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 2014/12 | Income tax: which accounting principles must a financial report be prepared in accordance with in order to satisfy paragraphs 230-150(1)(a), 230‑210(2)(a), 230-255(2)(a), 230‑315(2)(a) and 230‑395(2)(a) of the Income Tax Assessment Act 1997? | The Determination is an expression of the Commissioner’s position on accounting principles used when preparing financial reports. The Determination applies to years of income commencing both before and after its date of issue. |
TR 2014/2 | Income tax: the application of the ships and aircraft article of Australia’s tax treaties to taxable income derived under section 129 of the Income Tax Assessment Act 1936 by a non‑resident shipowner or charterer | The Ruling is an expression of the Commissioner’s position on the ships and aircraft article of Australia’s tax treaties to taxable income for non-resident shipowners and charterers. The Ruling applies to years of income commencing both before and after its date of issue. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
GSTR 2000/25 | Goods and services tax: GST-free supplies of water, sewerage and sewerage-like services, storm water draining services and emptying of a septic tank | The Addendum amends Goods and Services Tax Ruling GSTR 2000/25 to reflect the withdrawal and replacement of Goods and Services Tax Ruling GSTR 2000/20 Goods and services tax: commercial residential premises. The Addendum also amends the Ruling with respect to the application of Division 81 which was amended by Tax Laws Amendment (2011 Measures No. 2) Act 2011. The Addendum applies both before and after its date of issue, subject to the relevant commencement and application provisions of the Tax Laws Amendment (2011 Measures No. 2) Act 2011 and the issue date of Goods and Services Tax Ruling GSTR 2012/5. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued Rulings and an Addendum under the Income Tax Assessment Act 1997 and the Goods and Services Tax Act 1999 to clarify the application of specific tax provisions. These rulings aim to provide certainty to taxpayers regarding the accounting principles for financial reports and the application of tax treaties to taxable income derived from ships and aircraft by non-residents. Additionally, the Addendum to Goods and Services Tax Ruling GSTR 2000/25 adjusts the treatment of GST-free supplies, reflecting legislative changes and the withdrawal of previous rulings. The rulings and addendum are intended to apply to income years both before and after their issuance, ensuring that taxpayers can rely on them in their compliance and planning activities.
Scope and Application
The Commissioner of Taxation has issued several rulings and an addendum that address specific issues related to tax laws in Australia. These rulings provide guidance on accounting principles that must be followed when preparing financial reports for tax purposes, the application of tax treaties to income derived from ships and aircraft by non-resident shipowners or charterers, and clarification on GST-free supplies of water, sewerage, and related services. These determinations apply to income years commencing before and after their respective dates of issue, thereby ensuring that taxpayers have a clear understanding of their obligations under the Income Tax Assessment Act 1997 and the Goods and Services Tax Act 1999. The rulings and addendum extend their application by providing authoritative interpretations of the relevant legislation, although their scope is limited to the specific subjects addressed within each document. This guidance assists taxpayers in complying with their obligations and helps the Commissioner to administer the tax laws effectively.
Key Provisions
The key operative sections of these rulings relate to the Commissioner’s position on specific tax matters. For instance, TD 2014/12 (paragraphs 1-5) provides guidance on the accounting principles financial reports must adhere to in order to satisfy certain sections of the Income Tax Assessment Act 1997 (sections 230-150, 230-210, 230-255, 230-315, and 230-395). TR 2014/2 (paragraphs 1-6) offers clarity on the application of the ships and aircraft article of Australia's tax treaties to taxable income derived by non-resident shipowners or charterers under section 129 of the Income Tax Assessment Act 1936. GSTR 2000/25 Addendum (paragraphs 1-4) modifies the original ruling on GST-free supplies, addressing the withdrawal and replacement of previous rulings and the application of Division 81, as amended by the Tax Laws Amendment (2011 Measures No. 2) Act 2011.
These rulings impose specific obligations and requirements on the parties they govern. For financial reports, complying with the prescribed accounting principles as outlined in TD 2014/12 is mandatory to ensure adherence to the relevant sections of the Income Tax Assessment Act 1997. Similarly, non-resident shipowners and charterers must understand and apply the provisions detailed in TR 2014/2 when dealing with taxable income derived from ships and aircraft. The GSTR 2000/25 Addendum requires entities involved in the supply of water, sewerage, and related services to follow the updated guidelines concerning GST-free supplies, taking into account the relevant commencement and application provisions of the Tax Laws Amendment (2011 Measures No. 2) Act 2011.
Failure to comply with these rulings can result in various consequences. For tax purposes, non-compliance with the specified accounting principles in TD 2014/12 may lead to adjustments in assessable income and allowable deductions, potentially resulting in additional tax liabilities or penalties. Similarly, non-compliance with the provisions in TR 2014/2 may lead to incorrect tax assessments for non-resident shipowners or charterers, which can incur penalties or interest charges. Regarding GST, non-compliance with the updated provisions in the GSTR 2000/25 Addendum can result in incorrect GST reporting and payment, leading to penalties under the Taxation Administration Act 1953. The maximum penalties for GST-related offences can vary, but they may include fines and interest on unpaid GST.