Notice of Rulings 28 April 2021

Overview

The Taxation Administration Act 1953, enacted by the Australian Parliament, addresses the need for clear guidance on tax matters through the issuance of public rulings and notices. The Commissioner of Taxation, Chris Jordan, issues these rulings to provide taxpayers with certainty and to ensure consistent application of the law. This notifiable instrument, issued on 28 April 2021, includes public rulings and an addendum that provide specific guidance on the use of the FTC Manager telematics and technology product for fuel tax credits, as well as grants provided by the Australian Sports Commission under the Direct Athlete Incentive Scheme. These rulings aim to clarify the tax implications for businesses using such products and services, thereby promoting compliance and reducing disputes over the interpretation of tax laws. The rulings and addendum are available on the ATO website, ensuring that taxpayers have access to the necessary information to meet their obligations.

Scope and Application

The notice of rulings issued by the Commissioner of Taxation under the Taxation Administration Act 1953 provides clarification on specific tax matters, applying to entities and individuals who fall under the scope of the rulings. The rulings concern the use of Navman Wireless Australia Pty Limited's FTC Manager for fuel tax credits, specifically addressing when the Fleet Summary Report and GPS Data Report generated from this product can be used as records for fuel tax credit purposes. The rulings apply to those who use the FTC Manager telematics and technology product for apportioning taxable fuel acquired and used in vehicles and auxiliary equipment in carrying on their enterprise for fuel tax credit purposes. These rulings are effective from 1 July 2020 to 30 June 2022, providing a two-year window for application. Additionally, the notice includes an addendum to an existing ruling regarding income tax and grants provided by the Australian Sports Commission under the Direct Athlete Incentive Scheme, which applies from 4 March 2015. This notifiable instrument extends the Commissioner’s ability to provide further clarification on tax matters through public rulings, which can be accessed via the Australian Taxation Office’s website.

Key Provisions

The notice of rulings provided by the Commissioner of Taxation outlines several public rulings and an addendum that are pertinent to taxpayers and their advisors. CR 2021/30 (section 1) explains the conditions under which the Fleet Summary Report and GPS Data Report, generated from the FTC Manager telematics and technology product, can be used as a record for fuel tax credit purposes. According to this ruling, these reports can serve as a record, but they should not be considered as the sole record for these purposes. This ruling is applicable from 1 July 2020 to 30 June 2022. PR 2021/2 (section 2) details the tax consequences for fuel tax credit clients of Navman Wireless Australia Pty Limited who are registered for goods and services tax and use the FTC Manager for apportioning taxable fuel used in their vehicles and auxiliary equipment. This ruling is intended to guide these clients on the tax implications associated with their use of the FTC Manager. Similar to CR 2021/30, this ruling is also effective from 1 July 2020 to 30 June 2022. The obligations imposed by these rulings primarily involve ensuring that fuel tax credit clients understand and comply with the requirements for using the FTC Manager as part of their record-keeping obligations. This includes maintaining the necessary documentation and ensuring that the Fleet Summary Report and GPS Data Report are used appropriately as records for fuel tax credit purposes. Additionally, the rulings aim to clarify the tax implications for clients using the FTC Manager, thereby facilitating compliance with tax obligations. In terms of consequences for non-compliance, although the notice of rulings does not explicitly state penalties or offences, breaches of the tax law in general can result in significant penalties. For example, under the Taxation Administration Act 1953, penalties can include fines and, in severe cases, imprisonment. The specific penalties depend on the nature and severity of the non-compliance, but they can be substantial, reflecting the importance of adhering to tax obligations and rulings provided by the Commissioner of Taxation.