Notice of Rulings

Overview

The Commissioner of Taxation, Chris Jordan, has issued a series of rulings through the Australian Taxation Office, which are available on their website. These rulings, CR 2017/60, CR 2017/61, and CR 2017/62, aim to clarify the application of tax laws in specific circumstances, namely for corporate clients of Salary Packaging Australia Pty Ltd who participate in their bus travel benefit scheme, clients of Better Driver Pty Ltd using in-vehicle solutions for fuel tax credit purposes, and employees of the Australian Trust for Conservation Volunteers under their early retirement scheme, respectively. Each ruling delineates the Commissioner's position on particular tax matters and specifies the timeframe during which the ruling is applicable, providing necessary guidance and certainty for the affected taxpayers.

Scope and Application

The rulings provided by the Commissioner of Taxation, Chris Jordan, are specific in their application and scope, targeting particular corporate practices and schemes in relation to fringe benefits tax, fuel tax, and income tax. CR 2017/60 addresses employers who are clients of Salary Packaging Australia Pty Ltd (SPA) and who provide their employees with a smartcard for bus travel, outlining the Commissioner's position on the fringe benefits tax implications of such travel arrangements. This ruling applies to employers and employees involved in the scheme from 1 April 2017 to 31 March 2022. CR 2017/61 pertains to clients of Better Driver Pty Ltd who use the BetterDriver In-Vehicle Solution for calculating fuel tax credits. The ruling applies to businesses registered for goods and services tax that use the in-vehicle solution for determining kilometres travelled and fuel used, with the ruling effective from 22 March 2017 to 30 June 2020. CR 2017/62 concerns the income tax treatment of employees of the Australian Trust for Conservation Volunteers who participate in the early retirement scheme, applying from 6 September 2017 to 30 June 2018 and continuing to apply to entities within the specified class who entered into the scheme during the term of the ruling. These rulings are designed to provide clarity and certainty to the relevant entities in their compliance with tax obligations.

Key Provisions

The Commissioner of Taxation has issued three rulings that provide specific guidance on fringe benefits tax, fuel tax, and income tax. Ruling CR 2017/60 (paragraphs 1 and 2) outlines the Commissioner's position on employers who are clients of Salary Packaging Australia Pty Ltd and provide their employees with a smartcard for bus travel. This Ruling is applicable from 1 April 2017 to 31 March 2022 (paragraph 2). Ruling CR 2017/61 (paragraphs 3 and 4) pertains to clients of Better Driver Pty Ltd who use the BetterDriver In-Vehicle Solution for calculating kilometres travelled and fuel used in a vehicle as a record for fuel tax credit purposes. This Ruling is applicable from 22 March 2017 to 30 June 2020 (paragraph 4). Lastly, Ruling CR 2017/62 (paragraphs 5 and 6) sets out the Commissioner's position on employees of the Australian Trust for Conservation Volunteers who receive a payment under the early retirement scheme. This Ruling is applicable from 6 September 2017 to 30 June 2018 and continues to apply after 30 June 2018 to all entities within the specified class who entered into the specified scheme during the term of the Ruling (paragraph 6). These rulings impose certain obligations and requirements on the parties or entities they govern. For instance, employers who are clients of Salary Packaging Australia Pty Ltd must provide their employees with a smartcard for bus travel and ensure compliance with the fringe benefits tax provisions outlined in Ruling CR 2017/60 (paragraph 1). Similarly, clients of Better Driver Pty Ltd must use the BetterDriver In-Vehicle Solution for calculating kilometres travelled and fuel used in a vehicle as a record for fuel tax credit purposes, as per Ruling CR 2017/61 (paragraph 3). Lastly, employees of the Australian Trust for Conservation Volunteers who receive a payment under the early retirement scheme must adhere to the income tax provisions outlined in Ruling CR 2017/62 (paragraph 5). There are potential consequences for non-compliance with these rulings. Although specific penalties are not mentioned in the text, it is important to note that breaches of Australian tax laws can result in both civil and criminal penalties. Civil penalties may include fines, interest charges, and penalties for late lodgment or payment. Criminal penalties may include imprisonment, fines, or both, depending on the severity of the offence and the discretion of the court. It is crucial for parties and entities governed by these rulings to ensure compliance to avoid any potential legal consequences.