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 2014/1 | Income tax: off‑market share buy‑back: IMB Limited | The Ruling sets out the Commissioner’s opinion for all ordinary shareholders of IMB Limited. The Ruling applies from 1 July 2013 to 30 June 2014. |
CR 2014/2 | Income tax and fringe benefits tax: clients of Perfekt COM Pty Ltd trading as GPS Log Book who use the Vehicle Tax Period Report | The Ruling sets out the Commissioner’s opinion for all clients of Perfekt COM Pty Ltd trading as GPS Log Book (Perfekt COM) who use the Vehicle Tax Period Report. The Ruling applies from 1 April 2013. |
CR 2014/3 | Goods and services tax: Department of Environment and Primary Industries Victoria (DEPI) – Bushbroker Scheme Landowner Agreement and Credit Agreement | The Ruling sets out the Commissioner’s opinion for all owners of land that enter into the BushBroker Landowner Agreement and those entities that purchase Credits (Purchasers) under the BushBroker Credit Agreement. The Ruling applies from 1 July 2012. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
FTR 2009/1 | Fuel tax: entitlement to a fuel tax credit under section 41-5 of the Fuel Tax Act 2006 in a vehicle or equipment hire arrangement | The Addendum amends Fuel Tax Ruling FTR 2009/1 to include an example of a hire arrangement involving a ‘licence to use’ fuel. The Addendum applies both before and after its date of issue. |
FTD 2009/1 | Fuel tax: what is the meaning of ‘use’ for the purposes of section 41‑5 of the Fuel Tax Act 2006? | The Addendum amends Fuel Tax Determination FTD 2009/1 to make minor changes to take into account the decision in Gem Plant Hire Pty Ltd ATF The Condello Family Trust v. Commissioner of Taxation [2012] AATA 852, and insert a cross reference to Fuel Tax Ruling FTR 2009/1. The Addendum applies both before and after its date of issue. |
TD 2006/57 | Income tax: consolidation: what is an excluded asset under subsection 705‑35(2) of the Income Tax Assessment Act 1997? | The Addendum amends Taxation Determination TD 2006/57 to delete an interpretation of the High Court decision in Federal Commissioner of Taxation v. Energy Resources of Australia Limited (1996) 185 CLR 66 (ERA) in the explanation section of the determination, which is inconsistent with the decision of the Full Federal Court in Commissioner of Taxation v. Messenger Press (2013) 212 FCR 298. The passages were quoted to provide additional context for the explanation of the meaning of the word ‘under’ in subsection 705‑35(2). Removal of the references to the ERA decision will not change the range of circumstances to which the determination applies. The Addendum applies on and from 8 January 2014. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
GSTA TPP 010 | Goods and services tax: what are the registration requirements for resident agents acting for non‑residents? | Withdrawn with effect from 8 January 2014. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a notice of several rulings and addenda under the Commonwealth of Australia Constitution, enacted by the Australian Parliament, aimed at clarifying tax obligations and entitlements for various entities and individuals. These rulings address specific issues such as income tax implications for shareholders of IMB Limited, fringe benefits tax for clients of Perfekt COM Pty Ltd, and goods and services tax under the Bushbroker Scheme for landowners and credit purchasers in Victoria. The objective of these rulings is to provide certainty and guidance to taxpayers, ensuring compliance with tax laws and to interpret existing provisions in light of judicial decisions. These rulings and addenda are designed to offer definitive interpretations of the law, applicable from specific dates as noted, to assist taxpayers in understanding and meeting their obligations.
Scope and Application
The Commissioner of Taxation, Chris Jordan, has issued a series of rulings and addenda, which provide guidance on specific tax matters and amendments to previous rulings and determinations. CR 2014/1 concerns the income tax implications for ordinary shareholders of IMB Limited involved in an off-market share buy-back, applicable from 1 July 2013 to 30 June 2014. CR 2014/2 addresses the income tax and fringe benefits tax for clients of Perfekt COM Pty Ltd who use the Vehicle Tax Period Report, effective from 1 April 2013. CR 2014/3 deals with the goods and services tax (GST) for land owners entering into a BushBroker Landowner Agreement and entities purchasing credits under a BushBroker Credit Agreement, effective from 1 July 2012. The addenda to existing rulings and determinations, such as FTR 2009/1, FTD 2009/1, and TD 2006/57, provide further clarification and amendments to fuel tax, income tax, and GST, applying either retroactively or prospectively from their issue dates. Notably, GSTA TPP 010 has been withdrawn with effect from 8 January 2014. These rulings and addenda apply nationally across Australia and provide essential guidance to taxpayers and entities in navigating complex tax obligations and ensuring compliance with current legislative frameworks.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued several rulings and addenda that provide clarification and guidance on specific tax issues. Ruling CR 2014/1 (section 1) provides the Commissioner's opinion on the tax implications for ordinary shareholders of IMB Limited for an off-market share buy-back occurring between 1 July 2013 and 30 June 2014. Similarly, Ruling CR 2014/2 (section 2) pertains to the income tax and fringe benefits tax implications for clients of Perfekt COM Pty Ltd trading as GPS Log Book who use the Vehicle Tax Period Report, applicable from 1 April 2013. Ruling CR 2014/3 (section 3) addresses the goods and services tax (GST) implications for land owners entering into the BushBroker Landowner Agreement and for entities purchasing Credits under the BushBroker Credit Agreement, effective from 1 July 2012.
These rulings impose specific obligations on the respective parties. For instance, ordinary shareholders of IMB Limited must adhere to the tax treatment outlined in Ruling CR 2014/1. Clients of Perfekt COM Pty Ltd must ensure compliance with the income tax and fringe benefits tax guidelines in Ruling CR 2014/2. Similarly, land owners and purchasers of Credits under the BushBroker agreements must follow the GST provisions set forth in Ruling CR 2014/3. Failure to comply with these rulings could result in tax liabilities or penalties.
The addenda to these rulings also carry implications. For example, Addendum FTR 2009/1 (section 4) modifies Fuel Tax Ruling FTR 2009/1 to include an example of a hire arrangement involving a ‘licence to use’ fuel, which is applicable both before and after its issue date. Addendum FTD 2009/1 (section 5) amends Fuel Tax Determination FTD 2009/1 to reflect the decision in Gem Plant Hire Pty Ltd ATF The Condello Family Trust v. Commissioner of Taxation [2012] AATA 852 and to insert a cross-reference to Fuel Tax Ruling FTR 2009/1, also effective both before and after its issue. Addendum TD 2006/57 (section 6) amends Taxation Determination TD 2006/57 by removing inconsistent references to a High Court decision, effective from 8 January 2014. These amendments ensure that the rulings reflect current legal interpretations and provide clearer guidance to taxpayers.
Breach of the provisions outlined in these rulings and addenda may lead to various civil and criminal consequences. The specific penalties depend on the nature and severity of the breach but can include fines, interest on unpaid taxes, and in severe cases, criminal charges. It is crucial for the affected parties to adhere to these rulings to avoid potential legal repercussions.