Notice of Rulings and Withdrawal of Rulings 20 April 2022

Overview

The Notice of Rulings and Withdrawal of Rulings 2022, issued on 20 April 2022, constitutes a notifiable instrument under the Taxation Administration Act 1953, enacted to streamline the process of public rulings and their amendments or withdrawals. This instrument, issued by the Commissioner of Taxation, Chris Jordan, is designed to clarify and update the tax obligations and entitlements of businesses and individuals in various contexts, ensuring that taxpayers have the necessary information to comply with the law. The policy objective of this notice is to provide clarity and certainty in tax matters by issuing, amending, or withdrawing public rulings as necessary to reflect changes in legislation, administrative practice, or other relevant factors. This notifiable instrument introduces new public rulings, such as CR 2022/39 regarding the fringe benefits tax consequences for employers engaging EFM Corporate Pty Ltd for health and fitness equipment services, and amends existing rulings like TD 2021/3 to update the list of countries for food and drink expenses under section 31G of the Fringe Benefits Tax Assessment Act 1986. Simultaneously, it withdraws several public rulings, including TD 2016/1 to TD 2016/7, as their dates of effect have expired. The notice aims to ensure that taxpayers have access to the most current and relevant tax guidance by either introducing new rulings or updating existing ones, while also removing outdated rulings to prevent confusion and ensure compliance with the most current tax laws.

Scope and Application

The Notice of Rulings and Withdrawal of Rulings 2022 issued by the Commissioner of Taxation under the Taxation Administration Act 1953 outlines the issuance of certain public rulings and the withdrawal of others, all of which pertain to fringe benefits tax matters. The rulings affect employers and employees, particularly those engaged in industries involving the provision of health and fitness equipment services or those receiving living-away-from-home allowance fringe benefits. This notice has a national reach within Australia, affecting entities and individuals subject to the Fringe Benefits Tax Assessment Act 1986. The rulings apply to specific tax years, from 1 April 2021 to 31 March 2028 for some and from 1 April 2016 to 20 April 2022 for others, after which certain rulings have been withdrawn as their effective dates have expired. The notice provides updated information and clarifications that may be applied in tax assessments and compliance activities, with the detailed provisions and amendments available for reference on the ATO website.

Key Provisions

The Notice of Rulings and Withdrawal of Rulings 2022 (F2022N00101) includes notifications about certain public rulings issued by the Commissioner of Taxation under the Taxation Administration Act 1953. In this notice, there is one new public ruling (CR 2022/39) that sets out the fringe benefits tax consequences for employers engaging EFM Corporate Pty Ltd to provide health and fitness equipment to their employees, applicable from 1 April 2021 to 31 March 2028. Additionally, there is an addendum to an existing ruling (TD 2021/3) that updates the list of countries for determining reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the fringe benefits tax year commencing on 1 April 2021. Furthermore, several rulings from 2016 (TD 2016/1 to TD 2016/7) are being withdrawn, as their effective dates have ceased. Entities governed by this legislation, such as employers, need to be aware of the fringe benefits tax implications when they engage EFM Corporate Pty Ltd to provide health and fitness equipment to their employees, as specified in CR 2022/39. Employers must also ensure they are using the updated list of countries in TD 2021/3 to determine reasonable amounts for food and drink expenses for employees receiving a living-away-from-home allowance fringe benefit. Moreover, it is essential that these entities no longer rely on the withdrawn rulings (TD 2016/1 to TD 2016/7) as their effective dates have ceased. Failure to adhere to the provisions of this legislation may result in incorrect fringe benefits tax calculations, potentially leading to tax liabilities or penalties. The Commissioner of Taxation may take enforcement action against entities that do not comply with the public rulings, which may result in financial penalties or other consequences as prescribed by the relevant taxation laws. The maximum penalties for non-compliance with taxation laws can vary depending on the nature and severity of the breach, and may include fines, imprisonment, or both.