Notice of Rulings and Withdrawal of Ruling 6 July 2022
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, and under subsection 358-20(1) of Schedule 1 to the Taxation Administration Act 1953 of the withdrawal of the following public rulings, copies of which can be obtained from ato.gov.au/law
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
CR 2022/60 | BHP Group Limited – dividend by way of in specie distribution of Woodside Energy Group Ltd shares | This Ruling sets out the income tax consequences for BHP Group Limited shareholders who received a dividend by way of an in specie distribution of shares in Woodside Energy Group Ltd. This Ruling applies from 1 July 2021 to 30 June 2022. |
CR 2022/61 | Minotaur Exploration Ltd – reduction of share capital and scrip for scrip roll‑over | This Ruling sets out the income tax consequences for Minotaur Exploration Ltd shareholders who received a reduction of share capital by way of a transfer of shares in Demetallica Limited and/or shares in Andromeda Metals Limited in exchange for their Minotaur Exploration Ltd shares. This Ruling applies from 1 July 2021 to 30 June 2022. |
NOTICE OF WITHDRAWAL |
Ruling number | Subject | Brief description |
TD 2016/13 | Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2016-17 income year? | This Determination is being withdrawn from 7 July 2022 as its date of effect has ceased. |
Overview
The Notice of Rulings and Withdrawal of Ruling issued on 6 July 2022 by the Commissioner of Taxation, Chris Jordan, under the Taxation Administration Act 1953, addresses the need for up-to-date guidance on specific income tax matters for certain corporate transactions and historical allowances. This notifiable instrument, issued by the Australian Parliament, serves to provide clarity and certainty for taxpayers regarding the tax implications of specified corporate actions, as well as to withdraw outdated guidance that is no longer relevant. The policy objective is to ensure taxpayers have access to current and accurate tax rulings to facilitate compliance and to withdraw superseded rulings that no longer serve a useful purpose.
Scope and Application
The Notifiable instrument F2022N00161, issued by the Commissioner of Taxation on 6 July 2022, pertains to the notification of certain public rulings and the withdrawal of a previously issued public ruling under the Taxation Administration Act 1953. This instrument applies to taxpayers, specifically BHP Group Limited and Minotaur Exploration Ltd shareholders, and deals with the income tax consequences associated with the in specie distribution of shares and the reduction of share capital, respectively. Both rulings are effective from 1 July 2021 to 30 June 2022. Additionally, the instrument announces the withdrawal of Taxation Determination TD 2016/13, which provided guidance on reasonable travel and overtime meal allowance expenses for the 2016-17 income year, effective from 7 July 2022 due to the cessation of its date of effect. This notifiable instrument affects entities and individuals involved in the specified transactions within the stated timeframe, operating within the Commonwealth jurisdiction.
Key Provisions
The key operative sections of this notifiable instrument, F2022N00161, relate to the notification of public rulings and the withdrawal of certain tax determinations under the Taxation Administration Act 1953. Section 358-5(4) is invoked to notify new public rulings, while section 358-20(1) is used to withdraw existing rulings. These sections ensure that the public is informed about the Commissioner of Taxation's interpretations of tax laws, which are intended to guide taxpayers in understanding their obligations. The instrument specifies that the public rulings and withdrawn determinations can be accessed via the ATO website, ato.gov.au/law.
The obligations imposed by this instrument on taxpayers and entities are primarily informational and compliance-based. Taxpayers and entities must stay informed about the rulings that apply to their circumstances. For instance, BHP Group Limited shareholders and Minotaur Exploration Ltd shareholders must understand the tax consequences as outlined in CR 2022/60 and CR 2022/61, respectively, for the specified periods. Furthermore, entities and individuals who previously relied on TD 2016/13 for determining travel and overtime meal allowance expenses must cease doing so from 7 July 2022, as the determination has been withdrawn.
The Act does not directly impose penalties or other consequences for failing to comply with these notifications. However, it does emphasise the importance of taxpayers ensuring their compliance with current rulings and determinations. Any misinterpretation or non-compliance with the tax laws as clarified by these rulings could potentially lead to assessments, audits, and subsequent penalties if the ATO determines that tax has not been correctly paid. The maximum penalties for tax-related offences are stipulated elsewhere in the tax legislation and can include fines and interest on unpaid taxes.