Notice of Rulings, Notice of Addenda

Administered by Department of the Treasury

Legislation au C2016G00810 In force Gazette

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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 2016/9	Income tax: value of goods taken from stock for private use for the 2015 16 income year	The Determination sets out the Commissioner’s position for the value of goods taken from stock for private use for the 2015-16 income year. The Determination applies to the 2015-16 income year.
CR 2016/39	Income tax: Service Stream Limited – return of capital and share consolidation	The Ruling sets out the Commissioner’s opinion for ordinary shareholders of Service Stream Limited. The Ruling applies from 1 July 2015 to 30 June 2016.
CR 2016/40	Income tax: Thales Australia Maritime Early Retirement Scheme	The Ruling sets out the Commissioner’s opinion for employees of Thales Australia Limited. The Ruling will apply from 15 June 2016 to 31 October 2016.

NOTICE OF ADDENDA
Ruling Number	Subject	Brief Description
LCG 2015/4	Attribution Managed Investment Trusts: ‘clearly defined rights’	The Addendum amends Law Companion Guideline LCG 2015/4 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/5	Attribution Managed Investment Trusts: choice to treat separate classes as separate AMITs	The Addendum amends Law Companion Guideline LCG 2015/5 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/6	Attribution Managed Investment Trusts: character flow through for AMITs	The Addendum amends Law Companion Guideline LCG 2015/6 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/7	Attribution Managed Investment Trusts: attribution on a ‘fair and reasonable’ basis	The Addendum amends Law Companion Guideline LCG 2015/7 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/8	Attribution Managed Investment Trusts: the rules for working out trust components – allocation of deductions	The Addendum amends Law Companion Guideline LCG 2015/8 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/9	Attribution Managed Investment Trusts: trustee shortfall taxation – section 276-420	The Addendum amends Law Companion Guideline LCG 2015/9 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/10	Attribution Managed Investment Trusts: administrative penalties for recklessness or intentional disregard of the tax law – section 288-115	The Addendum amends Law Companion Guideline LCG 2015/10 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/11	Attribution Managed Investment Trusts: annual cost base adjustments for units in an AMIT and associated transitional rules	The Addendum amends Law Companion Guideline LCG 2015/11 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/12	Attribution Managed Investment Trusts: dividend, interest and royalty withholding	The Addendum amends Law Companion Guideline LCG 2015/12 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/13	Attribution Managed Investment Trusts: withholding in respect of ‘fund payments’	The Addendum amends Law Companion Guideline LCG 2015/13 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/14	Managed Investment Trusts: widely-held tests – wholly-owned entity of an Australian government agency	The Addendum amends Law Companion Guideline LCG 2015/14 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2015/15	Managed Investment Trusts: the non-arm’s length income rule in sections 275-605, 275-610 and 275-615 of the Income Tax Assessment Act 1997	The Addendum amends Law Companion Guideline LCG 2015/15 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
LCG 2016/4	Attribution Managed Investment Trusts: ‘carry forward trust component deficit’	The Addendum amends Law Companion Guideline LCG 2016/4 to state it is a public ruling for the purposes of the Taxation Administration Act 1953. The Addendum applies on and from 5 May 2016.
TR 2001/002	Fringe benefits tax: the operation of the new fringe benefits tax gross-up formula to apply from 1 April 2000.	The Addendum amends Taxation Ruling TR 2001/2 to reflect the following matters: (a) update section references, tables, terms and rates used in this Ruling to those used in the Fringe Benefits Tax Assessment Act 1986 (FBTAA 1986) (b) 2006, 2014 and 2016 amendments to the fringe benefits tax rate of tax and consequential adjustments to the Type 1 and Type 2 gross-up rates (including the new Table 1 and 2) (c) 2012 amendments in relation to valuation of in-house fringe benefits and in relation to the regulation of charities (d) 2015 amendments to the fringe benefits tax exemption caps and rebate caps (including the new Table 3) (e) 2016 amendments in relation to salary packaged entertainment benefits (including the new Table 3) (f) removal of some examples about car fringe benefits – transitional valuation issues upon the introduction of the A New Tax System (Goods and Services Tax) Act 1999. The Addendum applies on and from 15 June 2016.

Overview

The Commissioner of Taxation, Chris Jordan, has issued several rulings and addenda under the Taxation Administration Act 1953 to provide clarification on various tax matters. These include rulings on the value of goods taken from stock for private use for the 2015-16 income year, the return of capital and share consolidation for Service Stream Limited, and the Thales Australia Maritime Early Retirement Scheme. These rulings offer taxpayers guidance on specific tax issues, ensuring consistency in application and interpretation of the tax law. Furthermore, amendments to several Law Companion Guidelines (LCG) and a Taxation Ruling (TR) have been made to clarify various aspects of attribution managed investment trusts, managed investment trusts, and fringe benefits tax. These amendments aim to provide clear and comprehensive guidance to taxpayers and tax practitioners on complex tax issues, thereby facilitating compliance and reducing ambiguity in tax administration.

Scope and Application

The legislation C2016G00810, gazetted by the Commissioner of Taxation, Chris Jordan, encompasses a series of rulings and addenda that outline specific positions and guidelines for taxpayers in relation to various aspects of income tax and fringe benefits tax for the 2015-16 income year and beyond. These rulings apply to individuals and entities engaged in particular transactions or industries, such as shareholders of Service Stream Limited, employees of Thales Australia Limited, and those involved in the operations of Attribution Managed Investment Trusts and Managed Investment Trusts. Geographically, the rulings extend across the Commonwealth of Australia, and they are applicable to transactions occurring within the specified timeframes. Notably, these rulings do not specify exclusions or thresholds but provide detailed guidance on complex tax matters, which may be subject to further interpretation or clarification through subordinate instruments or future rulings. The rulings and addenda are designed to provide clarity and certainty to taxpayers by setting out the Commissioner's official position on various tax issues, thereby aiding compliance with the relevant tax laws.

Key Provisions

The Commissioner of Taxation has issued several rulings and addenda under the Taxation Administration Act 1953, which are aimed at providing clarity and guidance on various tax-related matters. For the 2015-16 income year, TD 2016/9 outlines the Commissioner's position on the value of goods taken from stock for private use. This ruling is specifically targeted at the valuation of such goods and provides a clear framework for taxpayers to follow. CR 2016/39 addresses the tax implications for ordinary shareholders of Service Stream Limited, offering guidance on tax treatment related to the return of capital and share consolidation. Similarly, CR 2016/40 provides the Commissioner's opinion for employees of Thales Australia Limited regarding the Thales Australia Maritime Early Retirement Scheme. These rulings impose specific obligations on the entities and individuals they govern. For instance, ordinary shareholders of Service Stream Limited must ensure they adhere to the outlined tax treatments for returns of capital and share consolidation, as detailed in CR 2016/39. Employees participating in the Thales Australia Maritime Early Retirement Scheme must also comply with the tax implications as specified in CR 2016/40. Furthermore, TD 2016/9 requires businesses to correctly value goods taken from stock for private use, ensuring accurate reporting in their tax assessments. Failure to comply with these rulings can result in various penalties and consequences. Under the Taxation Administration Act 1953, penalties may include administrative penalties for recklessness or intentional disregard of the tax law, as outlined in LCG 2015/10. The maximum penalties can vary but often include fines and, in severe cases, prosecution. Additionally, inaccuracies or non-compliance in fringe benefits tax as outlined in the Addendum to TR 2001/2 can lead to further adjustments and potential audits by the Australian Taxation Office. Taxpayers must ensure they are aware of and comply with these provisions to avoid adverse tax consequences.

Area of Law: Taxation Law
Instrument: Gazette Notice
Concepts: Definitions & Interpretation; Offence Provisions; Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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