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 2014/2 | Income tax: value of goods taken from stock for private use for the 2013-14 income year | The Determination provides an update of amounts that the Commissioner will accept as estimates of the value of goods taken from trading stock for private use by taxpayers in named industries. The Determination applies to the 2013‑14 income year. |
CR 2014/28 | Income tax: GDI Property Group – creating a new stapled security | The Ruling sets out the Commissioner’s opinion for the holders of units in the GDI No. 35 Perth Prime CBD Office Trust, GDI Premium Office Trust, or GDI No. 34 Sydney CBD Office Trust. The Ruling applies from 1 July 2013 to 30 June 2014. |
CR 2014/29 | Income tax: Government funded payments made under the Breadwinners’ Program | The Ruling sets out the Commissioner’s opinion about full-time students of the University of Sydney who are recipients of Government funded payments under the Breadwinners’ Program. The Ruling applies from 1 July 2012. |
CR 2014/30 | Income tax: Macmahon Holdings Limited 2009 and 2013 Executive Equity Plans | The Ruling sets out the Commissioner’s opinion about employees of Macmahon Holdings Limited or subsidiaries in the Macmahon Group of companies. The Ruling applies from 1 July 2009. |
CR 2014/31 | Income tax: return of share capital: Iron Mountain Mining Limited | The Ruling sets out the Commissioner’s opinion about shareholders of Iron Mountain Mining Limited. The Ruling applies from 23 January 2014 to 30 June 2014. |
CR 2014/32 | Income tax: James Cook University 2014 early retirement scheme | The Ruling sets out the Commissioner’s opinion about all employees of the James Cook University. The Ruling applies from 19 March 2014 to 31 December 2014. |
CR 2014/33 | Income tax: Melbourne Market Authority early retirement scheme | The Ruling sets out the Commissioner’s opinion about all employees of the Melbourne Market Authority. The Ruling applies from 19 March 2014 to 31 March 2015. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
GSTR 2001/8 | Goods and services tax: apportioning the consideration for a supply that includes taxable and non‑taxable parts | The Addendum amends Goods and Services Tax Ruling GSTR 2001/8 to: - reflect the withdrawal and replacement of Goods and Services Tax Ruling GSTR 2000/20 Goods and services tax: commercial residential premises;
- reflect the following changes to the A New Tax System (Goods and Services Tax) Act 1999:
- the substitution of the term ‘community care’ with the term ‘home care’ in section 38‑30 by the Aged Care (Living Longer Living Better) Act 2013, effective from 1 August 2013, and - the insertion of section 38‑38 by the Tax Laws Amendment (2013 Measures No. 2) Act 2013, which applies to supplies made on or after 1 July 2013. The Addendum applies both before and after its date of issue. |
CR 2013/40 | Income tax: early retirement scheme for Barwon Region Water Corporation | The Addendum amends Class Ruling CR 2013/40 to expand the class of eligible employees within additional workgroups specified to express an interest in the early retirement scheme. The Addendum applies on and from 12 June 2013. |
WETR 2006/1 | Wine equalisation tax: the operation of the producer rebate for producers of wine in New Zealand | The Addendum amends Wine Equalisation Tax Ruling WETR 2006/1 to explain how amendments made to the producer rebate provisions of the A New Tax System (Wine Equalisation Tax) Act 1999 that came into effect on 10 December 2012, apply to producers of wine in New Zealand. The Addendum also amends Wine Equalisation Tax Ruling WETR 2006/1 to reflect changes to the 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. These changes apply to producer rebate entitlements arising for producers of wine in New Zealand on or after 1 July 2012. The Addendum applies on and from 10 December 2012. |
WETR 2009/2 | Wine equalisation tax: operation of the producer rebate for other than New Zealand participants | The Addendum amends Wine Equalisation Tax Ruling WETR 2009/2 to: - explain amendments made to the producer rebate provisions of the A New Tax System (Wine Equalisation Tax) Act 1999, that came into effect on 10 December 2012,
- reflect changes to the A 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, which introduced a self-assessment regime for indirect taxes. 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, and
- clarify the Commissioner’s views on the consequences of an entity claiming a producer rebate to which it is not entitled or which exceeds the maximum entitlement for the financial year.
The Addendum applies on and from 10 December 2012. |
Overview
The Commissioner of Taxation has issued several rulings under the authority of the Australian Taxation Office to clarify and provide guidance on specific income tax issues for the years 2013 to 2014. These rulings cover various scenarios, including the value of goods taken from stock for private use, the creation of a new stapled security, and government funded payments under the Breadwinners' Program. Each ruling specifies the particular group of taxpayers it applies to and the period during which it is effective. The aim of these rulings is to provide certainty to taxpayers and ensure compliance with tax laws by outlining the Commissioner's interpretation of relevant tax provisions. These rulings are a part of the ongoing efforts to administer and enforce the tax laws effectively, ensuring that taxpayers understand their obligations and can plan accordingly. The rulings were issued under the authority of the Commissioner of Taxation and are intended to provide clarity and guidance on specific income tax issues.
Scope and Application
The Commissioner of Taxation has issued a series of rulings and addenda pertaining to various aspects of income tax and goods and services tax, applying to specific industries, entities, and individuals. For instance, TD 2014/2 provides guidance on the value of goods taken from stock for private use in certain industries for the 2013-14 income year, while CR 2014/28 to CR 2014/33 offer rulings on the tax implications of various schemes or payments within specific corporate entities or employee groups. These rulings specify the application periods for each ruling, such as from 1 July 2012 to 31 December 2014 for the James Cook University 2014 early retirement scheme, or from 1 July 2013 to 30 June 2014 for the GDI Property Group. Additionally, GSTR 2001/8 provides guidance on apportioning consideration for supplies that include both taxable and non-taxable parts, and its addendum addresses specific legislative changes. Similarly, WETR 2006/1 and WETR 2009/2 provide clarification on the operation of the producer rebate for wine producers in New Zealand and other participants, respectively, with their addenda reflecting legislative amendments effective from 10 December 2012 and 1 July 2012. These rulings and addenda are applicable within the Commonwealth of Australia, subject to specific industry, entity, or individual criteria, and may be extended or modified through subordinate instruments.
Key Provisions
The key provisions of the Commissioner of Taxation's Notice of Rulings and Addendums include updates and clarifications on income tax and goods and services tax (GST) related matters, as well as the wine equalisation tax. The notices and addendums, identified by Ruling Numbers and effective dates, provide specific guidance on various tax issues for particular sectors and entities. For instance, TD 2014/2 (paragraph 1) details the acceptable estimates for the value of goods taken from stock for private use in certain industries for the 2013-14 income year. Similarly, GSTR 2001/8 (paragraph 4) outlines the method for apportioning consideration for supplies that include both taxable and non-taxable components, reflecting recent legislative changes.
These rulings and addendums impose specific obligations on the parties or entities they govern. For example, entities such as GDI Property Group, University of Sydney students, and employees of companies like Macmahon Holdings Limited and James Cook University are required to adhere to the specific income tax rulings outlined in CR 2014/28 to CR 2014/32. These rulings provide detailed guidance on tax treatments applicable to these entities, ensuring compliance with the relevant tax provisions.
Breaching the obligations set out in these rulings and addendums can lead to various civil and criminal consequences. While the document does not specify maximum penalties for each ruling, general tax legislation provides for penalties such as fines, interest on unpaid taxes, and potential prosecution for serious breaches. The Commissioner of Taxation has the authority to enforce these penalties, and taxpayers found to be in breach of their obligations may face significant financial and legal repercussions.