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.
Ruling Number | Subject | Brief Description |
CR 2013/47 | Income tax: scrip for scrip: exchange of shares in Xstrata plc for shares in Glencore International plc | The Ruling sets out the Commissioner’s opinion for shareholders in Xstrata plc. The Ruling applies from 1 July 2012 to 30 June 2013. |
Ruling Number | Subject | Brief Description |
CR 2012/79 | Income tax: Victoria Police Voluntary Departure Program 2012‑13 Early Retirement Scheme | The Addendum amends Class Ruling CR 2012/79 to reflect a variation to extend the time period for eligible employees within a specified group to express an interest in the early retirement scheme and the time period for when an offer will be made. The Addendum applies on and from 5 September 2012. |
Overview
The Taxation Rulings and the Addendum issued by the Commissioner of Taxation under the authority of the Income Tax Assessment Act 1936 aim to provide clarity and guidance on specific tax issues affecting taxpayers. The rulings address complex scenarios such as the exchange of shares in Xstrata plc for shares in Glencore International plc, which is relevant for shareholders in Xstrata plc during the financial years 2012 to 2013. The Addendum to the ruling concerning the Victoria Police Voluntary Departure Program 2012-13 Early Retirement Scheme extends the time periods for eligible employees to express interest and for offers to be made, reflecting the evolving nature of the scheme. These rulings serve to bridge gaps in understanding and application of tax laws by providing definitive positions on specific tax matters. The purpose of these rulings is to assist taxpayers in complying with their obligations and to ensure a consistent approach to taxation matters by the Australian Taxation Office.
Scope and Application
The Commissioner of Taxation's Rulings, such as CR 2013/47 and its subsequent Addendum CR 2012/79, provide specific guidance on tax obligations and entitlements in defined circumstances. CR 2013/47 applies to shareholders who exchanged shares in Xstrata plc for shares in Glencore International plc, outlining the Commissioner's opinion on the income tax implications of such transactions. This ruling is relevant for the period from 1 July 2012 to 30 June 2013, thus providing clarity to those who participated in this exchange during this timeframe. CR 2012/79, on the other hand, initially addressed the tax treatment of the Victoria Police Voluntary Departure Program 2012-13 Early Retirement Scheme. The Addendum to this ruling extends the time periods for eligible employees to express interest in the early retirement scheme and for offers to be made, reflecting changes that came into effect from 5 September 2012. Both rulings are intended to ensure compliance with income tax laws for the specified activities and time frames, and they are applicable within the Commonwealth of Australia, governed by the Australian Taxation Office.
Key Provisions
The main operative sections of this notice pertain to two rulings issued by the Commissioner of Taxation: CR 2013/47 and CR 2012/79, which is subsequently amended by an addendum. CR 2013/47 (paragraph 1) provides the Commissioner’s opinion for shareholders in Xstrata plc regarding the exchange of shares for shares in Glencore International plc, which applies from 1 July 2012 to 30 June 2013. CR 2012/79 (paragraph 2), initially addressing the income tax implications of the Victoria Police Voluntary Departure Program 2012–13 Early Retirement Scheme, has been amended by an addendum (paragraph 3) to adjust the time periods for eligible employees to express interest and for offers to be made, effective from 5 September 2012.
The obligations and requirements imposed by these rulings are primarily informational and procedural. For CR 2013/47, shareholders in Xstrata plc must adhere to the Commissioner’s opinion on the tax implications of exchanging their shares for those in Glencore International plc within the specified timeframe. For CR 2012/79 and its addendum, eligible employees within the specified group of the Victoria Police must follow the extended timelines to express interest in the early retirement scheme and for offers to be made, ensuring compliance with the updated procedural requirements.
In terms of consequences for breach, the notice does not explicitly state any offences, penalties, or consequences for non-compliance with these rulings. However, it is important to note that any failure to adhere to the Commissioner’s opinion or the amended timelines could potentially result in tax liabilities or penalties as determined by the Commissioner of Taxation. The exact nature of these consequences would depend on the specific circumstances of non-compliance and would be subject to the relevant tax laws and administrative measures in place at the time of breach.