Notice of Rulings and Withdrawal of Rulings 29 June 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 ruling, copies of which can be obtained from ato.gov.au/law
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
TR 2022/1 | Income tax: effective life of depreciating assets (applicable from 1 July 2022) | This Ruling explains the methodology used by the Commissioner to make a determination of an effective life of an asset and lists effective life determinations made to date. This Ruling applies from 1 July 2022. |
TD 2022/9 | Income tax: is section 951A of the US Internal Revenue Code a provision of a law of a foreign country that corresponds to sections 456 or 457 of the Income Tax Assessment Act 1936 for the purpose of subsection 832‑130(5) of the Income Tax Assessment Act 1997? | This Ruling provides the ATO’s view in relation to whether the United States of America’s global intangible low-taxed income rules correspond with either section 456 of 457 in Australia’s controlled foreign company regime for the purpose of applying Australia’s hybrid mismatch rules. |
TD 2022/10 | Income tax: what are the reasonable travel and overtime meal allowances for the 2022–23 income year? | This Determination sets out the reasonable overtime meal expenses, and domestic and overseas travel rates, for the 2022–23 income year. This Determination applies from 1 July 2022 to 30 June 2023. |
CR 2022/59 | Cedar Woods Properties Limited – bonus share plan | This Ruling sets out the income tax consequences for shareholders of Cedar Woods Properties Limited who elect to receive bonus shares in lieu of dividends under the bonus share plan. This Ruling applies from 1 July 2022 to 30 June 2027. |
NOTICE OF ADDENDUM |
Ruling number | Subject | Brief description |
CR 2013/14 | Goods and services tax: goods and services supplied by dentists | This Ruling has been amended to update the list of goods and services in Attachment A. This Addendum applies from 1 July 2022. |
CR 2022/58 | Tabcorp Holdings Limited – demerger of The Lottery Corporation Limited | This Ruling has been amended to correct certain amounts. This Addendum applies from 22 June 2022. |
NOTICE OF WITHDRAWALS |
Ruling number | Subject | Brief description |
TR 2021/3 | Income tax: effective life of depreciating assets (applicable from 1 July 2021) | This Ruling is withdrawn with effect from 1 July 2022. |
TR 2010/3 | Income tax: Division 7A loans: trust entitlements | This Ruling is withdrawn on and with effect from 1 July 2022. |
Overview
The Taxation Administration Act 1953, enacted by the Australian Parliament, serves as a foundational statute for the administration of taxation laws in Australia. It provides the framework for the Commissioner of Taxation to issue public rulings and determine the effective life of depreciating assets, among other tax-related functions. The Notice of Rulings and Withdrawal of Rulings issued on 29 June 2022 under this Act addresses current and withdrawn public rulings to ensure taxpayers have access to the latest tax interpretations and guidance. The policy objective of these notifications is to maintain clarity and consistency in tax law application, thereby facilitating compliance and reducing disputes. These rulings and withdrawals reflect the ongoing adjustments and clarifications necessary to adapt to changing economic conditions and legislative amendments.
Scope and Application
The notice of rulings and withdrawal of rulings issued under the Taxation Administration Act 1953 by the Commissioner of Taxation, Chris Jordan, outlines several public rulings and the withdrawal of existing rulings, effective from various dates in 2022 and beyond. These rulings and determinations are applicable to taxpayers, including individuals and entities, and pertain to various aspects of income tax and goods and services tax. The rulings cover topics such as the effective life of depreciating assets, the interpretation of foreign tax provisions in relation to Australia's hybrid mismatch rules, travel and overtime meal allowances, and the income tax consequences of bonus share plans and corporate demergers. The geographic reach of these rulings is national, applying across all states and territories in Australia. The rulings may also be subject to amendments or further clarifications through subordinate instruments. Some rulings have specific effective dates, while others are applicable from the date of issue unless otherwise stated.
Key Provisions
The Commissioner of Taxation has issued several public rulings and withdrawn others under the Taxation Administration Act 1953. The operative sections of the Notifiable instrument (F2022N00148) include the issuance of new rulings (subsection 358-5(4)) and the withdrawal of existing rulings (subsection 358-20(1)). The rulings issued include TR 2022/1, which outlines the methodology for determining the effective life of depreciating assets, applicable from 1 July 2022; TD 2022/9, which explains the ATO’s view on whether section 951A of the US Internal Revenue Code corresponds with Australian tax laws; TD 2022/10, which sets the reasonable travel and overtime meal allowances for the 2022-23 income year; and CR 2022/59, detailing the income tax consequences for shareholders of Cedar Woods Properties Limited who elect to receive bonus shares. Additionally, there are two notices of addendum, CR 2013/14, which updates the list of goods and services supplied by dentists, and CR 2022/58, which corrects certain amounts in relation to the demerger of The Lottery Corporation Limited. The rulings TR 2021/3 and TR 2010/3 are withdrawn from 1 July 2022.
The Act imposes specific obligations on the ATO to provide clarity and guidance on tax laws through these rulings and determinations. The ATO must ensure that these documents are accessible to the public and that they reflect current legislative requirements and interpretations. For the rulings that apply to particular time periods, the ATO must ensure that they are reviewed and updated as necessary to reflect changes in the law or in the ATO’s interpretation of the law. For the withdrawn rulings, the ATO must take steps to ensure that they are no longer referenced or relied upon in tax assessments or disputes.
Breaches of the obligations under the Taxation Administration Act 1953 may have civil or criminal consequences. While the specific penalties for non-compliance with the Act are not detailed in the Notifiable instrument, general provisions of the Act provide for penalties for failure to comply with tax laws. These can include fines, imprisonment, or both, depending on the severity of the breach. For example, section 286-15 of the Taxation Administration Act 1953 imposes a penalty for failure to provide information required by the Commissioner, with penalties that can reach up to $2,200 for individuals and significantly higher for corporations. Additionally, section 286-25 imposes a penalty for making a false or misleading statement, with potential fines of up to $11,000 for individuals and $55,000 for corporations. These penalties underscore the importance of adhering to the obligations imposed by the Act.