Notice of Rulings 5 July 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 |
TD 2023/4 | Income tax: use of an individual’s fame by related entities | This Determination applies to arrangements where an individual with fame establishes an entity and enters into an agreement with that entity for the use of their name, image, likeness, identity, reputation and signature. This Determination applies to years of income commencing both before and after its date of issue. |
CR 2023/34 | The Illawarra Community Housing Trust Ltd – deductibility of donations made under a payment direction deed | This Ruling sets out the income tax consequences of a landlord paying donation amounts to the Illawarra Community Housing Trust Ltd by way of a payment direction deed. This Ruling applies from 1 July 2022. |
CR 2023/35 | Tasmanian Irrigation Pty Ltd – water entitlements roll-over | This Ruling sets out the income tax consequences for water entitlement holders in any of the 3 South East Irrigation Schemes who convert their water entitlements to the Greater South East Irrigation Scheme located in Tasmania. This Ruling applies from 1 July 2022 to 30 June 2024. |
CR 2023/36 | YWCA Canberra – deductibility of donations under a payment direction deed | This Ruling sets out the income tax consequences of a landlord paying donation amounts to YWCA Canberra by way of a payment direction deed. This Ruling applies from 1 July 2023 to 30 June 2028. |
NOTICE OF ADDENDA |
Ruling number | Subject | Brief description |
CR 2013/66 | Fringe benefits tax: employers who use the Navman Wireless Australia telematics system for car log book records and for odometer records | This Addendum amends CR 2013/66 to advise of enhancements to increase accuracy and compliance of recording. The Addendum applies from 30 May 2023. |
Overview
The Taxation Administration Act 1953, enacted by the Commonwealth Parliament, provides the legal framework for the administration of taxation laws in Australia. It was introduced to address the need for a comprehensive and efficient system to manage and enforce tax laws. The Act was developed to ensure that taxpayers comply with their obligations and to facilitate the collection of revenue for the government. The notice of rulings, issued on 5 July 2023 by the Commissioner of Taxation, Chris Jordan, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, pertains to various public rulings that offer clarifications and guidance on specific tax matters. These rulings address issues such as the income tax implications for individuals who lend their fame to related entities, the deductibility of donations made under a payment direction deed to certain housing trusts, and the tax consequences for water entitlement holders converting their entitlements in specified irrigation schemes. The policy objective behind these rulings is to provide certainty and clarity to taxpayers and to assist them in understanding their tax obligations.
Scope and Application
The Notice of Rulings issued on 5 July 2023 by the Commissioner of Taxation, Chris Jordan, under the Taxation Administration Act 1953, provides public rulings that address specific issues related to income tax. These rulings apply to various entities and individuals involved in particular transactions and arrangements, including the use of an individual’s fame by related entities, the deductibility of donations made to certain community housing trusts, and the tax consequences for water entitlement holders converting their entitlements. The rulings are applicable from specific dates, with some rulings having a limited duration, such as the ruling for the Illawarra Community Housing Trust Ltd, which applies from 1 July 2022 to 30 June 2024. Additionally, an addendum to an existing ruling concerning fringe benefits tax for employers using the Navman Wireless Australia telematics system for car log book and odometer records was also issued, effective from 30 May 2023. These rulings provide clarity and guidance on specific tax issues, enhancing accuracy and compliance within the relevant industries and transactions.
Key Provisions
The Notifiable Instrument F2023N00202 issued by the Commissioner of Taxation, Chris Jordan, contains public rulings that provide clarity on various tax-related matters. These rulings cover different scenarios, such as the use of an individual’s fame by related entities (TD 2023/4), the deductibility of donations made by landlords to specific housing trusts (CR 2023/34, CR 2023/36), and the tax implications of converting water entitlements in Tasmania (CR 2023/35). These rulings are designed to guide taxpayers on how certain transactions and arrangements are treated for income tax purposes, with some applying retroactively from the date of issue and others effective from specific dates.
Under the rulings, entities and individuals are required to comply with the specific tax treatments outlined for their particular transactions. For instance, if an individual with fame establishes an entity and enters into an agreement for the use of their personal attributes, they must follow the rules set out in TD 2023/4. Similarly, landlords making donations to specified housing trusts or entities must adhere to the conditions outlined in CR 2023/34, CR 2023/35, and CR 2023/36. Failure to comply with these rulings can result in incorrect tax assessments and potential penalties.
The Notifiable Instrument also includes an addendum to an earlier ruling (CR 2013/66) concerning the Fringe Benefits Tax for employers using the Navman Wireless Australia telematics system. This addendum, which applies from 30 May 2023, aims to enhance the accuracy and compliance of recording car log book and odometer data, thereby ensuring that employers meet their tax obligations correctly. Breaches of these requirements can lead to tax liabilities and potential penalties for non-compliance.
In terms of penalties and consequences, while the Notifiable Instrument itself does not specify penalties, breaches of the tax rulings can lead to significant financial repercussions. Taxpayers who fail to comply with the rulings may be subject to penalties under the Taxation Administration Act 1953, which can include fines and interest on unpaid taxes. Additionally, in cases where the non-compliance is deemed to be deliberate or reckless, criminal charges may be pursued, leading to more severe penalties.