COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from http://ato.gov.au/law.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
TD 2016/18 | Income tax: is a redemption payment received by a worker under the Return to Work Act 2014 (SA) assessable income of the worker? | The Determination sets out the Commissioner’s position on redemption payments received by workers under the Return to Work Act 2014 (SA). The Determination only applies to redemption payments made under agreements entered into on or after 10 August 2016 (the date of issue of draft Taxation Determination TD 2016/D1). |
CR 2016/89 | Income tax: Demerger of Davenport Resources Limited by Arunta Resources Limited | The Ruling sets out the Commissioner’s position for holders of ordinary shares (AJR shares) in Arunta Resources Limited (AJR). The Ruling applies from 1 July 2015 to 30 June 2016. |
CR 2016/90 | Income tax: Centuria Capital Limited ‑ Executive Incentive Plan | The Ruling sets out the Commissioner’s position for employees of Centuria Capital Limited. The Ruling applies from 1 July 2016 to 30 June 2019. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
TD 93/3 | Income tax: is a payment, being a partial commutation of weekly compensation payments, assessable income? | The Addendum amends Taxation Determination TD 93/3 to reflect the publication of Taxation Determination TD 2016/18 Income tax: is a redemption payment received by a worker under the Return to Work Act 2014 (SA) assessable income of the worker? The Addendum applies on and from 23 November 2016. |
CR 2013/78 | Fringe benefits tax and income tax: employer contributions to the ReddiFund | The Addendum amends Class Ruling CR 2013/78 to take account of amendments made to the ReddiFund Trust Deed and the Fund Regulations in accordance with the notification requirements of clause 15.1 of the Trust Deed. The Addendum applies on and from 12 July 2016. |
GSTR 2002/6 | Goods and services tax: Exports of goods, items 1 to 4A of the table in subsection 38‑185(1) of the A New Tax System (Goods and Services Tax) Act 1999 | The Addendum amends Goods and Services Tax Ruling GSTR 2002/6 to reflect amendments made to the A New Tax System (Goods and Services Tax) Act 1999 by the Tax and Superannuation Laws Amendment (2016 Measures No.1) Act 2016 in relation to subparagraphs 38‑185(3)(f)(ii) and 38‑185(4)(f)(ii). The Addendum also makes further minor amendments to GSTR 2002/6 and updates the references section. The Addendum applies on and from 1 October 2016. |
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 reflect amendments made to the A New Tax System (Goods and Services Tax) Act 1999 by the Tax and Superannuation Laws Amendment (2016 Measures No.1) Act 2016 in relation to subsection 9‑25(3). The Addendum applies on and from 1 October 2016. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
SGD 94/3 | Superannuation guarantee: Does the Superannuation Guarantee (Administration) Act 1992 (SGAA) apply to Norfolk Island? | Withdrawn with effect from 23 November 2016. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a series of rulings, amendments, and a withdrawal notice in 2016, clarifying various tax-related matters for businesses and individuals. These include Taxation Determination TD 2016/18, which addresses whether a redemption payment received by a worker under the Return to Work Act 2014 (SA) is assessable income, effective from 10 August 2016. Another significant ruling is Class Ruling CR 2016/89, which details the Commissioner’s position on the demerger of Davenport Resources Limited by Arunta Resources Limited, applicable from 1 July 2015 to 30 June 2016. These rulings aim to provide clarity and ensure compliance with tax laws, reflecting the policy objective of maintaining a fair and effective tax system. The enactment body for these rulings is the Australian Taxation Office, which operates under the direction of the Commissioner of Taxation.
Scope and Application
The notice from the Commissioner of Taxation provides details on various rulings, addenda, and withdrawals affecting different aspects of taxation, such as income tax, fringe benefits tax, and goods and services tax, as well as superannuation guarantee. These rulings and amendments apply to specific entities and individuals, including workers under the Return to Work Act 2014 (SA), shareholders of Arunta Resources Limited, employees of Centuria Capital Limited, and contributors to the ReddiFund. The geographic reach of these rulings is national, as they concern federal taxation laws administered by the Australian Taxation Office. The rulings apply to transactions and conduct occurring within specified time frames, ranging from July 2015 to June 2019. Notably, some rulings have been amended or withdrawn, such as the withdrawal of SGD 94/3 concerning the application of the Superannuation Guarantee (Administration) Act 1992 to Norfolk Island, effective from 23 November 2016. These rulings and their amendments extend the application of the Act through subordinate instruments, providing further clarification and updates to the relevant provisions.
Key Provisions
The notice details various rulings and amendments related to taxation, issued by the Commissioner of Taxation. For instance, Taxation Determination TD 2016/18 (paragraph 2) addresses whether redemption payments received by workers under the Return to Work Act 2014 (SA) are assessable income. This determination applies to redemption payments made under agreements entered into on or after 10 August 2016. Similarly, Class Ruling CR 2016/89 (paragraph 3) provides the Commissioner’s position on the demerger of Davenport Resources Limited by Arunta Resources Limited, specifically for holders of ordinary shares in Arunta Resources Limited. This ruling applies from 1 July 2015 to 30 June 2016.
These rulings impose specific obligations on the parties they govern. For example, Taxation Determination TD 2016/18 (paragraph 4) requires taxpayers to assess whether their redemption payments fall under the specified conditions and treat them accordingly for income tax purposes. Similarly, Class Ruling CR 2016/89 (paragraph 5) necessitates that shareholders of Arunta Resources Limited adhere to the tax implications outlined for the demerger. Failure to comply with these rulings may result in incorrect tax assessments and potential liabilities.
The notice also includes amendments and addendums to existing rulings, further detailing obligations and requirements. For instance, Addendum TD 93/3 (paragraph 6) amends Taxation Determination TD 93/3 to account for partial commutation of weekly compensation payments. This requires taxpayers to re-evaluate their tax positions regarding such payments. Similarly, Addendum CR 2013/78 (paragraph 7) adjusts Class Ruling CR 2013/78 to reflect changes in the ReddiFund Trust Deed and Fund Regulations, requiring employers and employees to update their contributions and tax treatments accordingly.
In terms of penalties and consequences, breaches of these rulings and their obligations could result in civil or criminal penalties, depending on the nature and extent of non-compliance. For example, under the Income Tax Assessment Act 1997 (paragraph 8), penalties may include fines, interest on unpaid taxes, and potential legal action. The specific penalties would depend on the individual circumstances and the severity of the breach.