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 2014/4 | Income tax: Clough Limited Scheme of Arrangement and Special Dividend | The Ruling sets out the Commissioner’s opinion for all ordinary shareholders of Clough Limited. The Ruling applies from 1 July 2013 to 30 June 2014. |
CR 2014/5 | Income tax: format of mobile phone invoice as evidence for donations to United Nations Children’s Fund via SMS | The Ruling sets out the Commissioner’s opinion for mobile phone subscribers who make a tax deductible gift to the United Nations Children’s Fund by way of SMS to a designated mobile phone number operated by a mobile phone carrier. The Ruling applies from 1 February 2014 until 30 June 2019. |
PR 2014/1 | Income tax: the tax consequences of entering into a Non‑Entity Joint Venture Agreement with Tremplin Limited relating to participation in the National Rental Affordability Scheme (NRAS) | The Ruling sets out the Commissioner’s opinion in relation to participants of the Tremplin Non‑Entity Joint Venture Agreement. The Ruling applies prospectively from 15 January 2014, the date it is published. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
CR 2012/56 | Income tax: CSR Limited ‑ CSR Employee Share Acquisition Plan ‑ return of capital | The Addendum amends Class Ruling CR 2012/56 to explain the CGT consequences of the return of capital in relation to the time of acquisition of a CSR share for the purposes of the CGT discount. The Addendum applies from 1 July 2010 to 30 June 2019. |
CR 2013/53 | Income tax: Essential Energy – Early Retirement Scheme | The Addendum amends Class Ruling CR 2013/53 to reflect a change in payments to be made to eligible employees covered by the Essential Energy Far West Electricity Enterprise Agreement 2011 who express an interest to retire under the early retirement scheme. The Addendum applies on and from 10 July 2013. |
CR 2013/97 | Income tax: Essential Energy’s Network Business Mix and Match Program | The Addendum amends Class Ruling CR 2013/97 to reflect a change in payments to be made to eligible employees who express an interest to retire under the early retirement scheme. The Addendum applies on and from 11 December 2013. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued several rulings to clarify the application of income tax laws in specific circumstances. The rulings, which are available from the Australian Taxation Office, address particular tax issues affecting various entities and transactions. For example, Ruling CR 2014/4 pertains to the tax treatment of Clough Limited's scheme of arrangement and special dividend, affecting ordinary shareholders from July 1, 2013, to June 30, 2014. Similarly, Ruling CR 2014/5 deals with the tax deductibility of donations made to the United Nations Children’s Fund via SMS, applicable from February 1, 2014, to June 30, 2019. These rulings aim to provide clarity and certainty to taxpayers and the Commissioner of Taxation, ensuring compliance with income tax laws during the specified periods.
Scope and Application
The Commissioner of Taxation has issued a series of rulings and addenda that provide clarity on specific income tax matters for various entities and individuals. CR 2014/4 applies to all ordinary shareholders of Clough Limited, addressing the tax implications of a Scheme of Arrangement and Special Dividend for the financial year starting 1 July 2013 and ending 30 June 2014. CR 2014/5 pertains to mobile phone subscribers making tax-deductible gifts to the United Nations Children’s Fund via SMS, clarifying the format of mobile phone invoices as evidence for these donations, effective from 1 February 2014 until 30 June 2019. PR 2014/1 provides the Commissioner’s opinion on the tax consequences for participants in a Non-Entity Joint Venture Agreement with Tremplin Limited concerning the National Rental Affordability Scheme, applicable from 15 January 2014. The addenda to Class Rulings further refine these rulings, such as CR 2012/56, amended by Addendum CR 2012/56, which clarifies the capital gains tax consequences of the return of capital in relation to the acquisition of CSR shares, applicable from 1 July 2010 to 30 June 2019. Similarly, CR 2013/53, amended by Addendum CR 2013/53, addresses changes in payments to eligible employees of Essential Energy under the early retirement scheme, effective from 10 July 2013, while CR 2013/97, amended by Addendum CR 2013/97, reflects changes in payments to eligible employees under the Network Business Mix and Match Program, effective from 11 December 2013. These rulings and addenda provide essential guidance to the specified entities and individuals regarding their tax obligations.
Key Provisions
The Commissioner of Taxation has issued several rulings and addenda that outline specific tax implications for various business arrangements and individual actions. The main operative sections of these rulings provide clarity and guidance to taxpayers on their obligations and entitlements. For instance, CR 2014/4 (section 1) addresses the income tax consequences for ordinary shareholders of Clough Limited, specifically regarding a scheme of arrangement and special dividend. Similarly, CR 2014/5 (section 2) concerns mobile phone subscribers making tax-deductible donations to UNICEF via SMS, providing the format of the invoice that can be used as evidence. PR 2014/1 (section 3) covers the tax implications for participants in a Non-Entity Joint Venture Agreement with Tremplin Limited under the National Rental Affordability Scheme (NRAS).
These rulings impose certain obligations on the parties involved. For example, ordinary shareholders of Clough Limited must adhere to the Commissioner’s opinion on tax treatment as outlined in CR 2014/4. Mobile phone subscribers making donations to UNICEF via SMS need to ensure their invoices meet the specified format as per CR 2014/5. Participants in the NRAS Non-Entity Joint Venture Agreement must comply with the tax implications detailed in PR 2014/1. Additionally, the addenda to previous rulings, such as CR 2012/56, CR 2013/53, and CR 2013/97, require affected parties to understand and comply with the updated provisions regarding capital returns and early retirement schemes.
Failure to comply with the requirements set out in these rulings and addenda can result in various consequences. While specific offences and penalties are not detailed in the text, it is understood that breaches of tax law can lead to civil or criminal penalties. The severity of these penalties can vary, but they may include fines, interest on unpaid taxes, or even imprisonment for more serious breaches. Taxpayers are encouraged to seek professional advice to ensure compliance and to understand the full implications of these rulings.