Notice of Rulings

Overview

The Commissioner of Taxation, Chris Jordan, has issued a series of rulings to clarify the tax positions of certain entities involved in specific financial schemes. The rulings, numbered CR 2017/75, CR 2017/76, and CR 2017/77, cover the tax implications for holders of 360 Capital Group Limited stapled securities, employers using the EZY2C telematics system for car log book and odometer record keeping, and registered Unitholders of Dexus Funds Management Limited Capital Reallocation, respectively. These rulings were introduced to provide clarity and certainty to taxpayers involved in these particular schemes and were enacted to address the need for specific tax guidance in these areas. They apply from their respective dates and continue to apply to all entities within the specified class who entered into the specified scheme during the term of the ruling. The rulings are available for review on the Australian Taxation Office's website.

Scope and Application

The Commissioner of Taxation has issued three rulings under the Commonwealth of Australia’s taxation laws, each addressing specific tax matters related to income tax and fringe benefits tax for certain entities and schemes. CR 2017/75 pertains to holders of 360 Capital Group Limited stapled securities, providing clarity on the tax treatment of special dividends and the rebalancing of the stapled security structure for the specified period from 1 July 2017 to 30 June 2018, with ongoing applicability for entities that entered into the scheme during this period. Similarly, CR 2017/77 addresses the income tax implications for registered Unitholders of Dexus Funds Management Limited Capital Reallocation, covering the same period from 1 July 2017 to 30 June 2018, and extending to entities involved in the scheme during the Ruling's term. CR 2017/76 focuses on fringe benefits tax for employers using the EZY2C telematics system for car log book and odometer record-keeping requirements, applicable from 1 April 2017 to 31 March 2022, with continued application to entities within the specified class that entered into the scheme during the Ruling's term. These rulings provide specific guidance on tax obligations and are instrumental for entities involved in the specified schemes, ensuring compliance with the relevant tax laws.

Key Provisions

Ruling CR 2017/75 pertains to the income tax implications of holding 360 Capital Group Limited stapled securities, detailing the Commissioner's position on the special dividend and the rebalancing of the stapled security structure (section 1). Similarly, Ruling CR 2017/76 addresses the fringe benefits tax obligations of employers who utilise the EZY2C telematics system for maintaining car log books and odometer records (section 2). Finally, Ruling CR 2017/77 outlines the Commissioner's stance on the income tax consequences for registered unitholders of Dexus Funds Management Limited Capital Reallocation (section 3). Each ruling imposes specific obligations on the relevant parties. For CR 2017/75, it is essential that holders of 360 Capital Group Limited stapled securities understand the tax implications of their holdings and the rebalancing of their securities. For CR 2017/76, employers are required to accurately record and maintain car log books and odometer records using the EZY2C telematics system in compliance with fringe benefits tax regulations. In CR 2017/77, registered unitholders of Dexus Funds Management Limited must be aware of the tax treatment of their capital reallocation. The breaches of these rulings can lead to various consequences. Non-compliance with the provisions of these rulings may result in the reassessment of taxes, additional penalties, and interest. For example, if employers fail to comply with the requirements set out in Ruling CR 2017/76, they may face penalties under the Fringe Benefits Tax Assessment Act 1986. Additionally, for CR 2017/75 and CR 2017/77, the Commissioner has the authority to issue amended assessments and potentially pursue legal action for significant non-compliance. The specific penalties, including the maximum fines, vary according to the nature and extent of the breach and are detailed in the relevant tax legislation.