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 2015/11 | Income tax: exchange of units in the Bailador Trust for shares in Bailador Technology Investments Limited | The Ruling sets out the Commissioner’s position for holders of ordinary units in the Bailador Trust. The Ruling applies from 1 July 2014 to 30 June 2015. |
CR 2015/12 | Income tax: restructure of Bailador Siteminder Co‑Investment Trust | The Ruling sets out the Commissioner’s position for holders of ordinary units and sponsor units in the Bailador Siteminder Co‑Investment Trust. The Ruling applies from 1 July 2014 to 30 June 2015. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
TD 2007/18 | Income tax: consolidation: in applying the statutory cap in section 705-40 (tax cost setting amount for reset cost base assets held on revenue account) of the Income Tax Assessment Act 1997, does the definition of revenue asset in section 977-50 of that Act include any CGT asset, a hypothetical realisation of which would have an amount reflected in the joining entity’s taxable income (disregarding the single entity rule), otherwise than solely as a capital gain or capital loss? | The Addendum amends Taxation Determination TD 2007/18 to omit the reference to Subdivision 124-G of the Income Tax Assessment Act 1997 and to replace it with Division 615 as a result of legislative amendment. The Addendum applies on and from 10 May 2011. |
NOTICE OF ERRATA |
Ruling Number | Subject | Brief Description |
CR 2012/32 | Goods and services tax: GST treatment of Australian fees and charges imposed by NSW Councils for supplies in relation to building and property development applications and other related permits and approvals | The Erratum corrects referencing errors in Class Ruling CR 2013/32. The Erratum applies on and from 29 May 2013. |
CR 2015/10 | Income tax: provision of accommodation by Shell Korea Ltd to employees who are residents of Australia for tax purposes | The Erratum corrects the binding status from Appendix 1 onwards of Class Ruling CR 2015/10. The Erratum applies on and from 11 February 2015. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a series of notices regarding various rulings and amendments related to taxation law. These rulings and amendments aim to provide clarity and guidance on specific tax issues, ensuring compliance and consistency in the application of the law. The rulings cover topics such as the exchange of units in the Bailador Trust, the restructure of Bailador Siteminder Co-Investment Trust, the statutory cap on tax cost setting amounts for reset cost base assets, and the GST treatment of Australian fees and charges imposed by NSW Councils. Additionally, there are corrections and amendments to previous rulings to rectify referencing errors and adjust the binding status of certain provisions. These notices are issued to ensure that taxpayers and tax practitioners have access to the most current and accurate information regarding tax obligations and entitlements.
Scope and Application
The Commissioner of Taxation has issued several rulings and an addendum which provide specific guidance on various aspects of taxation law, affecting different taxpayers and transactions. Rulings CR 2015/11 and CR 2015/12 pertain to the income tax implications for holders of ordinary units in the Bailador Trust and Bailador Siteminder Co‑Investment Trust, respectively, for the period from 1 July 2014 to 30 June 2015. These rulings are targeted at individuals and entities holding these specific types of units, providing clarity on their tax obligations and rights in relation to the exchange of units for shares and the restructure of the investment trusts. Additionally, Taxation Determination TD 2007/18 has been amended through an addendum to reflect legislative changes concerning the definition of revenue assets for the purposes of applying the statutory cap in section 705-40 of the Income Tax Assessment Act 1997, effective from 10 May 2011. Further, two errata have been issued to correct referencing errors in Class Ruling CR 2013/32 concerning the GST treatment of fees imposed by NSW Councils for building and property development applications, effective from 29 May 2013, and to correct the binding status of Class Ruling CR 2015/10 regarding the income tax treatment of accommodation provided by Shell Korea Ltd to Australian tax residents, effective from 11 February 2015.
Key Provisions
The Commissioner of Taxation has issued several rulings and notices that clarify the interpretation and application of tax laws in specific circumstances. For example, CR 2015/11 provides the Commissioner's position on the tax treatment of exchanging units in the Bailador Trust for shares in Bailador Technology Investments Limited. This ruling applies to transactions occurring between 1 July 2014 and 30 June 2015. Similarly, CR 2015/12 addresses the tax implications for holders of ordinary and sponsor units in the Bailador Siteminder Co-Investment Trust for the same period. These rulings are crucial for taxpayers involved in these specific transactions, as they provide certainty regarding their tax obligations.
The obligations and requirements imposed by these rulings on taxpayers are significant. For instance, taxpayers exchanging units in the Bailador Trust must understand and comply with the tax implications as outlined in CR 2015/11. This includes accurately reporting any income, gains, or losses from these transactions. Similarly, holders of units in the Bailador Siteminder Co-Investment Trust need to adhere to the guidelines set out in CR 2015/12 when restructuring their investments. Failure to comply with these rulings can lead to incorrect tax reporting and potential penalties.
There are also penalties and consequences for non-compliance with these rulings. Although specific penalties are not detailed in the notices, general tax laws apply. For example, under the Income Tax Assessment Act 1997, taxpayers who fail to comply with tax obligations can face penalties. These can include fines and interest on any unpaid tax. In more severe cases, the Commissioner can refer matters to the Australian Taxation Office (ATO) for further investigation, which might lead to additional penalties or even criminal charges for serious non-compliance. The ATO can also pursue legal action to recover unpaid taxes and associated costs.
In addition to the rulings, the Commissioner has issued an addendum and an erratum to correct and update previous determinations. For example, TD 2007/18 has been amended to reflect legislative changes regarding the statutory cap on tax cost setting amounts. This addendum applies from 10 May 2011 and is essential for taxpayers to ensure they correctly apply the updated rules. Similarly, the erratum in CR 2012/32 corrects referencing errors, and the erratum in CR 2015/10 clarifies the binding status of the ruling. These amendments ensure that taxpayers have accurate and up-to-date information to comply with tax laws effectively.