Notice of Rulings 6 September 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 2023/5 | Income tax: aggregated turnover and connected entities – Commissioner’s discretion that an entity does not ‘control’ another entity | This Determination provides guidance on particular issues that have emerged from the administration of the discretion in subsection 328‑125(6) of the Income Tax Assessment Act 1997 to determine that an entity does not control another entity. This Determination applies both before and after its date of issue. |
CR 2023/48 | Abacus Property Group – de-stapling and re-stapling as Abacus Group and Abacus Storage King | This Ruling sets out the income tax consequences for the de-stapling of the Abacus Property Group (Abacus) and its re-stapling as the Abacus Group stapled group and the Abacus Storage King stapled group for securityholders who held stapled securities in Abacus just before 3 August 2023. This Ruling applies from 1 July 2023 to 30 June 2024. |
CR 2023/49 | Navman Wireless Australia Pty Limited – use of FTC Manager for fuel tax credits | This Ruling sets out when reports generated from the FTC Product can be used as a record for fuel tax credit record-keeping purposes for FTC Data level clients. This Ruling applies on or after 1 July 2023 to 30 June 2024. |
PR 2023/17 | Fuel tax: Navman Wireless Australia Pty Limited and FTC Manager – FTC Self Claim level clients | This Ruling sets out the Commissioner’s view on when reports generated by the FTC Manager Product are records that can be used to support information for fuel tax credit purposes for FTC Self Claim level clients. This Ruling applies from 1 July 2023 to 30 June 2024. |
NOTICE OF ADDENDA |
Ruling number | Subject | Brief description |
TD 2005/15 | Income tax: does subsection 23AG(2) of the Income Tax Assessment Act 1936 apply where foreign earnings are exempt from tax in the foreign country for a reason listed in that subsection as well as a reason not listed? | This Addendum amends Taxation Determination TD 2005/15 to note the decision in Tanddo and Commissioner of Taxation [2022] AATA 4143 which provides that positive action is usually required to come within the operation of a memorandum of understanding or a general agreement on development cooperation for the purpose of subsection 23AG(2). This Addendum applies before and after its date of issue. |
TD 2005/14 | Income tax: does subsection 23AG(2) of the Income Tax Assessment Act 1936 apply where foreign earnings are exempt from tax in a foreign country for one or more of the reasons listed in that subsection and there is no additional reason for exempting that income? | This Addendum amends TD 2005/14 to modernise it. This Addendum applies before and after its date of issue. |
TR 2013/7 | Income tax: foreign employment income: interpretation of subsection 23AG(1AA) of the Income Tax Assessment Act 1936 | This Addendum amends TR 2013/7 to confirm a member of the Australian Border Force is not a member of a disciplined force for the purpose of paragraph 23AG(1AA)(d) as set out in Willard and Commissioner of Taxation [2022] AATA 3723. This Addendum applies before and after its date of issue. |
CR 2023/20 | Navman Wireless Australia Pty Limited – use of FTC Manager for fuel tax credits | This Addendum amends CR 2023/20 to change the period of application of the Ruling. This Addendum applies from 1 July 2023. |
PR 2023/4 | Fuel tax: Navman Wireless Australia Pty Limited and FTC Manager – FTC Self Claim level clients | This Addendum amends PR 2023/4 to change the date effect of the Ruling. This Addendum applies from 1 July 2023. |
NOTICE OF ERRATUM |
Ruling number | Subject | Brief description |
CR 2023/46 | MetalsTech Limited – return of capital by way of specie distribution | This Erratum amends a typographical error in Class Ruling 2023/46. This Erratum applies from 23 August 2023. |
Overview
The Notice of Rulings dated 6 September 2023, issued by the Commissioner of Taxation under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953, addresses various public rulings that provide guidance on different tax matters. The purpose of this notice is to inform taxpayers of the rulings that can be accessed via the Australian Taxation Office's website. The rulings cover a range of issues, including the Commissioner’s discretion regarding the control of entities, the income tax consequences of restructuring within the Abacus Property Group, and the use of FTC Manager for fuel tax credits. This notice aims to ensure taxpayers are aware of the applicable tax treatments and obligations as specified in these rulings. The Commissioner of Taxation, Chris Jordan, issued this notice to ensure clarity and compliance with tax laws.
Scope and Application
The Notifiable Instrument F2023N00266 pertains to various public rulings issued by the Commissioner of Taxation under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953. These rulings, which include determinations, rulings, and addenda, are directed at providing clarity and guidance on specific tax issues affecting entities and individuals in Australia. The rulings cover a range of subjects such as aggregated turnover, connected entities, de-stapling and re-stapling of security groups, and the use of certain products for tax record-keeping purposes. These instruments apply to entities and individuals who are subject to the Income Tax Assessment Act 1997 and the Income Tax Assessment Act 1936, and their application extends across Australia. The rulings are applicable from specified dates, often with transitional provisions that allow for their retrospective application to certain transactions. Notably, some rulings have been amended through addenda to correct errors or to adjust their effective dates, which further illustrates the dynamic nature of tax law and the importance of staying updated with official rulings.
Key Provisions
The notifiable instrument F2023N00266, issued by the Commissioner of Taxation, provides public rulings and amendments regarding various income tax matters, as well as an erratum. Section (1) of the instrument references rulings TD 2023/5, CR 2023/48, CR 2023/49, PR 2023/17, TD 2005/15, TD 2005/14, TR 2013/7, CR 2023/20, PR 2023/4, CR 2023/46, each of which offers guidance or clarifications on specific income tax issues and their application. For example, TD 2023/5 provides guidance on the discretion to determine that an entity does not control another entity, while CR 2023/48 explains the tax consequences of a de-stapling and re-stapling of securities. These rulings and amendments are designed to assist taxpayers in understanding their obligations under the Income Tax Assessment Act 1997 and other relevant legislation.
The obligations and requirements imposed by these rulings and amendments are primarily aimed at ensuring compliance with tax laws and providing clarity on specific tax issues. For instance, TD 2023/5 requires taxpayers to understand how the discretion applies to their particular circumstances, while CR 2023/48 necessitates that taxpayers who held stapled securities in Abacus Property Group before a certain date understand the tax implications of the de-stapling and re-stapling. Similarly, CR 2023/49 and PR 2023/17 outline the conditions under which reports generated from the FTC Manager Product can be used for fuel tax credit record-keeping purposes. These rulings provide detailed guidance to ensure taxpayers can correctly apply the relevant tax provisions.
There are no direct offences, penalties, or civil/criminal consequences outlined in the notifiable instrument itself. However, non-compliance with the guidance provided in these rulings could potentially lead to tax assessments, penalties, or interest charges if the Commissioner of Taxation determines that the taxpayer has not met their tax obligations. For example, if a taxpayer fails to correctly apply the guidance in TD 2023/5 or CR 2023/48, the Commissioner may adjust the taxpayer’s income tax assessment to reflect the correct tax liability, which could result in additional tax, penalties, or interest. It is important for taxpayers to carefully consider the implications of these rulings and ensure they comply with the tax laws as clarified by the Commissioner of Taxation.
The erratum in CR 2023/46 corrects a typographical error, ensuring that the guidance provided is accurate and reliable. This amendment highlights the importance of precision in tax rulings to avoid any misinterpretation that could lead to non-compliance or additional tax liabilities. While the notifiable instrument does not explicitly state penalties for errors in the rulings, any inaccuracies could indirectly lead to tax issues if taxpayers rely on incorrect information. Therefore, it is essential for taxpayers to stay updated with the latest rulings and amendments to ensure they are fully compliant with their tax obligations.