The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from http://ato.gov.au/law.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
CR 2019/14 | Income tax: Monash Absolute Investment Company Limited – off-market share buy-back | The Ruling sets out the Commissioner’s position on the off-market share buy-back of of Monash Absolute Investment Company Limited announced on 20 June 2018. The Ruling applies to all specified entities who entered into the specified scheme during the term of the Ruling. |
CR 2019/15 | Income tax: Ardent Leisure Group – restructure | The Ruling sets out the Commissioner’s position on the restructure of Ardent Leisure Group which took place on 24 December 2018. The Ruling applies to all specified entities who entered into the specified scheme during the term of the Ruling. |
CR 2019/16 | Fringe benefits tax: employer clients of EML Payment Solution Limited who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 that make use of the Maxxia Wallet or Remserv Wallet | The Ruling sets out the Commissioner’s position on the fringe benefits tax consequences for employers hat make use of the Maxxia Wallet or Remserv Wallet. The Ruling applies from 1 April 2018 to 31 March 2024. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
TR 2013/3 | Income tax: research and development tax offsets: feedstock adjustments | The Addendum amends Taxation Ruling TR 2013/3 to clarify the Commissioner’s view of the law following the decision in GHP 104 160 689 Pty Ltd v. Commissioner of Taxation. The Addendum applies on and from 1 July 2014. |
GSTR 2003/15 | Goods and services tax: importation of goods into Australia | The Addendum amends Goods and Services Tax Ruling GSTR 2003/15 to reflect amendments made to the A New Tax System (Goods and Services Tax) Act 1999 by the Treasury Laws Amendment (GST Low Value Goods) Act 2017 in relation to the importation of low value goods that are made on or after 1 July 2018. The Addendum applies on and from 1 July 2018. |
CR 2016/37 | Fringe benefits tax: clients of Plantcom Pty Ltd who use the Fleetgate Platform reports for car log book and adometer records | The Addendum amends Class Ruling CR 2016/37 to change the name of the company named in the class ruling from Plantcom Pty Ltd to Euclidic Systems Pty Ltd. The Addendum applies on and from 15 November 2018. |
Overview
The Australian Taxation Office has issued several rulings and addenda to clarify and update the application of tax laws. The rulings address specific schemes and arrangements, ensuring taxpayers understand the tax implications of their actions. For example, Ruling CR 2019/14 deals with the off-market share buy-back of Monash Absolute Investment Company Limited, while Ruling CR 2019/15 concerns the restructure of Ardent Leisure Group. Additionally, Ruling CR 2019/16 outlines the fringe benefits tax consequences for employers using the Maxxia Wallet or Remserv Wallet. These rulings apply to entities involved in the specified schemes within the term of the ruling. Addenda have also been issued to update existing rulings in light of recent legal decisions and legislative amendments, such as TR 2013/3D, which was amended to reflect the decision in GHP 104 160 689 Pty Ltd v. Commissioner of Taxation, and GSTR 2003/15D, which was updated to align with changes to the importation of low value goods. These rulings and addenda are designed to provide clarity and guidance to taxpayers on their tax obligations.
Scope and Application
The Commissioner of Taxation has issued a series of rulings and addenda that provide clarification on various aspects of income tax and fringe benefits tax, with specific applications to certain entities and transactions. CR 2019/14 and CR 2019/15 address the tax implications of specific corporate restructurings for specified entities involved in the schemes. Similarly, CR 2019/16 outlines the fringe benefits tax consequences for employers using the Maxxia Wallet or Remserv Wallet, applicable from 1 April 2018 to 31 March 2024. The addenda to TR 2013/3, GSTR 2003/15, and CR 2016/37 amend earlier rulings to reflect changes in the law or to correct minor errors, such as updating company names or clarifying interpretations post-judicial decisions. These rulings are binding on the Australian Taxation Office and the entities specified within them, ensuring that taxpayers understand the tax obligations in relation to their particular circumstances.
Key Provisions
The key operative sections of the Rulings provided are those that outline the Commissioner’s position on specific tax matters. For example, Ruling CR 2019/14 (paragraph 1) pertains to the off-market share buy-back of Monash Absolute Investment Company Limited. It sets out the Commissioner’s position on this transaction, which applies to all entities that participated in the scheme during the term of the Ruling. Similarly, Ruling CR 2019/15 (paragraph 2) addresses the restructure of Ardent Leisure Group, while Ruling CR 2019/16 (paragraph 3) outlines the fringe benefits tax consequences for employers who use the Maxxia Wallet or Remserv Wallet. These Rulings provide clarity on the tax implications of specific financial transactions and arrangements, ensuring that entities comply with the relevant tax laws.
The obligations and requirements imposed by these Rulings are primarily focused on ensuring that the entities involved in the specified transactions adhere to the Commissioner’s interpretation of the law. For instance, entities participating in the Monash Absolute Investment Company Limited share buy-back must comply with the tax implications as outlined in Ruling CR 2019/14. Likewise, those involved in the Ardent Leisure Group restructure must follow the guidelines in Ruling CR 2019/15, and employers using the Maxxia Wallet or Remserv Wallet must adhere to the fringe benefits tax provisions in Ruling CR 2019/16. These Rulings provide a clear framework for entities to understand their tax obligations in relation to these specific transactions.
In terms of consequences for breach, it is important to note that while the Rulings themselves do not explicitly outline penalties for non-compliance, failure to adhere to the Commissioner’s position could result in various civil or criminal consequences under the broader tax laws. For example, if an entity does not comply with the provisions outlined in Ruling CR 2019/16 regarding fringe benefits tax, they could face penalties under the Fringe Benefits Tax Assessment Act 1986. These penalties could include fines, interest on unpaid tax, and in severe cases, criminal prosecution. The specific penalties and consequences would depend on the nature and extent of the non-compliance, as well as the applicable tax legislation.