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 2014/10 | Income tax: can section 177EA of the Income Tax Assessment Act 1936 apply to a 'dividend washing' scheme of the type described in this Taxation Determination? | The Determination is an expression of the Commissioner’s opinion on dividend washing schemes. The Determination applies to years of income commencing both before and after its date of issue. |
CR 2014/40 | Income tax: issue of convertible preference shares (CPS3) by Suncorp Group Limited | The Ruling sets out the Commissioner’s opinion for investors who were allotted perpetual, convertible, unguaranteed and unsecured preference shares issued by Suncorp Group Limited called Suncorp Group Limited Convertible Preference Shares (CPS3). The Ruling applies from 8 May 2014 to 30 June 2022. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
GSTD 2007/3 | Goods and services tax: if a non‑resident entity owns residential rental premises in Australia and an Australian accountant makes a supply to that entity consisting of advice about the premises and tax return preparation services, is that supply wholly or partly GST‑free if made on or after 1 April 2005? | The Addendum amends Goods and Services Tax Determination GSTD 2007/3 to reflect the withdrawal and replacement of Goods and Services Tax Ruling GSTR 2000/20 Goods and services tax: commercial and residential premises. The Addendum applies on and from 19 December 2013. |
GSTR 2007/1 | Goods and services tax: when retirement village premises include communal facilities for use by the residents of the premises | The Addendum amends Goods and Services Tax Ruling GSTR 2007/1 to reflect the withdrawal and replacement of Goods and Services Tax Ruling GSTR 2000/20 Goods and services tax: commercial residential premises. It also amends the Ruling to update the Date of Effect section to reflect the amendments within the Tax Laws Amendment (2010 GST Administration Measures No. 2) Act 2010 which came into effect on 1 July 2010. The Addendum applies both before and after its date of issue. |
WETR 2006/1 | Wine equalisation tax: the operation of the producer rebate for producers of wine in New Zealand | The Addendum amends Wine Equalisation Tax Ruling WETR 2006/1 to remove the explanation about marketing and promotional fees that is not relevant for New Zealand wine producers. The Addendum also amends Wine Equalisation Tax Ruling WETR 2006/1 to better align it with the views expressed in Wine Equalisation Tax Ruling WETR 2009/2 to the extent those views apply to New Zealand wine producers in relation to: - amendments made to the producer rebate provisions of the A New Tax System (Wine Equalisation Tax) Act 1999 (WET Act), that came into effect on 10 December 2012
- clarifying the Commissioner’s view with respect to what happens if the producer rebate is claimed when it should not be claimed or when it is over-claimed, and
- the application of amendments made to the A New Tax System (Goods and Services Tax) Act 1999, the WET Act and the Taxation Administration Act 1953 as a result of the Indirect Tax Laws Amendment (Assessment) Act 2012, which introduced a self‑assessment regime for indirect taxes.
The Addendum applies: - both before and after its date of issue to the extent that it deals with the treatment of marketing and promotional fees.
- on and from 10 December 2012 to the extent that it aligns with the view expressed in WETR 2009/2 in relation to amendments made to the producer rebate provisions of the WET Act, that came into effect on 10 December 2012.
- both before and after its date of issue to the extent that it aligns with the view expressed in WETR 2009/2 and clarifies the Commissioner’s view with respect to what happens if the producer rebate is claimed when it should not be claimed or when it is over-claimed.
- where it is aligned with the view expressed in WETR 2009/2 in relation to amendments made to the A New Tax System (Goods and Services Tax) Act 1999, the WET Act and the TAA as a result of the Indirect Tax Laws Amendment (Assessment) Act 2012, which introduced a self-assessment regime for indirect taxes and applies:
- to payments of refunds that relate to tax periods starting on or after 1 July 2012, or - liabilities and entitlements that do not relate to any tax periods that arose on or after 1 July 2012. |
PR 2013/16 | Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2016 | The Addendum amends Product Ruling PR 2013/16 to include an additional reference asset. The Addendum applies on and from 18 September 2013. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
GSTA TPP 021 | Goods and services tax: is a payment by an entity to reimburse a retail outlet for the face value of a section 100‑5 voucher (commonly referred to as a face value voucher (FVV)), which was redeemed by a customer, subject to GST? | Withdrawn with effect from 30 April 2014. |
Overview
The Commissioner of Taxation has issued various rulings and addenda to address specific issues arising from the application of Australian tax laws. One such ruling, TD 2014/10, concerns the application of section 177EA of the Income Tax Assessment Act 1936 to 'dividend washing' schemes, providing the Commissioner's opinion on these schemes and applying to income years both before and after the ruling's issue. Another ruling, CR 2014/40, addresses the taxation implications for investors in perpetual, convertible, unguaranteed, and unsecured preference shares issued by Suncorp Group Limited, applying from 8 May 2014 to 30 June 2022. Additionally, GSTD 2007/3, as amended, deals with the GST implications for supplies made to non-resident entities owning Australian residential rental premises, applying on and after 19 December 2013. These rulings and addenda are issued under the authority of the Commissioner to provide clarity and guidance on complex tax matters, ensuring taxpayers understand their obligations and rights under the law.
Scope and Application
The Commissioner of Taxation, Chris Jordan, has issued several rulings and notices concerning various aspects of taxation in Australia. These rulings provide clarification and guidance on specific issues related to income tax, goods and services tax (GST), and wine equalisation tax (WET). The rulings and notices apply to different entities, industries, and conduct, with specific dates mentioned where applicable. For example, Ruling TD 2014/10 addresses dividend washing schemes and applies to years of income commencing both before and after its date of issue. Ruling CR 2014/40 provides the Commissioner’s opinion for investors who were allotted perpetual, convertible, unguaranteed and unsecured preference shares issued by Suncorp Group Limited and applies from 8 May 2014 to 30 June 2022. Additionally, the rulings may be amended or updated through addenda or withdrawal, which also have specific application dates. The geographic reach of these rulings is nationwide, applying to entities and individuals within the Australian jurisdiction.
Key Provisions
The Commissioner of Taxation has issued several rulings and addenda that provide guidance on various aspects of income tax, goods and services tax (GST), and wine equalisation tax (WET). For example, Taxation Determination TD 2014/10 (paragraph 1) provides the Commissioner's opinion on whether section 177EA of the Income Tax Assessment Act 1936 can apply to a 'dividend washing' scheme, while Ruling CR 2014/40 (paragraph 2) provides guidance for investors who were allotted perpetual, convertible, unguaranteed, and unsecured preference shares issued by Suncorp Group Limited. These rulings apply to specific periods as stated in the notices.
These rulings impose obligations on the parties or entities they govern, such as providing guidance on the application of tax laws in specific circumstances or updating previous rulings to reflect changes in the law. For example, the Addendum to Goods and Services Tax Determination GSTD 2007/3 (paragraph 3) amends the original ruling to reflect the withdrawal and replacement of another ruling, while the Addendum to Goods and Services Tax Ruling GSTR 2007/1 (paragraph 4) updates the ruling to reflect amendments made to the Tax Laws Amendment (2010 GST Administration Measures No. 2) Act 2010. These addenda are intended to ensure that taxpayers have accurate and up-to-date guidance on the application of GST.
Breach of the obligations imposed by these rulings may result in civil or criminal consequences, including penalties. For example, the Commissioner may take action to recover any overpaid refunds or to impose penalties for non-compliance with tax laws. The maximum penalties for tax offences are set out in the relevant tax Acts, such as the Income Tax Assessment Act 1936, the A New Tax System (Goods and Services Tax) Act 1999, and the A New Tax System (Wine Equalisation Tax) Act 1999. These penalties can be significant and may include fines and imprisonment. It is therefore important for taxpayers to ensure that they comply with the obligations imposed by these rulings to avoid any potential consequences.