Notice of Rulings 22 November 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 2023/61 | Argo Investments Limited – dividend substitution share plan | This Ruling sets out the income tax consequences of Argo Investments Limited shareholders electing to receive shares in lieu of dividends under the Argo Investments Limited Dividend Substitution Share Plan. The Ruling applies to shareholders specified in the Ruling from 1 July 2023 to 30 June 2028. |
CR 2023/62 | Argo Global Listed Infrastructure Limited – dividend substitution share plan | This Ruling sets out the income tax consequences for shareholders of Argo Global Listed Infrastructure Limited who elect to receive shares in lieu of dividends under the Argo Global Listed Infrastructure Limited Dividend Substitution Share Plan. The Ruling applies to the shareholders specified in the Ruling from 1 July 2023 to 30 June 2028. |
CR 2023/63 | Carbon Revolution Limited – employee share scheme – exchange of shares for Carbon Revolution plc shares | This Ruling sets out the income tax consequences for employees of Carbon Revolution Limited who acquired ordinary shares in Carbon Revolution Limited through the Tax Exempt Employee Share Plan which were subsequently cancelled in exchange for shares in Carbon Revolution plc on 3 November 2023. The Ruling applies to shareholders specified in the Ruling from 1 July 2020 to 30 June 2024. |
CR 2023/64 | Sunland Group Limited – return of capital | This Ruling sets out the income tax consequences for shareholders of Sunland Group Limited who receive a return of capital payment on 1 November 2023. The Ruling applies to shareholders specified in the Ruling from 1 July 2023 to 30 June 2024. |
PR 2023/24 | Allianz Guaranteed Income for Life | This Ruling sets out the income tax consequences for specified entities who receive specified payments from the Allianz Guaranteed Income for Life life policy to be offered by Allianz Australia Life Insurance Limited under the product disclosure statement. The Ruling applies to the entities specified in the Ruling that enter into a policy from 24 November 2023 until 30 June 2026. |
TD 2023/6 | Income tax: tax incentives for early stage investors: what is an ‘expense’ that is ‘incurred’ for the early stage test? | This Determination clarifies the expenses taken into account in determining whether a company meets the requirements of an early stage innovation company for its investors to access the tax incentives. The Determination applies to years of income commencing both before and after its date of issue. |
TD 2023/7 | Income tax: value of goods taken from stock for private use for the 2023–24 income year | This Determination provides an update of amounts that the Commissioner will accept as estimates of the value of goods taken from trading stock for private use by taxpayers in named industries. The Determination applies to the 2023–24 income year. |
NOTICE OF ADDENDUM |
Ruling number | Subject | Brief description |
PR 2019/5 | Income tax: taxation consequences of investing in the Westpace Protected Equity Loan | This Ruling is amended to incorporate the application of subsections 82KZM(1A) and 82KZMA(2A) of the Income Tax Assessment Act 1936. This Addendum applies before and after its date of issue. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a notifiable instrument under the Taxation Administration Act 1953, which includes public rulings and determinations that outline the tax consequences of various financial arrangements and transactions. This notice was issued to address clarity and compliance issues in the taxation of specific financial plans and investments. The rulings and determinations are aimed at providing certainty to taxpayers involved in these transactions, ensuring they understand their tax obligations. The rulings cover a range of subjects including dividend substitution share plans, returns of capital, and tax incentives for early stage investors. These instruments apply to taxpayers involved in these arrangements within specified periods, ensuring they are aware of their tax implications.
Scope and Application
The notice of rulings provided by the Commissioner of Taxation under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 applies to specific taxpayers or entities involved in certain transactions and plans, with the aim of clarifying their income tax obligations. The rulings and determinations cover a range of scenarios, including the tax consequences of shareholders receiving shares in lieu of dividends for companies such as Argo Investments Limited, Argo Global Listed Infrastructure Limited, and Carbon Revolution Limited, as well as the implications for employees exchanging shares in Carbon Revolution Limited for shares in Carbon Revolution plc. Additionally, the notice addresses the income tax implications for shareholders receiving a return of capital from Sunland Group Limited, and for entities receiving specified payments from an Allianz Guaranteed Income for Life life policy. The rulings are designed to provide clarity on these specific tax issues, ensuring that affected taxpayers understand their obligations. The Commissioner's determinations also clarify the types of expenses that can be taken into account for early stage innovation company tax incentives, and provide updated estimates of the value of goods taken from stock for private use in certain industries. These rulings and determinations are effective from specified dates and apply to taxpayers who are directly involved in the transactions or circumstances outlined in the respective rulings and determinations.
Key Provisions
The Commissioner of Taxation has issued several public rulings and determinations, effective from 22 November 2023, as detailed in the notifiable instrument F2023N00555. These rulings and determinations provide clarity on the tax implications for various transactions and entities. CR 2023/61 (section 1) applies to shareholders of Argo Investments Limited from 1 July 2023 to 30 June 2028, detailing the tax consequences of receiving shares in lieu of dividends under the Argo Investments Limited Dividend Substitution Share Plan. Similarly, CR 2023/62 (section 2) pertains to shareholders of Argo Global Listed Infrastructure Limited under the same date range and circumstances.
CR 2023/63 (section 3) addresses the tax implications for employees of Carbon Revolution Limited who exchanged shares for Carbon Revolution plc shares, effective from 1 July 2020 to 30 June 2024. CR 2023/64 (section 4) outlines the tax treatment for Sunland Group Limited shareholders receiving a return of capital payment on 1 November 2023, applicable from 1 July 2023 to 30 June 2024. PR 2023/24 (section 5) covers the income tax consequences for entities receiving specified payments from the Allianz Guaranteed Income for Life policy, effective from 24 November 2023 to 30 June 2026.
TD 2023/6 (section 6) provides clarification on expenses that are taken into account in determining whether a company meets the requirements of an early stage innovation company, applicable to years of income commencing both before and after its date of issue. TD 2023/7 (section 7) updates the acceptable estimates of the value of goods taken from stock for private use by taxpayers in named industries, effective for the 2023–24 income year.
The obligations imposed on the entities and individuals governed by these rulings and determinations include compliance with the specified tax treatments and reporting requirements. Failure to adhere to these rulings may result in discrepancies in tax reporting and potential audits or reviews by the Australian Taxation Office. Non-compliance could lead to penalties under the Taxation Administration Act 1953, including fines and interest on unpaid taxes. In severe cases, it may also result in criminal charges, particularly if the non-compliance is deemed to be willful or fraudulent.