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 2019/8 | Fringe benefits tax: clients who use Two10degrees Pty Ltd Global Alerting Platform in Vehicle Management System for car log book and odometer records | The Ruling sets out the Commissioner’s position on those employers who use Two10degrees Pty Ltd’s Global Alerting Platform in Vehicle Management System for car log book and odometer record keeping requirements. The Ruling applies from 1 April 2018. |
CR 2019/9 | Income tax: unit for unit roll-over: exchange of units in Ophir High Conviction Fund for replacement units | The Ruling sets out the Commissioner’s position on holders of units in the Ophir High Conviction Fund (Ophir HCF). The Ruling applies from 1 July 2018 to 30 June 2019. The Ruling continues to apply after 30 June 2019 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
TR 2004/11A | Income tax: consolidation: the meaning and application of the single entity rule in Part 3‑90 of the Income Tax Assessment Act 1997 | This addendum amends Taxation Ruling 2004/11 to include an appendix explaining the Commissioner’s view of the decision of the Full Federal Court in Channel Pastoral Holdings Pty Ltd v. Federal Commissioner of Taxation. The appendix provides guidance on how the Commissioner will administer the relevant provisions of Part IVA of the Income Tax Assessment Act 1936 and Part 3‑90 of the Income Tax Assessment Act 1997 following the decision of the Full Federal Court in that case. This Addendum applies on and from 30 January 2019. |
Overview
The Commissioner of Taxation has issued Rulings under the Income Tax Assessment Act 1997 to clarify the tax treatment of specific financial products and systems. CR 2019/8 addresses the fringe benefits tax implications of employers using Two10degrees Pty Ltd’s Global Alerting Platform in their Vehicle Management System for maintaining car log books and odometer records. This ruling aims to provide certainty to employers who utilise this technology for compliance with record-keeping requirements. Similarly, CR 2019/9 outlines the tax treatment for unit holders in the Ophir High Conviction Fund when exchanging units, applying from 1 July 2018 to 30 June 2019, and continuing for entities involved in the scheme beyond this period. These rulings aim to ensure taxpayers are aware of their obligations and can plan accordingly. TR 2004/11A, an addendum to Taxation Ruling 2004/11, provides further clarification on the application of the single entity rule in relation to consolidation, incorporating insights from the Full Federal Court’s decision in Channel Pastoral Holdings Pty Ltd v. Federal Commissioner of Taxation. This ruling assists in interpreting complex tax provisions and ensuring consistent application by the Commissioner.
Scope and Application
The Commissioner of Taxation has issued several rulings and an addendum that outline the Commissioner's position on specific matters related to taxation laws. Ruling CR 2019/8 pertains to fringe benefits tax and applies to employers using Two10degrees Pty Ltd's Global Alerting Platform in Vehicle Management Systems for managing car log books and odometer records. This ruling is effective from 1 April 2018. Similarly, Ruling CR 2019/9 concerns income tax, specifically the unit for unit roll-over in relation to the exchange of units in the Ophir High Conviction Fund. This ruling applies from 1 July 2018 to 30 June 2019, and continues to apply to entities who entered into the specified scheme during this period. Additionally, Addendum TR 2004/11A to Taxation Ruling 2004/11 clarifies the meaning and application of the single entity rule in Part 3-90 of the Income Tax Assessment Act 1997, following a Full Federal Court decision. This addendum applies from 30 January 2019.
Key Provisions
The Commissioner of Taxation has issued several rulings and an addendum, each pertaining to specific aspects of taxation in Australia. Firstly, Ruling CR 2019/8 (Fringe Benefits Tax: clients who use Two10degrees Pty Ltd Global Alerting Platform in Vehicle Management System for car log book and odometer records) establishes the Commissioner’s position on employers using Two10degrees Pty Ltd’s Global Alerting Platform for maintaining vehicle log books and odometer records. This ruling is applicable from 1 April 2018, providing clarity and compliance requirements for employers utilising this specific technology in managing their fringe benefits tax obligations.
Secondly, Ruling CR 2019/9 (Income Tax: unit for unit roll-over: exchange of units in Ophir High Conviction Fund for replacement units) outlines the Commissioner’s stance on the exchange of units in the Ophir High Conviction Fund, specifying the conditions under which such exchanges qualify for the unit for unit roll-over. This ruling applies from 1 July 2018 to 30 June 2019, and continues to apply to all entities that entered into the scheme during this period. It ensures that taxpayers are aware of the tax implications of such exchanges.
In addition to these rulings, an addendum has been issued to Taxation Ruling 2004/11, referred to as Addendum TR 2004/11A. This addendum, titled "Income tax: consolidation: the meaning and application of the single entity rule in Part 3-90 of the Income Tax Assessment Act 1997," amends the original ruling to include an appendix explaining the Commissioner’s interpretation of the Full Federal Court's decision in Channel Pastoral Holdings Pty Ltd v. Federal Commissioner of Taxation. This addendum, effective from 30 January 2019, provides further guidance on the administration of the relevant provisions of Part IVA of the Income Tax Assessment Act 1936 and Part 3-90 of the Income Tax Assessment Act 1997.
Entities and individuals governed by these rulings and the addendum must adhere to the specified conditions and requirements set forth by the Commissioner. Failure to comply with these provisions could result in various consequences, including reassessments of tax liabilities, interest charges, and potential penalties. The specific penalties for non-compliance are not detailed in the provided text, but they typically include fines and, in severe cases, criminal charges. It is essential for taxpayers to ensure they understand and comply with these rulings to avoid any adverse tax consequences.