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 |
CR 2015/106 | Income tax and fringe benefits tax: use of the Mobilyser app report to calculate an income tax deduction or fringe benefits tax liability | The Ruling sets out the Commissioners position for individual taxpayers and employers who use the Mobilyser app report as set out within the Ruling. The Ruling applies from 10 November 2014 to 10 November 2019. |
CR 2015/107 | Income tax: EQT Group restructure – employee share schemes – treatment of shares or rights | The Ruling sets out the Commissioners position for employees of EQT Holdings Limited. The Ruling applies from 1 July 2015 to 30 June 2016. |
CR 2015/108 | Income tax: Macquarie Group Limited – Macquarie Group Capital Notes 2 | The Ruling sets out the Commissioners position for investors who acquired fully paid, unsecured, subordinated, mandatorily convertible notes issued by Macquarie Group Limited. The Ruling applies from 1 July 2015 to 30 June 2024. |
CR 2015/109 | Income tax: Alphabet Inc. – employee share schemes, scrip for scrip roll-over, Division 615 roll-over | The Ruling sets out the Commissioners position for employees of Google Inc. and its subsidiaries, Google Australia Pty Ltd and Google Payments Australia Pty Ltd. The Ruling applies from 1 July 2015 to 30 June 2016. |
CR 2015/110 | Income tax: The Village Building Co Limited - conversion of shares, variation of rights and selective capital reduction | The Ruling sets out the Commissioners position for holders of ordinary shares in The Village Building Co Limited. The Ruling applies from 1 July 2015 to 30 June 2016. |
CR 2015/111 | Fringe benefits tax: corporate clients of McMillan Shakespeare Limited and its subsidiaries (McMillan Shakespeare) who participate in McMillan Shakespeare’s bus travel benefit scheme | The Ruling sets out the Commissioners position for employers who are clients of McMillan Shakespeare Limited and its subsidiaries. The Ruling applies from the 16 December 2015. |
PR 2015/11 | Income tax: ATC Insurance Solutions – Professional Sports Person Personal Accident & Illness Insurance | The Ruling sets out the Commissioners position for individuals who participate in the scheme specified in the Ruling which involves the payment of insurance benefits under a Professional Sports Person Personal Accident and Illness Insurance policy for professional sports people, issued by ATC Insurance Solutions Pty Ltd. The Ruling applies from 1 July 2015. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
PR 2013/23 | Income tax: tax consequences for an investor in a Westpac Retirement Deposit | The Addendum amends PR 2013/23 to include a new Product Disclosure Statement and to reflect an amendment made to the Westpac Retirement Deposits. The Addendum applies on and from 18 December 2013. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued various rulings under the Taxation Administration Act 1953 to provide clarity and guidance on specific tax issues affecting individual taxpayers and corporate entities. These rulings aim to address specific concerns and ensure consistent interpretation and application of the law. For example, CR 2015/106 addresses the use of the Mobilyser app report to calculate income tax deductions or fringe benefits tax liabilities for individual taxpayers and employers, effective from 10 November 2014 to 10 November 2019. Similarly, CR 2015/107 and CR 2015/108 provide clarity on the tax treatment of employee share schemes for EQT Group and Macquarie Group Limited respectively, with application periods ranging from 1 July 2015 to 30 June 2024. These rulings, issued by the Commissioner, serve to enhance certainty and compliance within the tax system.
Scope and Application
The Commissioner of Taxation's rulings, as detailed in the Gazette, pertain to specific income tax and fringe benefits tax scenarios affecting particular entities and individuals. CR 2015/106 applies to individual taxpayers and employers who use the Mobilyser app report for calculating income tax deductions or fringe benefits tax liabilities, effective from 10 November 2014 to 10 November 2019. CR 2015/107 concerns employees of EQT Holdings Limited regarding their employee share schemes, with application from 1 July 2015 to 30 June 2016. CR 2015/108 addresses investors who acquired Macquarie Group Capital Notes 2, applicable from 1 July 2015 to 30 June 2024. CR 2015/109 involves employees of Google Inc. and its subsidiaries, and the ruling is effective from 1 July 2015 to 30 June 2016. CR 2015/110 pertains to holders of ordinary shares in The Village Building Co Limited, applicable from 1 July 2015 to 30 June 2016. CR 2015/111 focuses on employers who are clients of McMillan Shakespeare Limited and its subsidiaries, applying from 16 December 2015. PR 2015/11 applies to individuals participating in the Professional Sports Person Personal Accident and Illness Insurance scheme, effective from 1 July 2015. The Addendum to PR 2013/23, reflecting changes to the Westpac Retirement Deposits, applies from 18 December 2013. Each Ruling outlines the Commissioner's position on specific tax issues, providing clarity and guidance within the stipulated timeframes.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued several Rulings and an Addendum (collectively, "the Rulings") under section 170C of the Taxation Administration Act 1953. These Rulings provide guidance to taxpayers and employers on specific tax matters. For instance, CR 2015/106 (paragraph 1) addresses the use of the Mobilyser app report for calculating income tax deductions or fringe benefits tax liabilities for individual taxpayers and employers. Similarly, CR 2015/107 (paragraph 2) provides guidance on the tax treatment of shares or rights for employees of EQT Holdings Limited, while CR 2015/108 (paragraph 3) deals with the tax implications for investors who acquired Macquarie Group Capital Notes 2. These Rulings are designed to offer clarity and certainty to the affected parties by outlining the Commissioner’s position on these specific tax issues.
The Rulings impose various obligations on the entities they govern. For example, employers who participate in McMillan Shakespeare’s bus travel benefit scheme, as addressed in CR 2015/111 (paragraph 7), must ensure they comply with the tax obligations set out in the Ruling. Similarly, employees of EQT Holdings Limited and investors in Macquarie Group Capital Notes 2 must adhere to the specific tax treatments outlined in CR 2015/107 (paragraph 2) and CR 2015/108 (paragraph 3) respectively. The Rulings also clarify the tax consequences for individuals participating in specific insurance schemes, such as the Professional Sports Person Personal Accident and Illness Insurance policy addressed in PR 2015/11 (paragraph 9).
Breach of the provisions outlined in these Rulings can result in various civil or criminal consequences. For instance, if an employer fails to comply with the tax obligations set out in CR 2015/111 (paragraph 7), they may be subject to penalties under the Income Tax Assessment Act 1997. The penalties for non-compliance can include fines and interest charges on unpaid taxes. Similarly, failure to adhere to the tax treatments specified in CR 2015/107 (paragraph 2) and CR 2015/108 (paragraph 3) can result in penalties for underpayment of tax or other related offences. The maximum penalties for these offences can vary depending on the nature and severity of the breach, as outlined in the relevant sections of the Income Tax Assessment Act 1997. It is essential for the affected parties to understand and comply with these obligations to avoid potential penalties.