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 |
CR 2015/24 | Income tax: Calliden Group Limited Scheme of Arrangement and Special Dividend | The Ruling sets out the Commissioner’s position for ordinary shareholders of Calliden Group Limited. The Ruling applies from 1 July 2014 to 30 June 2015. |
CR 2015/25 | Income tax: Calliden Group Limited Scheme of Arrangement - Special Dividend - Participants of the Calliden Group Limited Incentive Rights Plan | The Ruling sets out the Commissioner’s position for all employees of Calliden or its wholly owned subsidiaries. The Ruling applies from 1 July 2014 to 30 June 2015. |
PR 2015/3 | Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2018 – Flexi Professional | The Ruling sets out the Commissioner’s position on investment in the Macquarie Flexi 100 Trust using a limited recourse loan made by Macquarie Specialist Investments Lending Limited and the grant of put options over the investment by the Loan Provider. The Ruling applies prospectively from 1 April 2015, the date it is published. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
MT 2008/1 | Penalty relating to statements: meaning of reasonable care, recklessness and intentional disregard | The Addendum amends Miscellaneous Taxation Ruling MT 2008/01 to take into account: - the withdrawal of Law Administration Practice Statement PS LA 2006/2 and its replacement with Law Administration Practice Statements PS LA 2012/4 and 2012/5
- that the administrative penalty contained in Division 284 of Schedule 1 to the Taxation Administration Act 1953 applies in relation to Petroleum Resource Rent Tax matters, and
- the repeal of the Minerals Resource Rent Tax (MRRT).
The Addendum applies on and from 1 October 2014. |
MT 2008/2 | Shortfall penalties: administrative penalty for taking a position that is not reasonably arguable | The Addendum amends Miscellaneous Taxation Ruling MT 2008/02 to take into account: - the withdrawal of Law Administration Practice Statement PS LA 2006/2 and its replacement with Law Administration Practice Statements PS LA 2012/4 and 2012/5, and
- the repeal of the Minerals Resource Rent Tax (MRRT).
The Addendum applies on and from 1 October 2014. |
MT 2011/1 | Miscellaneous taxes: application of penalties and interest charges to the Commonwealth, States, Northern Territory and Australian Capital Territory | The Addendum amends Miscellaneous Taxation Ruling MT 2011/1 to take into account: - the withdrawal of Law Administration Practice Statement PS LA 2006/2 and its replacement with Law Administration Practice Statements PS LA 2012/4 and 2012/5
- that the administrative penalty contained in Division 284 of Schedule 1 to the Taxation Administration Act 1953 applies in relation to Petroleum Resource Rent Tax matters, and
- the repeal of the Minerals Resource Rent Tax (MRRT).
The Addendum applies on and from 1 October 2014. |
MT 2012/3 | Administrative penalties: voluntary disclosures | The Addendum amends Miscellaneous Taxation Ruling MT 2012/3 to take into account: - the withdrawal of Law Administration Practice Statement PS LA 2006/2 and its replacement with Law Administration Practice Statements PS LA 2012/4 and 2012/5.
- the repeal of the Minerals Resource Rent Tax (MRRT).
The Addendum applies on and from 1 October 2014. |
Overview
The Australian Taxation Office (ATO) has issued a Gazette Notice C2015G00467 that includes a series of rulings and addenda to existing rulings, which are relevant to taxpayers under various tax arrangements and administrative penalties. This Gazette Notice was introduced to ensure clarity and consistency in the application of tax laws and administrative penalties, particularly in the context of changes in related legislative instruments and the repeal of the Minerals Resource Rent Tax (MRRT). The rulings cover specific tax treatments for entities such as Calliden Group Limited, investment trusts like Macquarie Flexi 100 Trust, and the deductibility of interest for certain investment arrangements. Additionally, the addenda to various Miscellaneous Taxation Rulings address the withdrawal of older practice statements and the incorporation of new administrative penalties applicable to Petroleum Resource Rent Tax matters, reflecting the evolving legislative framework and administrative practices within the Taxation Administration Act 1953.
Scope and Application
The Commissioner of Taxation has issued several rulings and addenda that provide clarification on specific tax matters. These rulings apply to various entities and individuals within the Australian tax system, including ordinary shareholders and employees of Calliden Group Limited, and taxpayers with investments in the Macquarie Flexi 100 Trust. The rulings cover a range of topics, such as the tax implications of a scheme of arrangement and special dividend, the deductibility of interest in relation to certain investments, and the application of penalties for late or incorrect statements. The rulings and addenda apply to the Commonwealth, states, territories, and Australian Capital Territory, with specific dates of application noted for each. Notably, some rulings extend their application through subordinate instruments. The addenda also address changes in law administration practice statements and the repeal of certain taxes, such as the Minerals Resource Rent Tax.
Key Provisions
The Gazetted Rulings and Addendums provided by the Commissioner of Taxation outline specific tax positions and amendments to existing rulings. CR 2015/24 and CR 2015/25 detail the Commissioner's position on the tax treatment of ordinary shareholders and employees involved in the Calliden Group Limited Scheme of Arrangement and Special Dividend, respectively. These Rulings apply from 1 July 2014 to 30 June 2015. PR 2015/3 explains the tax implications of investments in the Macquarie Flexi 100 Trust using a limited recourse loan and the grant of put options, effective from 1 April 2015.
The obligations imposed by these Rulings require taxpayers to adhere to the specified tax treatments for the mentioned transactions and periods. Taxpayers must ensure compliance with these Rulings by correctly reporting their income and deductions in line with the guidance provided. For instance, ordinary shareholders and employees must correctly categorise their income from the Calliden Group Limited Scheme, while investors in the Macquarie Flexi 100 Trust must account for their investments according to the Ruling's stipulations.
Any failure to comply with these Rulings may lead to inaccurate tax reporting, which can result in penalties and interest charges. Under the Taxation Administration Act 1953, penalties may be imposed for non-compliance, including failure to lodge a statement or provide information. The maximum penalties for these offences vary, with potential fines and imprisonment for serious or repeated breaches. The Addendums to MT 2008/1, MT 2008/2, MT 2011/1, and MT 2012/3 provide further clarification on the application of penalties and interest charges, including the criteria for determining reasonable care, recklessness, and intentional disregard. These changes, effective from 1 October 2014, ensure that penalties are applied consistently and fairly in relation to Petroleum Resource Rent Tax matters and voluntary disclosures.