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 ADDENDA |
Ruling Number | Subject | Brief Description |
TR 2016/1 | Income tax: effective life of depreciating assets (applicable from 1 July 2016) | The Addendum amends Taxation Ruling TR 2016/1 to insert missing entries and remove the incorrect use of an asterisk. The Addendum applies from 1 July 2016. |
NOTICE OF ERRATA |
Ruling Number | Subject | Brief Description |
CR 2007/15 | Fringe benefits tax: employer clients of Community Sector Banking Pty Ltd who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 that make use of a CSB Salary Benefit Card Account facility | The Erratum corrects minor errors within Class Ruling CR 2007/15. The Erratum applies on and from 8 June 2016. |
CR 2007/88 | Fringe benefits tax: employer clients of Shakespeare & Associates who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 whose employees make use of a Visa Salary Packaging Card (Meal Entertainment) facility | The Erratum corrects minor errors within Class Ruling CR 2007/88. The Erratum applies on and from 24 August 2016. |
Overview
The Commissioner of Taxation has issued an Addendum and Errata to certain Taxation Rulings to correct errors and omissions that may impact taxpayers' compliance and understanding of the tax law. The Addendum to Taxation Ruling TR 2016/1, which addresses the effective life of depreciating assets, was introduced to rectify missing entries and the incorrect use of an asterisk in the original ruling. This Addendum applies from 1 July 2016, and aims to ensure that taxpayers have accurate information to correctly calculate their depreciation deductions. Additionally, Errata have been issued for Class Rulings CR 2007/15 and CR 2007/88 concerning fringe benefits tax for employer clients of Community Sector Banking Pty Ltd and Shakespeare & Associates, respectively. These Errata, which correct minor errors within the rulings, apply from 8 June 2016 and 24 August 2016 respectively. The purpose of these corrections is to ensure that taxpayers relying on these rulings can do so with confidence that the information is accurate and up-to-date.
Scope and Application
The Commissioner of Taxation has issued a Notice of Addendum and Notices of Errata for various Taxation Rulings, providing clarity and corrections to existing rulings. The Addendum TR 2016/1 relates to the income tax ruling concerning the effective life of depreciating assets, effective from 1 July 2016, and serves to correct missing entries and rectify the incorrect use of an asterisk in the original ruling. On the other hand, the Notices of Errata CR 2007/15 and CR 2007/88 pertain to fringe benefits tax rulings for specific employer clients of Community Sector Banking Pty Ltd and Shakespeare & Associates respectively, both subject to section 57A of the Fringe Benefits Tax Assessment Act 1986. The Errata correct minor errors within these Class Rulings, with CR 2007/15 effective from 8 June 2016 and CR 2007/88 from 24 August 2016. These amendments apply to the relevant entities and individuals who are subject to the specified provisions of the Fringe Benefits Tax Assessment Act 1986.
Key Provisions
The Commissioner of Taxation has issued several notices to clarify and correct existing rulings under Australian tax law. TR 2016/1, concerning the effective life of depreciating assets, has been amended by an addendum effective from 1 July 2016. This addendum primarily serves to insert missing entries and correct the incorrect use of an asterisk, ensuring that taxpayers have accurate information to determine the correct depreciation rates for various assets.
The obligations for taxpayers under these amendments are clear: they must adhere to the corrected depreciation schedules provided in TR 2016/1. This involves correctly calculating depreciation deductions for depreciating assets based on the effective life as specified in the ruling. Failure to comply with these schedules can lead to discrepancies in tax filings and potential audits by the Australian Taxation Office (ATO).
Regarding the errata, CR 2007/15 and CR 2007/88 have been corrected to rectify minor errors in the fringe benefits tax provisions for specific employer clients. CR 2007/15 pertains to employer clients of Community Sector Banking Pty Ltd, while CR 2007/88 relates to employer clients of Shakespeare & Associates. Both errata correct inaccuracies that may affect the calculation of fringe benefits tax for employees using salary packaging arrangements. Employers must ensure that they update their records and calculations to reflect these corrections.
In terms of penalties, the ATO may impose fines and interest charges for any underpayment or misreporting of taxes due to errors in depreciation schedules or fringe benefits tax calculations. The maximum penalties can vary depending on the nature and extent of the breach, but they can include substantial fines and additional taxes owed, along with accrued interest. Accurate compliance with these rulings is crucial to avoid these potential consequences.