COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
CR 2015/69 | Income tax: capital gains tax: scrip for scrip rollover – exchange of shares in Accenture SCA for shares in Accenture plc | The Ruling sets out the Commissioners position for individual shareholders of Accenture SCA. The Ruling applies from 1 July 2015 to 30 June 2016. |
CR 2015/70 | Income tax: treatment of transfer payments to employees in connection with the sale of the Home Care Service business | The Ruling sets out the Commissioners position for all permanent full time and part time employees of the State of New South Wales (the State) currently working within the Home Care Service Staff Agency or the Department of Family and Community Services who: - are engaged in providing services supporting older people and younger people with a disability and their carers for the Home Care Service of New South Wales (HCS), and
- at the time of the sale of HCS’ operations cease employment with the State, and
- commence employment with the new service provider, and
- receive a ‘transfer payment’ under the scheme.
The Ruling applies from 2 September 2015 to 31 December 2016. |
Overview
The Australian Taxation Office, under the Commissioner of Taxation Chris Jordan, has issued two rulings in 2015 to clarify the tax treatment in specific scenarios for individuals involved in certain business transactions. Ruling CR 2015/69 addresses the capital gains tax implications for individual shareholders of Accenture SCA who exchange their shares for shares in Accenture plc, effective from 1 July 2015 to 30 June 2016. This ruling provides clarity on the scrip-for-scrip rollover provisions and their impact on the capital gains tax liabilities of these shareholders. Ruling CR 2015/70 deals with the income tax treatment of transfer payments made to employees of the State of New South Wales who are involved in the sale of the Home Care Service business. This ruling applies to employees who cease employment with the State and commence employment with the new service provider, and who receive a transfer payment under the scheme, from 2 September 2015 to 31 December 2016. The objective of these rulings is to ensure that taxpayers are aware of their tax obligations in these particular circumstances, thereby promoting compliance and reducing potential disputes with the tax office.
Scope and Application
The Commissioner of Taxation has issued two specific rulings, CR 2015/69 and CR 2015/70, which outline the tax treatment of certain transactions and payments. CR 2015/69 pertains to the capital gains tax implications for individual shareholders of Accenture SCA who exchange their shares for shares in Accenture plc. This ruling applies to these shareholders and operates within the period from 1 July 2015 to 30 June 2016. CR 2015/70, on the other hand, addresses the income tax treatment of transfer payments to employees of the State of New South Wales who are involved in the provision of home care services. Specifically, it applies to employees who are engaged in the Home Care Service and who receive a transfer payment upon the sale of the business to a new service provider. This ruling applies from 2 September 2015 to 31 December 2016. Both rulings aim to provide clarity on the tax treatment of these particular transactions and payments, ensuring compliance and certainty for the affected parties.
Key Provisions
The main operative sections of the Commissioner of Taxation's Rulings CR 2015/69 and CR 2015/70 address specific tax scenarios related to the exchange of shares in Accenture SCA for Accenture plc, and the treatment of transfer payments to employees following the sale of Home Care Service business, respectively. CR 2015/69 (paragraph 1) clarifies the tax implications for individual shareholders who exchange shares in Accenture SCA for shares in Accenture plc. This ruling is effective from 1 July 2015 to 30 June 2016. Similarly, CR 2015/70 (paragraph 2) provides guidance on the tax treatment of transfer payments made to employees who are involved in the provision of services for the Home Care Service of New South Wales, cease employment with the State, and subsequently commence employment with the new service provider. This ruling applies from 2 September 2015 to 31 December 2016.
These rulings impose specific obligations on the parties they govern. For CR 2015/69, individual shareholders of Accenture SCA must ensure that they are aware of the tax implications of exchanging their shares, as outlined in the Ruling. This includes understanding any capital gains tax liabilities that may arise from such transactions. For CR 2015/70, employees who transition from the State of New South Wales to the new service provider and receive a transfer payment must comply with the tax treatment specified in the Ruling. This includes properly reporting the transfer payment in their tax returns and being aware of any tax implications associated with these payments.
The Commissioner of Taxation's Rulings may lead to civil or criminal consequences if breached. While specific penalties are not detailed in the text provided, breaches of tax laws generally may result in civil penalties such as fines or additional tax liabilities. In more severe cases, criminal penalties, including imprisonment, may apply. The maximum penalties depend on the nature and extent of the breach, and can vary significantly. It is important for taxpayers to comply with these Rulings to avoid potential penalties and legal repercussions.