The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from ato.gov.au/law.
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
TD 2019/13 | Income tax: what is an ‘employee share trust’? | The Ruling sets out the Commissioner’s position on what an employee share trust is. The Ruling applies before and after date of issue. |
GSTR 2019/1 | Goods and services tax: supply of anything other than goods or real property connected with the indirect tax zone (Australia) | The Ruling sets out the Commissioner’s position when a supply of anything other than goods or real property (an intangible) is connected with the indirect tax zone under the A New Tax System (GST) Act 1999. The Ruling applies before and after date of issue. |
CR 2019/78 | Quiktrak GPS tracking system – use for FBT car logbook records and odometer records | The Ruling sets out when the Quiktrak GPS Tracking System can be utilised to reduce the operating costs in both a logbook and non‑logbook year of tax for the purpose of calculating the taxable value of a car fringe benefit using the cost basis method. The Ruling applies from 1 April 2019. |
CR 2019/79 | Goulburn-Murray Rural Water Corporation – early retirement scheme 2019 | The Ruling sets out tax consequences of an early retirement scheme implemented by the Goulburn-Murray Rural Water Corporation. The Ruling applies from 11 December 2019. |
CR 2019/80 | AXA Australia Employers – AXA SA 2019 Classic Plan share offer for Australian employees | The Ruling sets out tax consequences of the AXA SA 2019 Classic Plan share offer to their Australian employees. The Ruling applies from 1 July 2019. |
CR 2019/81 | AXA Australia Employers – AXA SA 2019 Leveraged Plan share offer for Australian employees | The Ruling sets out the tax consequences of the AXA SA 2019 Leveraged Plan share offer to their Australian employees. The Ruling applies from 1 July 2019. |
CR 2019/82 | Fairbairn Irrigation Network Limited – receipt of shares | The Ruling sets out the income tax consequences for residents of Australia who received ordinary shares in Fairbairn Irrigation Network Limited. The Ruling applies from 1 July 2018. |
CR 2019/83 | Pacific Energy Limited – Scheme of Arrangement and Special Dividend | The Ruling sets out the tax consequences for shareholders of Pacific Energy Limited who sold their Pacific shares pursuant to the scheme of arrangement which was initially announced on 24 July 2019. The Ruling applies from 1 July 2019. |
CR 2019/84 | Treatment of compensation payments received under the Fisheries Act 1995 (Vic) relating to the removal of commercial net fishing from the Gippsland Lakes | The Ruling sets out the tax consequences of receiving compensation under the Fisheries Act 1995 (Vic) for the cancellation of a Gippsland Lakes Fishery Access Licence. The Ruling applies from 1 April 2020. |
NOTICE OF ADDENDUM |
Ruling number | Subject | Brief description |
TD 2017/26 | Income tax: employee share schemes – when a dividend equivalent payment is assessable to an employee as remuneration | The Addendum amends Taxation Determination TD 2017/26 to clarify its interaction with the employee share trust requirements in subsection 130‑85(4) of the Income Tax Assessment Act 1997 and the associated Taxation Determination TD 2019/13 Income tax: what is an ‘employee share trust’? The Addendum applies on and from 1 January 2018. |
Overview
The Commissioner of Taxation has issued a series of rulings under the A New Tax System (Goods and Services Tax) Act 1999 and the Income Tax Assessment Act 1997, providing clarity on various tax matters. These rulings were enacted to address specific issues and provide guidance to taxpayers and tax practitioners. The rulings cover topics such as the definition and tax treatment of employee share trusts, the supply of intangibles in the context of GST, the use of GPS tracking systems for fringe benefits tax calculations, and the tax consequences of various corporate schemes and share offers. These rulings aim to ensure consistent application of the tax law and to provide certainty for taxpayers dealing with complex or novel situations. The Australian Parliament enacted these Acts to facilitate the administration of taxes and to provide a framework for interpreting and applying tax laws.
Scope and Application
The Commissioner of Taxation, Chris Jordan, has issued a series of rulings under the relevant Australian tax laws, providing guidance on various specific tax issues and transactions. These rulings apply to individuals and entities engaged in the described activities or transactions, and cover both income tax and goods and services tax (GST). The rulings are applicable regardless of the date of issue, unless otherwise specified, and are intended to clarify the Commissioner's position on particular tax matters. The scope of these rulings is national, applying across Australia, as they are issued under Commonwealth legislation. Notably, the rulings do not include any stated exclusions or exemptions, and it is presumed that they apply to all relevant taxpayers unless otherwise specified in subordinate instruments. The rulings are intended to assist taxpayers in understanding their obligations and can be accessed via the Australian Taxation Office's website.
Key Provisions
The Commissioner of Taxation has issued several rulings and an addendum that clarify specific aspects of tax law for both individuals and corporations. For instance, Ruling TD 2019/13 (section 130-85 of the Income Tax Assessment Act 1997) defines what constitutes an 'employee share trust', which is essential for understanding the tax implications of such trusts. Another ruling, GSTR 2019/1, pertains to the supply of intangibles within the indirect tax zone under the A New Tax System (GST) Act 1999, providing clarity on the tax treatment of these supplies. CR 2019/78 specifies when the Quiktrak GPS Tracking System can be used to determine the taxable value of a car fringe benefit, effective from 1 April 2019.
These rulings impose specific obligations on taxpayers, such as accurately identifying and reporting employee share trusts, correctly classifying supplies of intangibles for GST purposes, and utilising approved methods for calculating car fringe benefits. For example, under TD 2019/13, taxpayers must ensure that any employee share trusts are correctly structured and reported to avoid potential tax liabilities. Similarly, under GSTR 2019/1, businesses must be vigilant in classifying their transactions to ensure compliance with GST regulations.
Failure to comply with these rulings can lead to various consequences, including fines and penalties. For instance, incorrect classification of supplies under GST can result in penalties under the A New Tax System (GST) Act 1999, which can be severe depending on the level of non-compliance. Under section 168-15 of the A New Tax System (GST) Act 1999, penalties can include fines up to 25% of the GST evaded, alongside additional civil and criminal penalties for deliberate or reckless behaviour. Similarly, inaccurate reporting of employee share trusts under section 130-85 of the Income Tax Assessment Act 1997 can result in reassessments, penalties, and interest on unpaid taxes.