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 |
CR 2018/21 | Income tax: Pepper Group Limited Scheme of Arrangement and Payment of Special Dividend | The Ruling sets out the Commissioner’s position of shareholders of Pepper Group Limited Scheme of Arrangement and Payment of Special Dividend. The Ruling applies from 1 July 2017 to 30 June 2018 and continues to apply after 30 June 2018 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. |
TD 2018/6 | Income tax: what is the car limit under section 40‑230 of the Income Tax Assessment Act 1997 for the 2018–19 financial year? | The Determination sets out the Commissioner’s position on what is the car limit under section 40‑230 of the Income Tax Assessment Act 1997 for the 2018–19 financial year? The Determination applies for the financial year commencing on 1 July 2018. |
TD 2018/7 | Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986 what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2018? | The Determination sets out the Commissioner’s position on what the car parking threshold for the fringe benefits tax year commencing on 1 April 2018 is for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986. The Determination applies to the FBT year commencing on 1 April 2018. |
LCTD 2018/1 | Luxury car tax: what is the luxury car tax threshold and the fuel-efficient car limit for 2018–19 financial year? | The Determination sets out the Commissioner’s position on what the luxury car tax threshold and the fuel-efficient car limit is for the 2018–19 financial year. The Determination applies to the financial year commencing 1 July 2018. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
PR 2015/3 | Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2018 – Flexi Professional | The Addendum amends Product Ruling PR 2015/9 to incorporate additional Product Disclosure Statement and Policy Terms documents. The Addendum applies on and from 1 April 2015. |
PR 2017/2 | Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2020 | The Addendum amends Product Ruling PR 2017/2 to incorporate a draft Security Trust Deed received on 27 March 2018 as a scheme document. The Addendum applies on and from 5 April 2017. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
TD 2012/16 | Income tax: what is the car limit for the 2012–13 financial year? | Taxation Determination TD 2012/16 is withdrawn with effect from 23 May 2018. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued various rulings and determinations under the authority of the Income Tax Assessment Act 1997 and the Fringe Benefits Tax Assessment Act 1986, among others, to provide clarity and guidance on specific tax issues. These rulings and determinations aim to address the need for clear interpretation and application of tax laws to ensure compliance and to provide certainty to taxpayers. For example, Ruling CR 2018/21 provides the Commissioner’s position on the tax treatment of shareholders involved in the Pepper Group Limited Scheme of Arrangement and Payment of Special Dividend, effective from 1 July 2017 to 30 June 2018, and continuing thereafter for relevant entities. Similarly, Taxation Determination TD 2018/6 clarifies the car limit under section 40-230 of the Income Tax Assessment Act 1997 for the 2018-19 financial year. These instruments are crucial in ensuring taxpayers understand their obligations and can plan their financial affairs accordingly.
Scope and Application
The Commissioner of Taxation has issued several rulings and determinations, applicable to specific entities, industries, and conduct within Australia. For instance, Ruling CR 2018/21 applies to shareholders of Pepper Group Limited who entered into a specified scheme during the term of the Ruling, which is from 1 July 2017 to 30 June 2018 and continues to apply after 30 June 2018. Similarly, Taxation Determination TD 2018/6 provides guidance on the car limit under section 40-230 of the Income Tax Assessment Act 1997 for the 2018-19 financial year, applying to financial years commencing on 1 July 2018. Furthermore, TD 2018/7 outlines the car parking threshold for the fringe benefits tax year commencing on 1 April 2018. These rulings and determinations provide clarity on various tax-related matters and are applicable within the Commonwealth of Australia. Additionally, some of these rulings and determinations may extend or restrict their application through subordinate instruments.
Key Provisions
The main operative sections of these Rulings and Determinations provide specific guidance on income tax, fringe benefits tax, luxury car tax, and other related tax matters for the specified financial years. For instance, CR 2018/21 (Ruling Number CR 2018/21) sets out the Commissioner’s position on the Pepper Group Limited Scheme of Arrangement and Payment of Special Dividend, applicable from 1 July 2017 to 30 June 2018 and beyond for relevant entities. Similarly, TD 2018/6 (Taxation Determination TD 2018/6) outlines the car limit under section 40-230 of the Income Tax Assessment Act 1997 for the 2018-19 financial year. TD 2018/7 (Taxation Determination TD 2018/7) specifies the car parking threshold for the fringe benefits tax year commencing 1 April 2018. LCTD 2018/1 (Luxury Car Tax Determination LCTD 2018/1) details the luxury car tax threshold and the fuel-efficient car limit for the 2018-19 financial year.
These provisions impose certain obligations on taxpayers and entities. For example, shareholders involved in the Pepper Group Limited Scheme of Arrangement and Payment of Special Dividend must adhere to the guidelines set out in Ruling CR 2018/21. Businesses claiming deductions for interest in relation to investments in the Macquarie Flexi 100 Trust must follow the amended Product Rulings PR 2015/3 and PR 2017/2. Additionally, entities must comply with the specified car limits and thresholds as outlined in TD 2018/6, TD 2018/7, and LCTD 2018/1 to ensure correct reporting and payment of taxes.
Breaches of these provisions can lead to various civil and criminal consequences. While specific offences and penalties are not detailed in the Rulings and Determinations themselves, non-compliance with income tax and fringe benefits tax laws generally can result in penalties such as fines and interest on unpaid taxes. The Commissioner may also pursue legal action in more severe cases of non-compliance or fraud, potentially leading to substantial financial penalties and legal consequences. The withdrawal of Taxation Determination TD 2012/16 highlights the importance of staying updated with the latest tax provisions and guidelines to avoid any inadvertent breaches.