COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
TD 2014/11 | 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 2014. | The Determination sets out the Commissioner’s position on the car parking threshold commencing on 1 April 2014. The Determination applies to the FBT year commencing on 1 April 2014. |
CR 2014/43 | Income tax: Goodman Group: Tax Exempt Employee Share Plan | The Ruling sets out the Commissioner’s position for employees of Goodman Property Services (Aust) Pty Ltd and Moorabin Airport Corporation Pty Ltd who are participants in the Goodman Group Tax Exempt Employee Share Plan. The Ruling applies from 1 July 2012. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
TR 2012/8 | Income tax and fringe benefits tax: assessability of amounts received to reimburse legal costs incurred in disputes concerning termination of employment | The Addendum amends Taxation Ruling TR 2012/8 to improve the terminology used in Example 3, to ensure there is no confusion in the application of the Ruling having regard to current employment and industrial laws. The Addendum applies on and from 14 May 2014. |
Overview
The Taxation Determinations and Rulings, issued by the Commissioner of Taxation, serve to clarify the application of specific provisions within the Australian tax laws. TD 2014/11, issued in the 2014 Gazette, provides clarity on the car parking threshold for fringe benefits tax (FBT) for the FBT year commencing on 1 April 2014, aiming to ensure that taxpayers and employers can accurately calculate and report FBT liabilities. CR 2014/43 offers guidance for employees of Goodman Property Services (Aust) Pty Ltd and Moorabin Airport Corporation Pty Ltd participating in the Goodman Group Tax Exempt Employee Share Plan, clarifying their tax obligations from 1 July 2012. Additionally, TR 2012/8, amended by TR 2012/8 Addendum, addresses the assessability of amounts received to reimburse legal costs incurred in disputes concerning termination of employment, with the amendment effective from 14 May 2014, to align with current employment and industrial laws. These rulings are instrumental in providing certainty and compliance for taxpayers within the Australian tax framework.
Scope and Application
The notice pertains to several rulings issued by the Commissioner of Taxation, Chris Jordan, concerning both fringe benefits tax (FBT) and income tax. The rulings are designed to clarify the application of specific sections of Australian tax legislation to particular circumstances. For instance, TD 2014/11 provides clarification on the car parking threshold for the FBT year commencing on 1 April 2014, applying specifically to entities and individuals subject to FBT regulations during that year. CR 2014/43 addresses the tax treatment of employees participating in the Goodman Group Tax Exempt Employee Share Plan, applying from 1 July 2012, and is relevant to Goodman Property Services (Aust) Pty Ltd and Moorabin Airport Corporation Pty Ltd. The notice also includes an addendum, TR 2012/8, which amends a previous ruling to correct terminology in an example, ensuring clarity in the application of the ruling under current employment and industrial laws, effective from 14 May 2014. These rulings apply to taxpayers, entities, and participants involved in the specified circumstances, with the scope determined by the relevant sections of the Fringe Benefits Tax Assessment Act 1986 and other applicable tax legislation.
Key Provisions
The main operative sections of these rulings provide specific guidance on particular aspects of Australian taxation law. Ruling TD 2014/11 (paragraph 1) sets out the Commissioner's position on the car parking threshold for the Fringe Benefits Tax (FBT) year commencing on 1 April 2014. This ruling directly affects businesses and employers by clarifying the threshold for car parking benefits subject to FBT. Ruling CR 2014/43 (paragraph 2) outlines the Commissioner's position for employees of Goodman Property Services (Aust) Pty Ltd and Moorabin Airport Corporation Pty Ltd participating in the Goodman Group Tax Exempt Employee Share Plan, effective from 1 July 2012. Lastly, Addendum TR 2012/8 (paragraph 3) amends the previous ruling TR 2012/8 to clarify the assessability of amounts received to reimburse legal costs incurred in disputes concerning termination of employment, effective from 14 May 2014.
These rulings impose specific obligations on taxpayers and employers. For instance, under Ruling TD 2014/11, businesses must ensure they accurately calculate and report any car parking benefits provided to employees in accordance with the specified threshold to avoid FBT liabilities. Ruling CR 2014/43 requires Goodman Property Services (Aust) Pty Ltd and Moorabin Airport Corporation Pty Ltd to adhere to the tax treatment outlined for the employee share plan. Employers must ensure compliance with these provisions when dealing with share plans and related benefits. Addendum TR 2012/8 mandates that employers and employees accurately report and assess reimbursements for legal costs in termination disputes, ensuring that these are correctly treated under income tax and fringe benefits tax laws.
Failure to comply with these rulings can lead to civil or criminal consequences. While the specific penalties are not detailed in the gazetted text, breaches of FBT provisions can generally result in penalties equal to the unpaid FBT plus interest. For income tax, non-compliance can lead to penalties, fines, and in severe cases, criminal charges. The exact penalties depend on the nature and extent of the breach, and the Commissioner of Taxation has the authority to enforce compliance through various means, including audits, investigations, and legal action.