tax consequences as set out in PR 2023/8. The addendum, GSTR 2004/7, imposes an obligation on taxpayers to understand the changes in the application of the goods and services tax in relation to residency.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in this legislation. However, non-compliance with these rulings and the amended addendum could potentially lead to penalties under the relevant Acts if the Commissioner of Taxation determines that the rulings have not been adhered to or the tax consequences have not been correctly accounted for. The maximum penalties for such non-compliance would depend on the specific provisions of the Taxation Administration Act 1953, the A New Tax System (Goods and Services Tax) Act 1999, and other applicable legislation. It is essential for taxpayers to ensure they are compliant with these rulings and the amended addendum to avoid any potential penalties or adverse tax consequences.