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 2014/41 | Income tax: Aviva Corporation Limited: return of capital | The Ruling is an expression of the Commissioner’s opinion for the holders of ordinary shares in Aviva Corporation Limited. The Ruling applies from 1 July 2013 to 30 June 2014. |
CR 2014/42 | Income tax: scrip for scrip: exchange of shares in Envestra for APA stapled securities | The Ruling is an expression of the Commissioner’s opinion for ordinary shareholders of Envestra. The Ruling applies from 1 July 2013 to 30 June 2015. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
CR 2014/26 | Fringe benefits tax: employer clients of Universal Gift Card Pty Ltd who make use of Universal Gift Card Pty Ltd’s Minor expenses card | The Addendum amends Class Ruling CR 2014/26 to reflect changes in the amount that is preloaded on to the Minor expenses card and the monthly limit on the use of the Minor expenses card. The Addendum applies on and from 12 March 2014. |
NOTICE OF ERRATUM |
Ruling Number | Subject | Brief Description |
GSTR 2005/6 | Goods and services tax: the scope of subsection 38-190(3) and its application to supplies of things (other than goods or real property) made to non-residents that are GST-free under item 2 in the table in subsection 38‑190(1) of the A New Tax System (Goods and Services Tax) Act 1999 | The Erratum corrects Goods and Services Tax Ruling GSTR 2005/6 to correct a typographical error. The Erratum applies on and from 3 April 2013. |
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NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
GSTA TPP 022 | Goods and services tax: is the fee for services provided by an entity to a retail outlet for the administration of an arrangement involving section 100‑5 vouchers, commonly referred to as face value vouchers (FVVs), subject to GST? | Withdrawn with effect from 7 May 2014. |
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Overview
The Commissioner of Taxation, Chris Jordan, has issued several rulings under the A New Tax System (Goods and Services Tax) Act 1999 and the Income Tax Assessment Act 1997 to provide clarity and guidance on specific tax issues. These rulings aim to ensure taxpayers and their advisers have a clear understanding of the tax treatment of certain transactions and arrangements. The rulings address various topics such as the return of capital for shareholders in Aviva Corporation Limited, the exchange of shares in Envestra for APA stapled securities, the fringe benefits tax implications for employer clients of Universal Gift Card Pty Ltd, and the scope of GST-free supplies to non-residents. Additionally, an addendum has been issued to update a previous ruling on the preloaded amount and monthly limit for the Minor expenses card, while an erratum corrects a typographical error in an existing ruling. Finally, a ruling has been withdrawn to reflect the cessation of a particular service arrangement. These rulings collectively serve to bridge any potential gaps in understanding and application of the tax laws.
Scope and Application
The Commissioner of Taxation has issued several rulings and notices that provide clarification and guidance on specific tax matters within the Australian jurisdiction. Ruling CR 2014/41 pertains to income tax for holders of ordinary shares in Aviva Corporation Limited, offering the Commissioner’s opinion on the return of capital and is applicable from 1 July 2013 to 30 June 2014. Similarly, Ruling CR 2014/42 deals with the income tax implications for ordinary shareholders of Envestra concerning the exchange of shares for APA stapled securities, effective from 1 July 2013 to 30 June 2015. An addendum to Ruling CR 2014/26 modifies the fringe benefits tax considerations for employer clients of Universal Gift Card Pty Ltd who use the Minor expenses card, with the changes taking effect from 12 March 2014. Additionally, an erratum corrects a typographical error in Goods and Services Tax Ruling GSTR 2005/6, impacting the scope of subsection 38-190(3) and its application to non-resident supplies, effective from 3 April 2013. Lastly, the withdrawal of GSTA TPP 022, which previously addressed whether fees for services related to section 100-5 vouchers are subject to GST, came into effect on 7 May 2014.
Key Provisions
The Commissioner of Taxation has issued several rulings and notifications that outline specific tax obligations and clarifications. Ruling CR 2014/41 pertains to income tax concerning Aviva Corporation Limited, expressing the Commissioner's opinion on the return of capital for ordinary shareholders. This ruling is effective from 1 July 2013 to 30 June 2014. Similarly, Ruling CR 2014/42 addresses the income tax implications of exchanging shares in Envestra for APA stapled securities for ordinary shareholders, with its application period running from 1 July 2013 to 30 June 2015.
These rulings impose specific obligations on the taxpayers affected by them. For instance, shareholders of Aviva Corporation Limited must adhere to the tax treatment outlined in Ruling CR 2014/41, ensuring they report their income tax correctly for the specified period. Similarly, shareholders exchanging shares in Envestra for APA stapled securities must follow the guidelines set out in Ruling CR 2014/42 to ensure compliance with income tax obligations. The Addendum to Ruling CR 2014/26 modifies the fringe benefits tax implications for employer clients of Universal Gift Card Pty Ltd, specifically concerning the use of Minor expenses cards, effective from 12 March 2014. Additionally, the Erratum to GSTR 2005/6 corrects a typographical error regarding the application of the GST to supplies made to non-residents, effective from 3 April 2013.
Failure to comply with these rulings and the corrected erratum could result in significant consequences. While the document does not specify penalties for breaches of these rulings, general tax laws provide for both civil and criminal penalties. For civil penalties, the Commissioner may impose a penalty of up to 75% of the tax or other amount that remains unpaid, while criminal penalties can include fines of up to $132,000 for individuals and $660,000 for corporations, in addition to potential imprisonment. The withdrawal of GSTA TPP 022, effective from 7 May 2014, indicates that the previous ruling on GST for face value vouchers is no longer applicable, which may require taxpayers to adjust their tax reporting and compliance strategies accordingly.