COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
GSTD 2013/4 | Goods and services tax: where capital assets that diminish in value over time are utilised in making a supply, can the consideration provided by the supplier to acquire those assets be taken into account in determining whether the supply is GST‑free under subparagraph 38‑250(2)(b)(ii) of A New Tax System (Goods and Services Tax) Act 1999? | The Determination sets out the Commissioner’s opinion of the diminishing value of capital assets over time. The Determination applies both before and after its date of issue. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
GSTR 2003/15 | Goods and services tax: importation of goods into Australia | The Addendum amends Goods and Services Tax Ruling GSTR 2003/15 to: - take account of changes to the A New Tax System (Goods and Services Tax) Act 1999 made by the Tax Laws Amendment (2010 GST Administration Measures No.3) Act 2010 relating to international transport. These amendments apply to supplies that are made on or after 1 July 2010, but not to supplies of services to the extent that the supplies relate to a taxable importation made before 1 July 2010;
- take account of changes to Schedule 4 to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (Schedule 4) Act 2012 which took effect on 1 March 2013;
- update terminology to be consistent with the Customs Act 1901, for example ‘import declaration’ instead of ‘customs entry’; and
- update the Date of Effect section.
The Addendum applies on and from 1 July 2010. |
GSTR 2008/3 | Goods and services tax: dealings in real property by bare trusts | The Addendum amends Goods and Services Tax Ruling GSTR 2008/3 to reflect amendments to the A New Tax System (Goods and Services Tax) Act 1999. In particular, the Addendum updates GSTR 2008/3 for amendments made to Subdivision 153‑B of the A New Tax System (Goods and Services Tax) Act 1999. The amendments to Subdivision 153‑B are in relation to principals and intermediaries. The Addendum also makes further minor amendments to GSTR 2008/3. The Addendum applies on and from 1 July 2010. |
GSTD 2001/2 | Goods and services tax: is the sale of goods by a lessor on expiry of a lease agreement a separate supply to the lease of the goods? | The Addendum amends Goods and Services Tax Determination GSTD 2001/2 to reflect the withdrawal and replacement of Goods and Services Tax Ruling GSTR 2000/1 by Goods and Services Tax Ruling GSTR 2013/2. The Addendum applies on and from 21 August 2013. |
GSTD 2004/1 | Goods and services tax: when will the requirement to hold a tax invoice or adjustment note be waived as a result of a court or tribunal decision? | The Addendum amends Goods and Services Tax Determination GSTD 2004/1 to update the Date of Effect section and the References section. The Addendum applies on and from 2 October 2013. |
CR 2013/25 | Goods and services tax: the GST treatment of fees and charges imposed by NSW councils in relation to cemeteries, facilities, leases, legal services, libraries and sales | The Addendum amends Class Ruling CR 2013/25 to take into account additional information provided by the applicant. The Addendum applies on and from 1 July 2013. |
CR 2013/32 | Goods and services tax: the GST treatment of Australian fees and charges imposed by NSW Councils for supplies in relation to building and property development applications and other related permits and approvals | The Addendum amends Class Ruling CR 2013/32 to take into account additional information provided by the applicant. The Addendum applies on and from 1 July 2013. |
CR 2013/39 | Goods and services tax: the GST treatment of fees and charges imposed by NSW councils in relation to water, sewerage and drainage supplies | The Addendum amends Class Ruling CR 2013/39 to take into account additional information provided by the applicant. The Addendum applies on and from 1 July 2013. |
CR 2013/41 | Goods and services tax: the GST treatment of fees and charges imposed by NSW councils in relation to enforcement activities, essential services, provision of information, use of professional and staff time and works | The Addendum amends Class Ruling CR 2013/41 to take into account additional information provided by the applicant. The Addendum applies on and from 1 July 2013. |
Overview
The Australian Taxation Office issued several rulings under the A New Tax System (Goods and Services Tax) Act 1999, primarily to clarify the application of the GST to various types of supplies and transactions. Enacted by the Australian Parliament, this Act was designed to introduce a uniform system of indirect taxation on a broad range of goods and services. The policy objective behind the Act was to replace a complex web of state-based wholesale taxes with a simplified, broad-based consumption tax, aiming to streamline the tax system and reduce its economic impact. The rulings issued under this Act provide specific guidance on complex issues such as the treatment of capital assets, importation of goods, dealings in real property by bare trusts, and the GST treatment of fees and charges imposed by local councils. These rulings are essential for ensuring compliance with the GST provisions and providing certainty to taxpayers and the ATO.
Scope and Application
The Commissioner of Taxation has issued several rulings and addenda that pertain to the A New Tax System (Goods and Services Tax) Act 1999, affecting various aspects of the goods and services tax (GST) regime. These rulings apply to entities and individuals involved in transactions that fall within the scope of the GST Act, including businesses, suppliers, and consumers. The rulings cover a wide range of GST-related topics such as the diminishing value of capital assets, importation of goods, dealings in real property by bare trusts, and the GST treatment of fees and charges imposed by New South Wales councils. The geographic reach of these rulings is national, as they are issued by the Commonwealth under the authority of the Australian Taxation Office. The rulings and their addenda provide clarifications and updates to existing tax law, taking into account legislative changes and amendments to related acts and schedules. These rulings apply both retroactively and prospectively from their respective dates of issue, with some provisions applying from specific dates such as 1 July 2010 or 21 August 2013. The application of these rulings may be further extended or restricted through subordinate instruments, which are not detailed in the provided text.
Key Provisions
The primary operative sections of the legislation revolve around various rulings and addenda that provide clarification on specific aspects of the Goods and Services Tax (GST) as outlined in the A New Tax System (Goods and Services Tax) Act 1999. GSTD 2013/4 (section 1) addresses the treatment of capital assets that diminish in value over time and their consideration in determining whether a supply is GST-free. GSTR 2003/15 (section 2) and its addendum (section 3) provide guidance on the importation of goods into Australia, taking into account changes to the relevant acts and schedules, and updating terminology for consistency with the Customs Act 1901. GSTR 2008/3 (section 4) and its addendum (section 5) focus on the GST implications of dealings in real property by bare trusts, particularly with respect to principals and intermediaries. GSTD 2001/2 (section 6) and its addendum (section 7) discuss the GST treatment of the sale of goods by a lessor on expiry of a lease agreement. GSTD 2004/1 (section 8) and its addendum (section 9) clarify the circumstances under which the requirement to hold a tax invoice or adjustment note may be waived due to a court or tribunal decision.
The obligations imposed by these rulings and addenda primarily concern the proper classification and reporting of GST liabilities by businesses and individuals. For instance, businesses involved in the importation of goods must ensure they comply with the updated rules and terminology as specified in GSTR 2003/15 and its addendum. Similarly, entities dealing in real property by bare trusts must adhere to the updated provisions in GSTR 2008/3 and its addendum. The rulings also necessitate that lessors and suppliers of goods consider the diminishing value of capital assets when determining GST liabilities, as outlined in GSTD 2013/4 and GSTD 2001/2 and their respective addenda. Furthermore, the addendum to GSTD 2004/1 requires businesses to be aware of the circumstances under which the requirement for tax invoices or adjustment notes may be waived.
In terms of consequences for non-compliance, the legislation does not explicitly detail specific offences, penalties, or civil/criminal consequences within the provided text. However, general provisions under the A New Tax System (Goods and Services Tax) Act 1999 suggest that failure to comply with GST obligations can result in penalties. For example, under section 178-10 of the Act, penalties may be imposed for non-lodgement of tax returns, incorrect reporting, and failure to hold or provide tax invoices. The maximum penalties for such offences can vary, but they often include fines up to a significant percentage of the tax shortfall or, in severe cases, imprisonment. It is important for taxpayers to ensure they meet their obligations to avoid these potential consequences.