Notice of Rulings 20 March 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 2024/17 | Invex Therapeutics Ltd – return of capital | This Ruling sets out the income tax consequences for shareholders of Invex Therapeutics Ltd who received the return of share capital on 18 December 2023. This Ruling applies from 1 July 2023 to 30 June 2024. |
CR 2024/18 | Newcrest Mining Limited – scrip for scrip roll-over, final ordinary dividend and special dividend | This Ruling sets out the income tax consequences for the holders of ordinary shares in Newcrest Mining Limited in relation to the: - payment of the final ordinary dividend by Newcrest on 18 September 2023
- payment of the special dividend by Newcrest on 27 October 2023, and
- acquisition of the ordinary shares in Newcrest by Newmont Overseas Holdings Pty Ltd which was implemented on 6 November 2023.
This Ruling applies from 1 July 2023 to 30 June 2024. |
CR 2024/19 | Symbio Holdings Limited – employee share scheme – shares disposed of under scheme of arrangement | This Ruling sets out the income tax consequences for employees of Symbio Holdings Limited who participated in the Symbio Holdings Limited Employee Share Plan to acquire ordinary shares in Symbio which were subsequently disposed of on 28 February 2024 pursuant to a scheme of arrangement. This Ruling applies from 1 July 2021 to 30 June 2024. |
NOTICE OF ADDENDA |
Ruling number | Subject | Brief description |
CR 2019/27 | Income tax: Community Housing Canberra Limited – deductibility of donations under a Payment Direction Deed | This Addendum amends Class Ruling CR 2019/27 to update the date of effect of the Ruling. This Addendum applies from 1 April 2019. |
Overview
The Notice of Rulings 2024 issued by the Commissioner of Taxation, Rob Heferen, under the Taxation Administration Act 1953, provides clarification on the income tax implications for various corporate actions. The notice addresses specific situations involving companies such as Invex Therapeutics Ltd, Newcrest Mining Limited, and Symbio Holdings Limited, and also includes an addendum to an existing ruling concerning the deductibility of donations by Community Housing Canberra Limited. These public rulings are designed to guide taxpayers on their obligations and entitlements in respect of particular transactions, helping to ensure compliance and consistency in tax administration. The rulings aim to provide certainty to taxpayers and the Commissioner of Taxation by setting out the tax treatment of certain transactions and events within the specified periods.
Scope and Application
The Notifiable Instrument F2024N00240 issued by the Commissioner of Taxation, Rob Heferen, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, pertains to public rulings that address specific income tax consequences for various companies and their shareholders. These rulings apply to shareholders and employees of Invex Therapeutics Ltd, Newcrest Mining Limited, and Symbio Holdings Limited, specifically outlining the tax implications for events such as the return of share capital, dividends, and the disposal of shares under a scheme of arrangement. The rulings are effective from 1 July 2023 to 30 June 2024 for most cases, except for the addendum to CR 2019/27 which applies from 1 April 2019. This legislation extends its application to cover particular transactions and events within the specified timeframes, offering clarity to taxpayers regarding their obligations and entitlements in relation to these transactions. The geographic reach of these rulings is nationwide, applying across the Commonwealth of Australia, and they are subject to any further clarification or modification through subordinate instruments as needed.
Key Provisions
The Notifiable Instrument F2024N00240 issued on 20 March 2024 by the Commissioner of Taxation, Rob Heferen, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, notifies the public of several rulings and an addendum that are relevant to income tax matters. These rulings, which can be accessed on the ATO website at ato.gov.au/law, provide specific guidance on the tax consequences for shareholders and employees in particular corporate scenarios. The rulings pertain to Invex Therapeutics Ltd (CR 2024/17), Newcrest Mining Limited (CR 2024/18), and Symbio Holdings Limited (CR 2024/19), each detailing the income tax implications for shareholders or employees involved in certain transactions that occurred within specified time frames.
The obligations imposed by these rulings on the affected parties are primarily informational and procedural. Shareholders and employees must understand and apply the tax consequences outlined in the relevant ruling to their financial records and tax filings for the applicable period. For instance, shareholders of Invex Therapeutics Ltd who received a return of capital on 18 December 2023 must consider the income tax implications of that event as per Ruling CR 2024/17. Similarly, employees of Symbio Holdings Limited who disposed of shares under a scheme of arrangement on 28 February 2024 must refer to Ruling CR 2024/19. It is crucial that these parties adhere to the guidance provided to ensure compliance with income tax laws.
The Notifiable Instrument also includes an addendum to an existing ruling, CR 2019/27, which addresses the deductibility of donations under a Payment Direction Deed by Community Housing Canberra Limited. This addendum updates the date of effect of the original ruling, extending its applicability to 1 April 2019. This means that any donations made under this deed from that date onwards should be assessed in accordance with the updated guidance. Failure to comply with the requirements set out in these rulings and the addendum could result in incorrect tax filings, potential audits, and possibly penalties or interest on any underpaid tax.
Under the Taxation Administration Act 1953, breaches of the obligations set out in these rulings could lead to civil or criminal consequences. For civil penalties, the Act allows for fines up to the greater of $2,220 or 5% of the understatement of tax, depending on the severity of the non-compliance. Criminal penalties can include fines up to $16,500 and/or imprisonment for up to one year for individuals, and significantly higher fines for corporate entities. These penalties underscore the importance of adhering to the rulings and addendum to avoid adverse legal and financial repercussions.