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 |
GSTD 2013/2 | Goods and services tax: when are second‑hand goods acquired for the purpose of sale in the ordinary course of business under Division 66 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | The Determination is an expression of the Commissioner’s opinion about second‑hand goods that are acquired for the purpose of sale in the ordinary course of business under Division 66 of the GST Act. The Determination applies both before and after its date of issue. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
GSTR 2001/4 | Goods and services tax: GST consequences of court orders and out‑of‑court settlements | The Addendum amends Goods and Services Tax Ruling GSTR 2001/4 to: - reflect the amendments to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) which were made by Tax and Superannuation Laws Amendment (2012 Measures No. 1) Act 2012. In particular it reflects the amendment that inserted section 9‑17 into the GST Act. Section 9‑17 contains exclusions from the meaning of ‘consideration’ formerly contained in subsection 9‑15(3). Section 9‑17 is now also referred to in the definition of ‘consideration’ as defined by section 195‑1. The amendments apply to payments made on or after 1 July 2012.
- update references to legislation and relevant rulings that have issued since the Ruling was issued.
The Addendum applies on and from 1 July 2012. |
GSTR 2002/3 | Goods and services tax: prizes | The Addendum amends Goods and Services Tax Ruling GSTR 2002/3 to: - reflect the amendments to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) which were made by Tax and Superannuation Laws Amendment (2012 Measures No. 1) Act 2012. In particular it reflects the amendment that inserted section 9‑17 into the GST Act. Section 9‑17 contains exclusions from the meaning of ‘consideration’ formerly contained in subsection 9‑15(3). Section 9‑17 is now also referred to in the definition of ‘consideration’ as defined by section 195‑1. The amendments apply to payments made on or after 1 July 2012.
- update the date of effect section of the Ruling.
The Addendum applies on and from 1 July 2012. |
GSTR 2003/5 | Goods and services tax: Vouchers | This Addendum amends Goods and Services Tax Ruling GSTR 2003/5 to insert the issue date for the addenda which issued on 18 August 2010. The Addendum applies on and from 28 August 2013 |
GSTR 2003/12 | Goods and services tax: when consideration is provided and received for various payment instruments and other methods of payment | The Addendum amends Goods and Services Tax Ruling GSTR 2003/12 to: - reflect the amendments to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) which were made by Tax and Superannuation Laws Amendment (2012 Measures No. 1) Act 2012. In particular it reflects the amendment that inserted section 9‑17 into the GST Act. Section 9‑17 contains exclusions from the meaning of ‘consideration’ formerly contained in subsection 9‑15(3). Section 9‑17 is now also referred to in the definition of ‘consideration’ as defined by section 195‑1. The amendments apply to payments made on or after 1 July 2012.
- update references to legislation and relevant rulings that have issued since the Ruling was issued.
The Addendum applies on and from 1 July 2012. |
GSTR 2004/6 | Goods and services tax: tax law partnerships and co-owners of property | This Addendum amends Goods and Services Tax Ruling GSTR 2004/6 to insert the issue date to the addenda which issued on 31 October 2012. The Addendum applies on and from the 28 August 2013 |
GSTR 2005/3 | Goods and services tax: arrangements of the kind described in Taxpayer Alert TA 2004/9 – exploitation of the second‑hand goods provisions to obtain input tax credits | The Addendum amends Goods and Services Tax Ruling GSTR 2005/3 to withdraw paragraphs 43 to 45F of the Ruling. Those paragraphs explain when second‑hand goods are acquired for the purposes of sale (or exchange) in the ordinary course of business under Division 66 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). The Commissioner’s view on when second‑hand goods are acquired for the purposes of sale under Division 66 of the GST Act has been relocated to a separate Goods and Services Tax Determination, GSTD 2013/2, Goods and services tax: when are second‑hand goods acquired for the purpose of sale (but not manufacture) in the ordinary course of business under Division 66 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?. The Addendum applies on and from the 28 August 2013. |
GSTR 2009/3 | Goods and services tax: cancellation fees | The Addendum amends Goods and Services Tax Ruling GSTR 2009/3 to take account of the High Court decision in Commissioner of Taxation v. Qantas Airways Ltd [2012] HCA 41, which considered the GST treatment of fares received for flights booked but not undertaken by prospective passengers. In that case, the High Court held that the fares were consideration for a taxable supply. The Addendum also amends GSTR 2009/3 to: - make minor amendments to reflect legislative amendments made by Schedule 1 to the Tax Laws Amendment (2010 GST Administration Measures No. 3) Act 2010 in respect of the GST treatment of cross‑border transport. These amendments apply to supplies and taxable importations made on or after 1 July 2010;
- update the date of effect clause; and
- update the references sections of GSTR 2009/3.
The Addendum amends GSTR 2009/3 to explain the Commissioner’s view of the law as it applies both before and after the date of issue. |
MT 2012/2 | Miscellaneous taxes: application of the income tax and GST laws to deferred transfer farm‑out arrangements | The Addendum amends Miscellaneous Taxation Ruling MT 2012/2 to reflect the amendments to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) which were made by Tax and Superannuation Laws Amendment (2012 Measures No. 1) Act 2012. In particular it reflects the amendment that inserted section 9‑17 into the GST Act. Section 9‑17 contains exclusions from the meaning of ‘consideration’ formerly contained in subsection 9‑15(3). Section 9‑17 is now also referred to in the definition of ‘consideration’ as defined by section 195‑1. The amendments apply to payments made on or after 1 July 2012. The Addendum applies on and from 1 July 2012. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
PR 2010/10 | Income tax: Elders Diversified Forestry Project 2010 – Regular Contribution Investors | Withdrawn with effect from 28 August 2013. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued several rulings and addenda to address various aspects of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). These rulings provide clarity on the application of the GST law to different scenarios, including the acquisition of second-hand goods for the purpose of sale, the GST consequences of court orders and out-of-court settlements, and the taxation of prizes, vouchers, tax law partnerships, and co-owners of property. These rulings are designed to ensure that taxpayers understand their obligations under the GST Act and to provide guidance to the Australian Taxation Office in administering the law. The rulings apply both before and after their date of issue, and in some cases, reflect amendments made to the GST Act by subsequent legislation. The rulings can be accessed through the Australian Taxation Office website or from ATO branches.
Scope and Application
The Commissioner of Taxation has issued various rulings and addenda regarding the application of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and other taxation laws. These rulings provide clarification on specific issues such as the GST treatment of second-hand goods, prizes, vouchers, and cancellation fees. They also address the tax implications of court orders, out-of-court settlements, and deferred transfer farm-out arrangements. The rulings apply to both individuals and entities engaged in relevant activities and transactions, and they have a national reach within Australia. Some rulings and addenda have specific effective dates, with most applying from 1 July 2012, following legislative amendments made by the Tax and Superannuation Laws Amendment (2012 Measures No. 1) Act 2012. These rulings are authoritative expressions of the Commissioner's view on certain tax issues and assist taxpayers in understanding their obligations under the law.
Key Provisions
The Commissioner of Taxation has issued several Rulings and Addenda under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and the Miscellaneous Taxation Ruling MT 2012/2. The Rulings primarily address the interpretation and application of the GST law in various contexts, such as the acquisition of second-hand goods for sale (GSTD 2013/2), the GST consequences of court orders and out-of-court settlements (GSTR 2001/4), and the tax treatment of prizes (GSTR 2002/3). These Rulings provide clarity on specific aspects of the GST law and apply retroactively to ensure consistency and fairness in tax administration.
The obligations imposed by these Rulings and Addenda require entities and individuals to understand and comply with the specific provisions outlined. For example, businesses must accurately determine when second-hand goods are acquired for sale under Division 66 of the GST Act, as clarified in GSTD 2013/2. Similarly, they must understand the implications of court orders and settlements on GST liability, as addressed in GSTR 2001/4. The Rulings also mandate that taxpayers keep appropriate records and documentation to substantiate their claims and ensure compliance with the GST law.
Failure to comply with the requirements set out in these Rulings can result in civil and criminal penalties. For instance, if a taxpayer inaccurately claims input tax credits for second-hand goods, they may be subject to penalties under the GST Act. The penalties can include fines and interest on the unpaid tax, with the exact penalties determined based on the circumstances of the non-compliance. Additionally, persistent or deliberate non-compliance may lead to criminal prosecution, resulting in more severe penalties.
The Rulings and Addenda also serve to update and reflect legislative changes made by the Tax and Superannuation Laws Amendment Acts. This ensures that the interpretations provided are consistent with the current legislative framework and helps taxpayers navigate the complexities of the evolving tax laws. The applicability dates of these amendments and rulings are clearly specified, ensuring that taxpayers have a clear understanding of when they must adjust their practices to comply with the updated provisions.
In summary, these Rulings and Addenda provide essential guidance on specific aspects of the GST law, impose obligations on taxpayers to understand and comply with these provisions, and outline the consequences of non-compliance, including both civil and criminal penalties.