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 2016/85 | Fringe benefits tax: employer clients of Community CPS Australia Limited trading as Beyond Bank Australia who are subject to the provisions of either section 57A or section 65J of the Fringe Benefits Tax Assessment Act 1986 and make use of the Meal Entertainment Card facility | The Ruling sets out the Commissioner’s position for those employers, who enter into an arrangement with Community CPS Australia Limited trading as Beyond Bank Australia to provide the Meal Entertainment Card facility to the employer’s employees. The Ruling applies from 1 April 2016. |
CR 2016/86 | Income tax: assessable income: payments received under the South Australian Stolen Generations Reparations Scheme | The Ruling sets out the Commissioner’s position for eligible applicants who receive an ex-gratia payment from the South Australian Government under the Stolen Generations Reparations Scheme. The Ruling applies from 19 November 2015 to 30 June 2019. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
PR 2016/3 | Income tax: TFS Indian Sandalwood Project 2016 Sophisticated Investor Offer | The Addendum amends Product Ruling PR 2016/3 to amend ruling citations. The Addendum applies on and from 13 April 2016. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a series of rulings and an addendum concerning various aspects of taxation under Australian law. Specifically, Ruling CR 2016/85 pertains to fringe benefits tax for employers who utilise the Meal Entertainment Card facility provided by Community CPS Australia Limited, trading as Beyond Bank Australia, under sections 57A or 65J of the Fringe Benefits Tax Assessment Act 1986. This ruling aims to clarify the tax obligations of these employers, effective from 1 April 2016. Additionally, Ruling CR 2016/86 addresses the assessable income of individuals who receive payments under the South Australian Stolen Generations Reparations Scheme, providing clarity for the period between 19 November 2015 and 30 June 2019. These rulings were issued to address specific tax issues arising from particular schemes and arrangements, thereby ensuring taxpayers are well informed of their obligations. The Addendum PR 2016/3, which amends Product Ruling PR 2016/3, updates ruling citations for the TFS Indian Sandalwood Project 2016 Sophisticated Investor Offer, effective from 13 April 2016. These measures were enacted by the Commissioner of Taxation to maintain compliance and provide necessary guidance to taxpayers involved in these specific financial arrangements.
Scope and Application
The Commissioner of Taxation, Chris Jordan, has issued two rulings that outline specific positions on fringe benefits tax and income tax, respectively. CR 2016/85 pertains to employers who are clients of Community CPS Australia Limited trading as Beyond Bank Australia and who utilise the Meal Entertainment Card facility for their employees. This ruling applies to employers subject to sections 57A or 65J of the Fringe Benefits Tax Assessment Act 1986 and sets out the Commissioner's stance on such arrangements, effective from 1 April 2016. On the other hand, CR 2016/86 provides clarity on the income tax implications for eligible applicants who receive an ex-gratia payment under the South Australian Stolen Generations Reparations Scheme. This ruling applies from 19 November 2015 to 30 June 2019, offering guidance on the assessable income aspects of such reparations. Additionally, the notice includes an addendum, PR 2016/3, which amends Product Ruling PR 2016/3 to correct ruling citations, effective from 13 April 2016.
Key Provisions
The main operative sections of these rulings pertain to specific taxation scenarios involving fringe benefits and income tax. Ruling CR 2016/85 (paragraph 2) outlines the Commissioner's position on employers using the Meal Entertainment Card facility provided by Community CPS Australia Limited trading as Beyond Bank Australia. This ruling applies to employers subject to sections 57A or 65J of the Fringe Benefits Tax Assessment Act 1986, who must follow the Commissioner's guidelines when using this facility for their employees. Similarly, Ruling CR 2016/86 (paragraph 3) clarifies the assessable income position for payments received under the South Australian Stolen Generations Reparations Scheme, which applies to eligible applicants from 19 November 2015 to 30 June 2019. The Addendum to Product Ruling PR 2016/3 (paragraph 4), pertaining to the TFS Indian Sandalwood Project 2016 Sophisticated Investor Offer, modifies previous citations in the ruling, effective from 13 April 2016.
The obligations imposed on the parties governed by these rulings are primarily informational and procedural. Employers utilising the Meal Entertainment Card facility must adhere to the Commissioner’s guidelines to ensure compliance with the Fringe Benefits Tax Assessment Act 1986. Eligible applicants under the South Australian Stolen Generations Reparations Scheme need to understand how their ex-gratia payments are treated for income tax purposes. For the TFS Indian Sandalwood Project 2016, the Addendum ensures that investors are correctly informed about the revised ruling citations, maintaining transparency and compliance with tax obligations.
In terms of breaches and consequences, the rulings themselves do not explicitly detail specific offences, penalties, or civil/criminal consequences. However, non-compliance with these rulings may result in the Commissioner taking action under the relevant taxation laws. For example, failure to accurately report fringe benefits or income could lead to assessments and additional taxes owed, along with potential penalties for non-compliance. It is important to note that while the rulings provide guidance, ultimate responsibility for compliance rests with the taxpayers, and they should seek professional advice to ensure adherence to the law.