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 2015/79 | Income tax: SKILLED Group Limited Scheme of Arrangement and payment of Final Dividend and Special Dividend | The Ruling sets out the Commissioner’s position for the holders of ordinary shares in SKILLED Group Limited. The Ruling applies from 1 July 2015 to 30 June 2016. |
CR 2015/80 | Fringe benefits tax: use of an E‑stralian electric bicycle (e‑bike) by an employee | The Ruling sets out the Commissioner’s position for employers who provide the use of an E‑stralian electric bicycle (e‑bike) to an employee. The Ruling applies from 1 April 2015 to 31 March 2020. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
MT 2012/3 | Administrative penalties: voluntary disclosures | The Addendum amends Miscellaneous Taxation Ruling MT 2012/3 to provide further clarification and guidance, including: - whether Annual Compliance Arrangements and Advance Pricing Arrangements are ‘examinations of an entity’s affairs’;
- whether an entity will be taken to have been told that an audit is to be conducted where there is a delay between a risk review being finalised and notification of an audit; and
- to provide another example of when the Commissioner will generally exercise the discretion in subsection 284-225(5) of Schedule 1 to the Taxation Administration Act 1953.
The Addendum applies on and from 14 October 2015. |
Overview
The Taxation Rulings and the Addendum to an earlier Miscellaneous Taxation Ruling, released by the Commissioner of Taxation, are intended to provide clarity and guidance on specific tax-related issues for certain periods. The first Ruling, CR 2015/79, addresses the tax implications for holders of ordinary shares in SKILLED Group Limited, particularly in relation to a scheme of arrangement and the payment of a final dividend and special dividend, and applies from 1 July 2015 to 30 June 2016. The second Ruling, CR 2015/80, concerns the fringe benefits tax implications for employers who provide the use of an E-stralian electric bicycle (e-bike) to an employee, and is applicable from 1 April 2015 to 31 March 2020. Additionally, the Addendum to MT 2012/3, which provides clarification on administrative penalties, specifically concerning voluntary disclosures, was updated to offer further guidance on various issues, including whether Annual Compliance Arrangements and Advance Pricing Arrangements constitute 'examinations of an entity’s affairs', and applies from 14 October 2015. These rulings were introduced to ensure taxpayers and employers have clear guidance on the tax treatment of specific arrangements, thereby facilitating compliance with the relevant tax laws.
Scope and Application
The Commissioner of Taxation has issued rulings and an addendum under the Taxation Administration Act 1953, providing clarification and guidance to taxpayers on various issues. Ruling CR 2015/79 concerns the taxation treatment for holders of ordinary shares in SKILLED Group Limited, specifically relating to a scheme of arrangement and the payment of a final dividend and special dividend. This ruling applies to the period from 1 July 2015 to 30 June 2016, providing certainty for those involved in the specified transactions. Similarly, Ruling CR 2015/80 outlines the Commissioner’s position on the fringe benefits tax implications for employers who provide the use of an E-stralian electric bicycle to employees, effective from 1 April 2015 to 31 March 2020. The Addendum to MT 2012/3, which pertains to administrative penalties for voluntary disclosures, amends the existing ruling to clarify certain aspects of the Commissioner’s discretion in imposing penalties, applying from 14 October 2015. These rulings and the addendum are aimed at ensuring taxpayers understand their obligations and rights under the relevant legislation.
Key Provisions
The main operative sections of the gazetted rulings and addendum revolve around specific tax scenarios and penalties. Ruling CR 2015/79 (paragraph 1) details the Commissioner's position on the income tax implications for holders of ordinary shares in SKILLED Group Limited, particularly in relation to a Scheme of Arrangement and the payment of a Final Dividend and Special Dividend. This ruling is applicable from 1 July 2015 to 30 June 2016 (paragraph 1). Similarly, Ruling CR 2015/80 (paragraph 2) provides guidance on the fringe benefits tax consequences for employers who provide the use of an E-stralian electric bicycle (e-bike) to an employee, with its application spanning from 1 April 2015 to 31 March 2020 (paragraph 2). The Addendum to Miscellaneous Taxation Ruling MT 2012/3 (paragraph 3) clarifies certain aspects of administrative penalties, particularly voluntary disclosures, and is applicable from 14 October 2015 (paragraph 3).
The obligations and requirements imposed by these rulings and the addendum are primarily informational and advisory in nature. For instance, holders of ordinary shares in SKILLED Group Limited must understand the tax implications of the scheme of arrangement and the dividends as outlined in Ruling CR 2015/79 (paragraph 1). Employers who provide employees with the use of an E-stralian electric bicycle need to be aware of the fringe benefits tax treatment as stipulated in Ruling CR 2015/80 (paragraph 2). The Addendum to MT 2012/3 (paragraph 3) provides further clarity on administrative penalties and voluntary disclosures, which is crucial for entities engaging in such activities. All parties must ensure compliance with the specific timeframes outlined in the rulings and addendum to avoid any potential tax implications or penalties.
The gazetted documents also outline the potential consequences for non-compliance. Although the rulings themselves do not explicitly state penalties, breaches of tax laws can result in a variety of civil and criminal penalties under the relevant tax statutes. For instance, under the Taxation Administration Act 1953, penalties for non-compliance can include fines, interest on unpaid taxes, and in severe cases, criminal prosecution. The specific penalties will depend on the nature and severity of the breach, but entities and individuals are strongly advised to adhere to the guidance provided in these rulings and the addendum to avoid any adverse tax consequences.