COMMISSIONER OF TAXATION
The acting Commissioner of Taxation, Geoff Leeper, 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 |
LCTD 2013/1 | Luxury car tax: what is the luxury car tax threshold and the fuel‑efficient car limit for the 2013‑14 financial year? | The Determination sets out the Commissioner’s opinion about how the luxury car tax threshold and the fuel‑efficient tax limit are determined in accordance with Division 25 of the A New Tax System (Luxury Car Tax) Act 1999. The Determination applies to the financial year commencing 1 July 2013. |
CR 2013/30 | Income tax: demerger of FIIG Securities Limited by Driven Holdings Pty Ltd | The Ruling sets out the Commissioner’s opinion for shareholders of Driven Holdings Pty Ltd. The Ruling applies from 1 July 2012 to 30 June 2013. |
CR 2013/31 | Income tax: early retirement scheme – Coca-Cola Amatil (Aust) Pty Ltd | The Ruling sets out the Commissioner’s opinion for employees of Coca-Cola Amatil (Aust) Pty Ltd. The Ruling applies from 22 May 2013 to 31 March 2014. |
PR 2013/12 | Income tax: deductibility of interest incurred under a Commonwealth Bank Protected Loan used to invest in units in an ASX listed cash trust | The Product Ruling sets out the Commissioner’s opinion on the scheme referred to as the Commonwealth Bank Protected Loan used to acquire securities which include units in an Australian Securities Exchange listed cash trust, and offered by the Commonwealth Bank of Australia under the Options and Lending Facility Product Disclosure Statement dated 1 July 2010. The Product Ruling applies prospectively from 1 July 2012. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
WETR 2009/1 | Wine equalisation tax: the operation of the wine equalisation tax system | The Addendum amends Wine Equalisation Tax Ruling WETR 2009/1 to reflect changes to the New Tax System (Goods and Services Tax) Act 1999, A New Tax System (Wine Equalisation Tax) Act 1999, and the Taxation Administration Act 1953 as a result of the Indirect Tax Laws Amendment (Assessment) Act 2012. It applies to payments or refunds that relate to tax periods starting on or after 1 July 2012 or if they do not relate to any tax periods, liabilities or entitlements that arose on or after 1 July 2012. The Addendum also amends Wine Equalisation Tax Ruling WETR 2009/1 to reflect changes in the A New Tax System (Wine Equalisation Tax) Act 1999 as a result of the Customs Tariff Amendment (Schedule 4) Act 2012. Those changes apply to importations that occur on or after 1 March 2013. The Addendum applies on and from 1 July 2012. |
PR 2011/19 | Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2014 – limited recourse borrowings | The Addendum amends Product Ruling PR 2011/19 to incorporate the Supplementary Product Disclosure Statements dated 16 November 2012, 2 May 2013 and 6 May 2013 as scheme documents. The Addendum applies on and from 16 November 2011. |
Overview
The A New Tax System (Luxury Car Tax) Act 1999 was enacted to address the issue of taxing luxury cars in Australia. This Act imposes a luxury car tax on new cars that exceed a specified value, known as the luxury car tax threshold, and on the import of used luxury cars. The policy objective behind this legislation was to discourage the purchase and ownership of luxury vehicles, thereby reducing the environmental impact and promoting more fuel-efficient transportation options. The enactment of this Act was carried out by the Australian Parliament, reflecting a broader policy goal to manage the environmental and economic implications of luxury car ownership. The Act is designed to ensure that the luxury car tax is levied fairly and effectively, aligning with the government's broader tax reform initiatives.
Scope and Application
The Commissioner of Taxation has issued several rulings and an addendum that provide guidance on various tax matters, impacting different taxpayers and entities. The Luxury Car Tax Determination LCTD 2013/1 sets out the Commissioner's opinion on the luxury car tax threshold and the fuel-efficient car limit for the 2013-14 financial year, applying to any person or entity purchasing a luxury car during this period. The income tax ruling CR 2013/30 applies to shareholders of Driven Holdings Pty Ltd regarding the demerger of FIIG Securities Limited and covers the period from 1 July 2012 to 30 June 2013. Similarly, CR 2013/31 provides guidance to employees of Coca-Cola Amatil (Aust) Pty Ltd concerning the early retirement scheme, applicable from 22 May 2013 to 31 March 2014. Product Ruling PR 2013/12 addresses the deductibility of interest incurred under a Commonwealth Bank Protected Loan for investments in units in an ASX listed cash trust, effective from 1 July 2012. The Addendum to Wine Equalisation Tax Ruling WETR 2009/1 modifies the application of the wine equalisation tax system to account for changes in relevant tax laws and customs tariffs, applying from 1 July 2012 onwards. Lastly, the Addendum to Product Ruling PR 2011/19 adjusts the deductibility of interest in relation to investments in the Macquarie Flexi 100 Trust, effective from 16 November 2011.
Key Provisions
The primary operative sections of the Gazette C2013G00778 cover several tax rulings and an addendum. For example, Ruling LCTD 2013/1 (section 1) outlines the luxury car tax threshold and the fuel-efficient car limit for the 2013-14 financial year, as determined by the Commissioner of Taxation in accordance with Division 25 of the A New Tax System (Luxury Car Tax) Act 1999. Similarly, Ruling CR 2013/30 (section 2) addresses the income tax implications for the demerger of FIIG Securities Limited by Driven Holdings Pty Ltd, and Ruling CR 2013/31 (section 3) provides guidance on the early retirement scheme for Coca-Cola Amatil (Aust) Pty Ltd. Additionally, Product Ruling PR 2013/12 (section 4) provides information on the deductibility of interest incurred under a Commonwealth Bank Protected Loan used to invest in units in an ASX listed cash trust. The addendum to Ruling WETR 2009/1 (section 5) updates the wine equalisation tax system to reflect legislative changes. Lastly, the addendum to Product Ruling PR 2011/19 (section 6) incorporates new supplementary product disclosure statements to address investment in units in the Macquarie Flexi 100 Trust.
The Act imposes several obligations on the parties and entities it governs. For example, entities involved in luxury car transactions must determine if their vehicles fall under the luxury car tax threshold as outlined in Ruling LCTD 2013/1. Shareholders and entities involved in the demerger of FIIG Securities Limited by Driven Holdings Pty Ltd must comply with the income tax guidelines provided in Ruling CR 2013/30. Employees participating in the early retirement scheme for Coca-Cola Amatil (Aust) Pty Ltd must adhere to the tax implications as set out in Ruling CR 2013/31. Additionally, entities that use a Commonwealth Bank Protected Loan to invest in units in an ASX listed cash trust must ensure compliance with the deductibility of interest provisions in Product Ruling PR 2013/12. Entities involved in wine equalisation tax must update their records and calculations to reflect the changes in Ruling WETR 2009/1, as amended by the addendum. Finally, those investing in units in the Macquarie Flexi 100 Trust must incorporate the new supplementary product disclosure statements as outlined in the addendum to Product Ruling PR 2011/19.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the Gazette C2013G00778. However, non-compliance with the tax rulings and legislative changes could lead to potential tax liabilities or reassessments by the Australian Taxation Office. The rulings and amendments aim to provide clarity and ensure that taxpayers are aware of their obligations under the relevant Acts. It is crucial for taxpayers to adhere to these guidelines to avoid any potential issues with the ATO. The rulings and amendments are designed to help taxpayers understand and comply with the current tax laws effectively.