Notice of Rulings and Withdrawal of Rulings 29 November 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, 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 |
CR 2023/65 | Venus Metals Corporation Limited – in specie distribution of Rox Resources Limited shares | This Ruling sets out the income tax consequences of the return of capital and dividend amounts which formed the in specie distribution of shares in Rox Resources Limited to shareholders of Venus Metals Corporation Limited on 12 July 2023. The Ruling applies to the shareholders specified in the Ruling from 1 July 2023 to 30 June 2024. |
CR 2023/66 | Judo Capital Holdings Limited – Judo Capital Notes | This Ruling sets out the income tax consequences for entities who acquired Judo Capital Notes issued by Judo Capital Holdings Limited. The Ruling applies to the entities specified in the Ruling from 1 July 2023 to 17 November 2031. |
PR 2023/25 | XLD Commodities Pty Ltd – XLD Grain & Fertiliser Prepayment Program | This Ruling sets out the income tax consequences for entities that participate as a customer in the XLD Grain & Fertiliser Prepayment Program offered by XLD Commodities Pty Ltd. The Ruling applies to the specified customers that enter into the Program from 1 Juy 2023 to 30 June 2026. |
NOTICE OF WITHDRAWAL |
Ruling number | Subject | Brief description |
TD 2018/10 | Income tax: value of goods taken from stock for private use for the 2017–18 income year | TD 2018/10 is being withdrawn as its period of effect has passed. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. |
Overview
F2023N00569 is a notifiable instrument issued by the Commissioner of Taxation on 29 November 2023 under the Taxation Administration Act 1953. This instrument provides notice of certain public rulings and the withdrawal of one previous ruling, offering taxpayers clarity on specific income tax consequences relevant to various transactions. The rulings pertain to the income tax implications for specific entities involved in particular distributions and prepayment programs, thereby addressing the need for precise tax guidance in complex financial arrangements. The objective is to ensure taxpayers are adequately informed and can comply with tax obligations accurately, reflecting the policy intent to provide transparent and timely tax advice.
Scope and Application
The notice issued by the Commissioner of Taxation, Chris Jordan, under the Taxation Administration Act 1953, pertains to public rulings and the withdrawal of certain determinations. It identifies specific rulings that set out the income tax consequences for particular transactions involving entities such as Venus Metals Corporation Limited, Judo Capital Holdings Limited, and XLD Commodities Pty Ltd, with the rulings applying to specified shareholders or entities during designated periods. The rulings cover matters such as the in specie distribution of shares, the acquisition of Judo Capital Notes, and participation in the XLD Grain & Fertiliser Prepayment Program, each applying from a specific start date to a particular end date. Additionally, the notice includes the withdrawal of Determination TD 2018/10 concerning the value of goods taken from stock for private use for the 2017-18 income year, due to the passage of its effective period. This notice is applicable to the Commonwealth of Australia and extends its reach to those entities and transactions specified within the rulings and the withdrawn determination.
Key Provisions
The notifiable instrument issued by the Commissioner of Taxation under the Taxation Administration Act 1953 (sections 358-5(4) and 358-20(1)) contains several significant updates and clarifications regarding tax rulings. Firstly, Ruling CR 2023/65 (section 358-5(4)) addresses the income tax consequences for Venus Metals Corporation Limited shareholders related to the in specie distribution of Rox Resources Limited shares on 12 July 2023. This ruling applies to the specific shareholders from 1 July 2023 to 30 June 2024 and provides clarity on the tax implications of this distribution. Secondly, Ruling CR 2023/66 (section 358-5(4)) outlines the income tax consequences for entities that have acquired Judo Capital Notes issued by Judo Capital Holdings Limited. This ruling applies to the specified entities from 1 July 2023 to 17 November 2031, providing tax guidance on the acquisition of these notes. Thirdly, Ruling PR 2023/25 (section 358-5(4)) explains the income tax consequences for entities participating as customers in the XLD Grain & Fertiliser Prepayment Program offered by XLD Commodities Pty Ltd. This ruling applies to the specific customers entering into the program from 1 July 2023 to 30 June 2026, detailing the tax implications of this prepayment arrangement.
The obligations imposed by these rulings are clear and specific to the entities and time periods mentioned. For instance, shareholders of Venus Metals Corporation Limited must adhere to the tax guidelines provided in Ruling CR 2023/65 from 1 July 2023 to 30 June 2024. Similarly, entities acquiring Judo Capital Notes must follow the tax implications as outlined in Ruling CR 2023/66 from 1 July 2023 to 17 November 2031. Entities participating in the XLD Grain & Fertiliser Prepayment Program must comply with the tax guidance in Ruling PR 2023/25 from 1 July 2023 to 30 June 2026. These rulings are legally binding for the specified periods and entities, providing a framework for tax compliance.
Additionally, the instrument includes the withdrawal of Ruling TD 2018/10 (section 358-20(1)), which concerned the income tax value of goods taken from stock for private use for the 2017-18 income year. This ruling is withdrawn as its period of effect has passed, although it will remain legally binding on the Commissioner for the relevant period to which it relates. The withdrawal of this ruling ensures that the Commissioner's obligations are updated to reflect the current tax environment. It is essential for taxpayers to be aware of these changes and ensure they are compliant with the latest rulings and withdrawals. Failure to comply with these obligations may result in tax consequences, including potential penalties or reassessments by the Commissioner.