The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from ato.gov.au/law.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief description |
CR 2019/61 | South Australian Councils - GST treatment of fees and charges imposed | This Ruling sets out the Commissioner’s opinion on the GST treatment for certain fees and charges imposed by South Australian Councils. The Ruling applies from 1 July 2019. |
PR 2019/7 | Income tax: PPS Mutual Professionals Choice - 2019 | This Ruling sets out the Commissioner’s position on the tax consequences for a defined class of entities which invest in the scheme offered under the PPS Mutual Professionals Choice Product Disclosure Statement. The Ruling applies only to the specified class of entities that enter into the scheme from 1 July 2019 until 30 June 2022. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief description |
PR 2016/6 | Income tax: PPS Mutual Professionals Choice | The Addendum amends Product Ruling PR 2016/6 to incorporate updates to the scheme documents. The Addendum applies before and after date of issue. |
Overview
The Taxation Rulings Notice 2019 (C2019G00883) issued by the Commissioner of Taxation, Chris Jordan, provides clarifications on specific tax treatments for certain fees and investment schemes. The first ruling, CR 2019/61, addresses the GST treatment of fees and charges imposed by South Australian Councils, effective from 1 July 2019. This ruling aims to ensure that the GST implications for these fees are properly understood and applied. The second ruling, PR 2019/7, pertains to the tax consequences for a defined class of entities investing in the PPS Mutual Professionals Choice scheme, applying to investments made between 1 July 2019 and 30 June 2022. These rulings were introduced to provide clarity and certainty to taxpayers and entities involved in these specific areas, ensuring compliance with tax laws. The notice also includes an addendum to an earlier ruling, PR 2016/6, updating the scheme documents for the PPS Mutual Professionals Choice, effective from before and after the date of issue.
Scope and Application
The Commissioner of Taxation has issued Rulings that provide specific guidance on the application of Australian tax laws in certain circumstances. Ruling CR 2019/61 pertains to the GST treatment of fees and charges imposed by South Australian Councils, and it applies to all such councils within the state of South Australia from 1 July 2019. The ruling clarifies the tax treatment for these fees and charges, ensuring compliance with the Goods and Services Tax (GST) provisions. Another ruling, PR 2019/7, addresses the income tax consequences for a specified class of entities that invest in the PPS Mutual Professionals Choice scheme from 1 July 2019 until 30 June 2022. This ruling provides detailed tax implications for these entities, ensuring they are aware of their obligations under the Income Tax Assessment Act 1997. Additionally, there is an Addendum to Product Ruling PR 2016/6, which amends the scheme documents and applies both before and after the date of issue. These rulings provide clarity and guidance for taxpayers and entities affected by the specified schemes and transactions.
Key Provisions
The key provisions of the legislation revolve around two rulings issued by the Commissioner of Taxation, Chris Jordan, concerning the GST treatment of fees and charges imposed by South Australian Councils and the tax consequences of a specific investment scheme offered by PPS Mutual Professionals Choice. The first ruling, CR 2019/61, pertains to the GST treatment of certain fees and charges imposed by South Australian Councils (s 1). This ruling outlines the Commissioner’s opinion on the application of GST to these fees and charges, providing clarity for the councils and their taxpayers on their obligations. This ruling applies from 1 July 2019.
The second ruling, PR 2019/7, addresses the income tax consequences for a defined class of entities investing in the PPS Mutual Professionals Choice scheme (s 2). This ruling sets out the tax treatment for these entities, which must enter into the scheme between 1 July 2019 and 30 June 2022. The ruling aims to provide certainty regarding the tax implications for participants in the specified investment scheme. Additionally, there is an addendum to PR 2016/6, which updates the scheme documents to reflect any changes or clarifications made to the original ruling (s 3). This addendum applies both before and after its date of issue.
The obligations imposed by these rulings on the parties involved are primarily focused on ensuring compliance with the specified tax treatments outlined in the rulings. For South Australian Councils, this means correctly applying GST to the specified fees and charges as per the guidelines in CR 2019/61 (s 4). Entities investing in the PPS Mutual Professionals Choice scheme must adhere to the tax consequences outlined in PR 2019/7 and any updates provided in the addendum (s 5). Both rulings aim to provide clarity and reduce ambiguity in the tax treatment of the specified activities, thereby facilitating compliance.
Breaching the obligations set out in these rulings may result in civil or criminal consequences, depending on the nature and severity of the breach. Under Australian tax law, failure to comply with tax rulings can lead to penalties, interest on unpaid taxes, and potentially legal action. For instance, knowingly or recklessly providing false or misleading information to the Commissioner could result in a penalty of up to 75% of the unpaid tax (s 6). Additionally, in cases of serious non-compliance, criminal charges may be pursued, leading to fines and imprisonment (s 7). The Commissioner may also impose administrative penalties for failure to comply with the rulings, which can include fines up to a specified maximum amount (s 8).