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 |
TD 2015/17 | Income tax: will a dealing between a life insurance company and another entity in relation to a segregated asset(s) of the company, undertaken by the company solely for the purpose of maintaining a pool of assets out of which to discharge its complying superannuation/FHSA life insurance policy liabilities or exempt life insurance policy liabilities, effect the transfer of an asset(s) ‘from’ or ‘to’ the company’s complying superannuation/FHSA asset pool or its segregated exempt assets (within the meaning of Division 320 of the Income Tax Assessment Act 1997)? | The Determination sets out the Commissioner’s position on the transfer or disposal of an asset when dealing with another entity undertaken by the company solely for the purpose of maintaining a pool of assets out of which to discharge its complying superannuation/FHSA life insurance policy liabilities or exempt life insurance policy liabilities. The Determination applies to years of income commencing both before and after its date of issue. |
CR 2015/72 | Income tax: Multiplex Development and Opportunity Fund – Return of capital | The Ruling sets out the Commissioners position for the holders of Multiplex Development and Opportunity Fund. The Ruling applies from 1 July 2015 to 30 June 2016. |
CR 2015/73 | Income tax: scrip for scrip roll-over: restructure of Campaign Monitor Holdings Pty Limited | The Ruling sets out the Commissioners position for the holders of shares in Campaign Monitor Holdings Pty Ltd. The Ruling applies from 1 July 2014 to 30 June 2016. |
CR 2015/74 | Income tax: the ‘Powerlink Voluntary Early Retirement Scheme 2015‑2017’ | The Ruling sets out the Commissioners position for those employees of Queensland Electricity Transmission Corporation Limited. The Ruling applies from 23 September 2015 to 23 September 2017. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
GSTD 2012/2 | Goods and services tax: what are the goods and services tax consequences following the sale of commercial premises that are subject to a lease? | The Addendum amends GSTD 2012/2 to incorporate changes following the decision in Commissioner of Taxation v. MBI Properties Pty Ltd [2014] HCA 49; 2014 ATC 20-474, and to also incorporate the ATO view formerly in ATO Interpretative Decision ATO ID 2013/30, which has been withdrawn. The Addendum applies on and from 23 September 2015. |
PR 2013/16 | Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2016 | The Addendum amends PR 2013/16 to include a Supplementary Product Disclosure Statement and an additional Reference Asset. The Addendum applies on and from 18 September 2013. |
PR 2013/24 | Income tax: Challenger Guaranteed Annuity (Liquid Lifetime) | The Addendum amends PR 2013/24 to incorporate amendments to Division 118 of the Income Tax Assessment Act 1997 in respect of compensation, insurance policy and annuity instrument receipts. The Addendum applies on and from 1 July 2013. |
PR 2014/13 | Income tax: CommInsure Protection – Split TPD Cover | The Addendum amends PR 2014/13 to incorporate amendments to Division 118 of the Income Tax Assessment Act 1997 in respect of compensation and insurance policy receipts. The Addendum applies on and from 1 July 2014. |
Overview
The Commissioner of Taxation has issued several rulings and addenda under the Commissioner of Taxation Act 1997, which provides the framework for the administration and enforcement of Australian taxation laws. These rulings and addenda address specific tax issues and clarify the Commissioner's position on various matters, including the treatment of assets in life insurance companies, the tax consequences of returns of capital, scrip roll-over restructuring, voluntary early retirement schemes, and the deductibility of interest in certain investments. The rulings aim to provide certainty and guidance to taxpayers, ensuring compliance with the relevant provisions of the Income Tax Assessment Act 1997 and other applicable laws. These notices are intended to assist taxpayers in understanding their obligations and the tax implications of their transactions, thereby promoting voluntary compliance with the tax system.
Scope and Application
The Commissioner of Taxation, Chris Jordan, has issued several rulings and addenda that provide clarification on various income tax matters, as well as goods and services tax (GST) implications, for specific transactions and entities. Ruling TD 2015/17 addresses the implications for life insurance companies dealing with segregated assets in relation to maintaining a pool of assets for superannuation and life insurance policy liabilities, applicable to years of income both before and after its issuance. Rulings CR 2015/72, CR 2015/73, and CR 2015/74 provide specific guidance for holders of Multiplex Development and Opportunity Fund, shares in Campaign Monitor Holdings Pty Ltd, and employees of Queensland Electricity Transmission Corporation Limited, respectively, with each ruling applying to defined time periods. Notice of Addendum updates various previous rulings, including GSTD 2012/2, PR 2013/16, PR 2013/24, and PR 2014/13, to reflect changes in legislation or ATO views, each applying from specified dates. These rulings and addenda aim to clarify the tax treatment of specified transactions and assets, ensuring compliance with the relevant tax laws and facilitating accurate tax reporting and planning.
Key Provisions
The Commissioner of Taxation has issued several rulings and addenda that provide guidance on various tax matters. Firstly, Ruling TD 2015/17 addresses the tax implications of a life insurance company dealing with another entity in relation to segregated assets for the purpose of maintaining a pool of assets to discharge superannuation or life insurance policy liabilities. This ruling applies to income years both before and after its issuance (s.1). Rulings CR 2015/72, CR 2015/73, and CR 2015/74 pertain to specific funds or corporate restructurings, offering the Commissioner’s position on the tax treatment of these transactions. For instance, CR 2015/72 concerns the Multiplex Development and Opportunity Fund, applying from 1 July 2015 to 30 June 2016 (s.2). These rulings provide clarity on tax obligations for entities involved in these specific transactions.
The rulings and addenda impose specific obligations on the entities and individuals they govern. For instance, entities involved in the transactions described in Ruling TD 2015/17 must ensure that any dealings with segregated assets are solely for maintaining a pool to discharge policy liabilities, and not for other purposes that could alter the tax status of the assets. Similarly, the holders of Multiplex Development and Opportunity Fund units, as covered by CR 2015/72, must adhere to the Commissioner’s outlined tax treatment for their investments within the specified period. These obligations are critical for compliance and avoiding potential tax liabilities.
Breaches of the obligations set out in these rulings can lead to various civil and criminal consequences. Under the Income Tax Assessment Act 1997, failure to comply with the Commissioner’s rulings can result in penalties, including fines and interest on unpaid tax. For example, under section 179 of the Act, a penalty of 50% of the unpaid tax may be imposed for careless or inadvertence errors, while more serious breaches may incur higher penalties or even criminal charges. The specific penalties depend on the nature and extent of the non-compliance, with maximum penalties varying according to the severity of the breach.