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 2014/70 | Income tax: Westfield Group Plans - Westfield Corporation employees | The Ruling sets out the Commissioner’s position for individuals who: - are residents of Australia as defined in subsection 6(1) of the Income Tax Assessment Act 1936, including by virtue of the operation of any Australian Tax Treaties between Australia and any other country on 30 June 2014 (Implementation Date)
- are not temporary residents as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) on the Implementation Date
- hold one or more of Performance Rights, Indeterminate Performance Rights, an Award under the Executive Deferred Award Plan (EDAP) or an Award under the Partnership Incentive Plans (PIPs) (the EDAP and PIPs together are the Cash Awards) on the Implementation Date (collectively, WDC Awards)
- were employees of Westfield Limited (WL)(now Scentre Limited), a wholly owned subsidiary of Westfield Holdings Limited (WHL)(now Scentre Group Limited), at the time the WDC Awards were granted
- are employees of Westfield Corporation Limited (WCL) or a 100% subsidiary of WCL following the implementation of the Proposal
- have not qualified for a payout in relation to their Cash Awards, and
- are not subject to the taxation of financial arrangements rules in Division 230 of the ITAA 1997. (Note: Division 230 will generally not apply to individuals unless they made an election for it to apply to them.)
The Ruling applies from 1 July 2013 to 30 June 2020. |
CR 2014/71 | Income tax: Westfield Group Plans – Scentre Group employees | The Ruling sets out the Commissioner’s position for individuals who: - are residents of Australia as defined in subsection 6(1) of the Income Tax Assessment Act 1936, including by virtue of the operation of any Australian Tax Treaties between Australia and any other country on 30 June 2014 (Implementation Date)
- are not temporary residents as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) on the Implementation Date
- hold one or more of Performance Rights, Indeterminate Performance Rights, an Award under the Executive Deferred Award Plan (EDAP) or an Award under the Partnership Incentive Plans (PIPs) (the EDAP and PIPs together are the Cash Awards) on the Implementation Date (collectively, WDC Awards)
- were employees of Westfield Limited (WL)(now Scentre Limited), a wholly owned subsidiary of Westfield Holdings Limited (WHL)(now Scentre Group Limited), at the time the WDC Awards were granted
- continue to be employees of WL following implementation of the Proposal
- have not qualified for a payout in relation to their Cash Awards, and
- are not subject to the taxation of financial arrangements rules in Division 230 of the ITAA 1997. (Note: Division 230 will generally not apply to individuals unless they made an election for it to apply to them.)
This Ruling applies from 1 July 2013 to 30 June 2020. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
GSTR 2012/2 | Goods and services tax: financial assistance payments | The Addendum amends Goods and Services Tax Ruling GSTR 20012/2 to take account of the Full Federal Court decision in AP Group Limited v. Commissioner of Taxation [2013] FCAFC 105, which considered the GST treatment of payments made by motor vehicle manufacturers or distributors to the taxpayer (motor vehicle dealerships). The Addendum also amends GSTR 2012/2 to update the case references section. This Addendum amends GSTR 2012/2 to explain the Commissioner's view of the law as it applies both before and after the date of issue. |
PR 2006/57 | Income tax: 2006 Timbercorp Avocado Project - Early Growers | The Addendum amends Product Ruling PR 2006/57 withdrawal to provide information about the consequence for Growers following the appointment of a replacement Responsible Entity for the 2006 Timbercorp Avocado Project – Early Growers. The Addendum applies on and from 12 October 2009. |
PR 2006/58 | Income tax: 2006 Timbercorp Avocado Project – Post 30 June Growers | The Addendum amends Product Ruling PR 2006/58 withdrawal to provide information about the consequence for Growers following the appointment of a replacement Responsible Entity for the 2006 Timbercorp Avocado Project – Post 30 June Growers. The Addendum applies on and from 12 October 2009. |
Overview
The Commissioner of Taxation has issued a series of rulings and addenda under the Income Tax Assessment Act 1936 (Cth) and the Goods and Services Tax Act 1999 (Cth) to provide clarity and guidance on specific tax issues. These rulings address various situations, such as the tax treatment of Westfield Group Plans for employees of Westfield Corporation Limited and Scentre Group Limited, and update previous rulings in light of new court decisions. The objective of these rulings is to ensure that taxpayers understand their obligations and can comply with the law effectively. The rulings and addenda are issued by the Commissioner of Taxation, Chris Jordan, and are intended to assist taxpayers in navigating complex tax scenarios, thereby promoting compliance and reducing disputes.
Scope and Application
The Commissioner of Taxation has issued several rulings under the relevant tax legislation, including the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997, as well as the Goods and Services Tax Act 1999. Rulings CR 2014/70 and CR 2014/71 pertain to the tax treatment of employees of Westfield Corporation Limited and Scentre Group Limited, respectively, in relation to specific deferred compensation plans. These rulings apply to individuals who meet certain criteria, such as being Australian residents and holding particular awards from the Westfield Group, and cover the period from 1 July 2013 to 30 June 2020. The rulings clarify the tax implications for these employees under the existing tax framework. GSTR 2012/2 Addendum revises the Commissioner's view on the GST treatment of payments made by motor vehicle manufacturers or distributors to dealerships, incorporating the Full Federal Court decision in AP Group Limited v. Commissioner of Taxation [2013] FCAFC 105. This ruling explains the law as it applies both before and after the date of issue, thereby updating the case references section. Finally, the addenda to PR 2006/57 and PR 2006/58 address the consequences for growers involved in the 2006 Timbercorp Avocado Project following the appointment of a replacement Responsible Entity, applicable from 12 October 2009. These rulings are designed to provide clarity and guidance on the specified tax matters within their designated timeframes and scope.
Key Provisions
The main operative sections of the Commissioner of Taxation Rulings (CR 2014/70, CR 2014/71, GSTR 2012/2, PR 2006/57, and PR 2006/58) provide detailed guidance on various tax matters. CR 2014/70 and CR 2014/71 set out the Commissioner's position on the tax treatment of Westfield Corporation employees and Scentre Group employees holding certain performance rights or awards as of 30 June 2014. GSTR 2012/2 details the GST treatment of financial assistance payments made by motor vehicle manufacturers or distributors to dealerships, taking into account the Full Federal Court decision in AP Group Limited v. Commissioner of Taxation [2013] FCAFC 105. PR 2006/57 and PR 2006/58 address the consequences for growers in the 2006 Timbercorp Avocado Project following the appointment of a replacement Responsible Entity.
These Rulings impose specific obligations on the taxpayers they govern. For CR 2014/70 and CR 2014/71, the obligations include ensuring compliance with the tax treatment of the specified Westfield Group plans for the relevant employees. GSTR 2012/2 requires taxpayers to correctly classify and account for financial assistance payments in their GST returns. PR 2006/57 and PR 2006/58 require growers in the specified avocado projects to understand the tax implications following the appointment of a new Responsible Entity.
The Rulings also establish the potential consequences for non-compliance. While the specific penalties for breach are not detailed in the provided text, breaches of Australian tax law generally carry civil or criminal penalties. Civil penalties can include fines up to the maximum amounts prescribed by law, while criminal penalties can result in imprisonment, depending on the severity of the offence and the discretion of the court. The penalties can vary widely based on the nature and extent of the non-compliance, and may also include additional interest and penalties on any unpaid taxes.