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 |
TR 2017/4 | Income tax: taxation of rights and retail premiums under renounceable rights offers where shares held on capital account | The Ruling sets out the Commissioner’s position on taxation of rights and retail premiums under renounceable rights offers where shares held on capital account. This Ruling applies to years of income both before and after its date of issue. |
TD 2017/19 | Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2017 18 income year? | The Determination sets out the Commissioner’s position on reasonable travel and overtime meal allowance expense amounts for the 2017/18 income year. The Determination applies to the
2017-18 income year only. |
CR 2017/40 | Fringe benefits tax: employer clients of PBI Benefits Solutions Pty Ltd who are subject to the provisions of section 57A or 65J of the Fringe Benefits Tax Assessment Act 1986 whose employees make use of a PBI Solutions Everyday Purchases Card facility | The Ruling sets out the Commissioners position on employers, who are subject to the provisions of section 57A or section 65J of the FBTAA whose employees make use of a PBI Solutions Everyday Purchases Card facility. The Ruling applies from 1 April 2017. |
CR 2017/41 | Fringe benefits tax: employer clients of Smartgroup Corporation Ltd who are subject to the provisions of section 57A or 65J of the Fringe Benefits Tax Assessment Act 1986 that make use of the Smartgroup Everyday Purchases Card facility | The Ruling sets out the Commissioners position on employers, who are subject to the provisions of section 57A or section 65J of the FBTAA that make use of the Smartgroup Everyday Purchases Card facility. The Ruling applies from 1 April 2017. |
CR 2017/42 | Fuel tax credits: clients of Navman Wireless Australia Pty Ltd who use the GPS Data Report generated by FTC Manager for calculating kilometres travelled and the hours used by auxiliary equipment in or on a vehicle as a record for fuel tax credit purposes | The Ruling sets out the Commissioners position on FTC Manager clients of Navman Wireless Australia Pty Ltd who are registered for goods and services tax and who use the measurements from the ‘GPS Data Reports’ for apportioning fuel usage between activities in calculating the extent of their entitlement for fuel tax credits. This Ruling applies from 28 April 2017 to 30 June 2020. |
PR 2017/8 | Income tax: tax consequences of investing in the Macquarie Torque Swap | The Ruling sets out the Commissioners position on the tax consequences of investing in the Macquarie Torque Swap. This Product Ruling applies prospectively from 5 July 2017, the date it is published. It therefore applies only to the specified class of entities that enter into the scheme from 5 July 2017 until 30 June 2020, being its period of application. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
TR 97/25 | Income tax: property development: deduction for capital expenditure on construction of income producing capital works, including buildings and structural improvements | It amends Taxation Ruling TR 97/25 to include ATO Interpretative Decisions ATO ID 2010/41 and ATO ID 2002/626 about farm accommodation expenditure exclusion. The Addendum applies to years commencing both before and after its date of issue. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a series of rulings and determinations to clarify specific tax issues and provide guidance on various tax matters. Among these, TR 2017/4 addresses the taxation of rights and retail premiums under renounceable rights offers where shares are held on a capital account, applying to both past and future years of income. TD 2017/19 specifies the reasonable travel and overtime meal allowance expense amounts for the 2017/18 income year, while CR 2017/40, CR 2017/41, and CR 2017/42 provide clarifications on fringe benefits tax for certain employer clients using specific card facilities. PR 2017/8 deals with the tax consequences of investing in the Macquarie Torque Swap, applying to entities entering the scheme from 5 July 2017 until 30 June 2020. Additionally, an addendum to TR 97/25 has been issued to incorporate relevant ATO interpretative decisions concerning deductions for capital expenditure on income-producing capital works. These rulings and determinations aim to ensure clarity and compliance in the application of tax laws.
Scope and Application
The Commissioner of Taxation has issued several rulings and determinations that provide clarification on specific tax matters, applying to various entities and individuals. For instance, TR 2017/4 outlines the taxation of rights and retail premiums under renounceable rights offers where shares are held on a capital account, and this applies to income years both before and after the ruling's issuance. Similarly, TD 2017/19 provides specific details about the reasonable travel and overtime meal allowance expense amounts for the 2017/18 income year, applicable only for that particular year. Rulings such as CR 2017/40 and CR 2017/41 concern employers subject to certain sections of the Fringe Benefits Tax Assessment Act 1986, applying from 1 April 2017, while CR 2017/42 deals with fuel tax credits for clients of Navman Wireless Australia Pty Ltd, applicable from 28 April 2017 to 30 June 2020. PR 2017/8 addresses the tax consequences of investing in the Macquarie Torque Swap, applying prospectively from 5 July 2017 until 30 June 2020. Additionally, an addendum to TR 97/25 amends the ruling to include specific ATO Interpretative Decisions, applicable to years commencing both before and after the date of issue. These rulings and determinations serve to clarify and guide taxpayers on specific tax matters within the framework of Australian tax legislation.
Key Provisions
The key operative sections in these rulings and determinations pertain to specific tax scenarios and provide detailed explanations of the Commissioner of Taxation’s position. For instance, TR 2017/4 (section 1) addresses the taxation of rights and retail premiums under renounceable rights offers where shares are held on capital account. This ruling is applicable to years of income both before and after its issuance. Similarly, TD 2017/19 (section 1) outlines the reasonable travel and overtime meal allowance expense amounts for the 2017/18 income year, applicable only to that specific income year.
These rulings and determinations impose specific obligations on taxpayers and employers, requiring them to adhere to the Commissioner’s interpretations when dealing with the specified tax scenarios. For example, CR 2017/40 and CR 2017/41 (sections 1) mandate that employers who are subject to certain sections of the Fringe Benefits Tax Assessment Act 1986 and who use PBI Solutions Everyday Purchases Card or Smartgroup Everyday Purchases Card facilities must comply with the specified provisions. Similarly, CR 2017/42 (section 1) requires clients of Navman Wireless Australia Pty Ltd who use GPS Data Reports for fuel tax credit calculations to follow the guidelines provided.
Breach of the obligations and requirements set out in these rulings and determinations can result in various civil and criminal consequences. While the specific penalties are not detailed within the text provided, it is known that failure to comply with tax rulings and determinations can lead to assessments of additional tax, penalties, and interest. In more serious cases, it may also result in criminal charges, especially if the breach is deemed to be willful or involves significant tax evasion. The maximum penalties can vary widely depending on the nature and extent of the breach, but can include substantial fines and, in extreme cases, imprisonment.