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 |
TD 2014/1 | Income tax: is the ‘dividend access share’ arrangement of the type described in this Taxation Determination a scheme ‘by way of or in the nature of dividend stripping’ within the meaning of section 177E of Part IVA of the Income Tax Assessment Act 1936? | The Determination provides the opinion of the Commissioner about the dividend access share arrangement. When the final Determination is issued, it is proposed to apply it both before and after its date of issue. |
CR 2014/22 | Income tax: Australia and New Zealand Banking Group Limited – ANZ Capital Notes 2 | The Ruling sets out the opinion of the Commissioner for all investors who are allotted non‑cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured notes issued by Australia and New Zealand Banking Group Limited. The Ruling applies from 1 July 2013 to 30 June 2024. |
CR 2014/23 | Income tax: assessable income: payments received under the Western Australian Government Grandcarer Support Scheme | The Ruling sets out the opinion of the Commissioner for individuals who receive a payment under the Western Australian Government Grandcarer Support Scheme (the Scheme) administered by Wanslea Family Services. The Ruling applies from 26 November 2013. |
PR 2014/2 | Income tax: Challenger Care Annuity | The Ruling sets out the Commissioner’s opinion for all investors in a Challenger Care Annuity policy (Annuity) issued by Challenger Life Company Limited. The Ruling applies prospectively from 1 July 2013. |
PR 2014/3 | Income tax: TFS Sandalwood Project 2014 | The Ruling sets out the Commissioner’s opinion for all members of the TFS Sandalwood Project 2014. The Ruling applies prospectively from 26 February 2014, the date it is published. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
MT 2010/1 | Miscellaneous tax: restrictions on GST refunds under section 105-65 of Schedule 1 to the Taxation Administration Act 1953 | The Addendum amends Miscellaneous Taxation Ruling MT 2010/1 to reflect: - the Administrative Appeals Tribunal decision in Naidoo v. Commissioner of Taxation [2013] AATA 443, and
- amendments made by the Indirect Tax Laws Amendment (Assessment) Act 2012, which came into effect on 1 July 2012 and introduced a self-assessment regime for indirect taxes.
The Addendum also makes further minor amendments to MT 2010/1 and updates the references section. The Addendum applies on and from 26 February 2014. |
NOTICE OF ERRATUM |
Ruling Number | Subject | Brief Description |
CR 2014/16 | Income tax: Downer EDI Limited Long Term Incentive Plan | The Erratum amends Class Ruling CR 2014/16 to correct paragraph references in two paragraphs. The Erratum applies on and from 12 February 2014. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
GSTA TPP 012 | Goods and services tax: is a landlord who is renting furnished premises to tenants required to apportion the rent between the occupancy of the real property and the right to use the furnished items? | Withdrawn with effect from 26 February 2014. |
GSTA TPP 018 | Goods and services tax: can an interest charge be a change in consideration and therefore an adjustment event (as opposed to a financial supply)? | Withdrawn with effect from 26 February 2014. |
Overview
The Commissioner of Taxation has issued a series of Rulings and an Addendum, Errata, and Withdrawals related to various income tax and miscellaneous tax matters. These include Taxation Determination TD 2014/1, which seeks to clarify whether a 'dividend access share' arrangement is a scheme "by way of or in the nature of dividend stripping" under section 177E of Part IVA of the Income Tax Assessment Act 1936. Class Rulings CR 2014/22 and CR 2014/23 address the tax treatment of investments in ANZ Capital Notes 2 and payments received under the Western Australian Government Grandcarer Support Scheme, respectively. Public Rulings PR 2014/2 and PR 2014/3 concern the tax implications of a Challenger Care Annuity and the TFS Sandalwood Project 2014. Miscellaneous Taxation Ruling MT 2010/1 has been amended to reflect changes in law and tribunal decisions regarding restrictions on GST refunds. Additionally, there are Errata correcting previous Rulings and Withdrawals of certain previous Practical Tax Procedure Rulings. The Rulings and Addendum are issued by the Commissioner of Taxation and aim to provide clarity and guidance to taxpayers and practitioners on specific tax issues.
Scope and Application
The Commissioner of Taxation has issued various rulings and notifications regarding specific tax matters, impacting a range of entities and individuals. For example, Taxation Determination TD 2014/1 provides the Commissioner's opinion on whether certain dividend access share arrangements constitute a scheme for the purposes of section 177E of Part IVA of the Income Tax Assessment Act 1936. Class Ruling CR 2014/22 addresses the tax treatment of investments in ANZ Capital Notes 2, applying from 1 July 2013 to 30 June 2024. Similarly, CR 2014/23 outlines the tax implications for recipients of payments under the Western Australian Government Grandcarer Support Scheme, applicable from 26 November 2013. Prospective Rulings PR 2014/2 and PR 2014/3 provide opinions on the tax treatment of investments in Challenger Care Annuity policies and the TFS Sandalwood Project 2014, respectively, both applying from their publication dates of 1 July 2013 and 26 February 2014. Additionally, Miscellaneous Taxation Ruling MT 2010/1 has been amended to reflect certain decisions and legislative changes, with the Addendum applying from 26 February 2014. Class Ruling CR 2014/16 has been corrected through an Erratum applicable from 12 February 2014. Lastly, certain Goods and Services Tax Technical Provisions have been withdrawn with effect from 26 February 2014.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued various notices regarding Rulings and Addendums under Australian taxation law. For instance, TD 2014/1 (paragraph 1) provides the Commissioner's opinion on whether a 'dividend access share' arrangement qualifies as a scheme 'by way of or in the nature of dividend stripping' within the meaning of section 177E of Part IVA of the Income Tax Assessment Act 1936. CR 2014/22 (paragraph 2) outlines the Commissioner's opinion for all investors in non-cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured notes issued by Australia and New Zealand Banking Group Limited, applying from 1 July 2013 to 30 June 2024. CR 2014/23 (paragraph 3) provides the Commissioner's opinion for individuals who receive payments under the Western Australian Government Grandcarer Support Scheme, effective from 26 November 2013. PR 2014/2 (paragraph 4) and PR 2014/3 (paragraph 5) set out the Commissioner's opinion for all investors in a Challenger Care Annuity policy and all members of the TFS Sandalwood Project 2014, respectively, both applying prospectively from their respective dates.
The obligations and requirements imposed by these rulings include providing clear guidance on tax treatments for specific financial arrangements and schemes, ensuring taxpayers are aware of their tax obligations in relation to these arrangements. For example, CR 2014/22 (paragraph 2) requires investors in ANZ Capital Notes 2 to adhere to the outlined tax treatment over the specified period. Similarly, CR 2014/23 (paragraph 3) mandates that individuals receiving payments under the Western Australian Government Grandcarer Support Scheme must follow the tax implications as determined by the Commissioner. These rulings are designed to offer certainty and compliance assistance to taxpayers.
In terms of penalties and consequences for breaches, the rulings themselves do not explicitly detail specific penalties. However, the broader Australian tax laws under which these rulings are issued do provide for penalties. For instance, under the Income Tax Assessment Act 1936, penalties can include fines up to a significant percentage of the tax shortfall, as well as additional interest on unpaid tax. Criminal penalties may also apply for more serious breaches, including imprisonment. The specific penalties would depend on the nature and extent of the breach, as well as the provisions of the relevant tax laws.
Additionally, MT 2010/1 (paragraph 6) amends the Miscellaneous Taxation Ruling to reflect the Administrative Appeals Tribunal decision and legislative changes, impacting the restrictions on GST refunds under section 105-65 of Schedule 1 to the Taxation Administration Act 1953. This Addendum applies from 26 February 2014. Furthermore, an Erratum to CR 2014/16 (paragraph 7) corrects paragraph references and applies from 12 February 2014, ensuring accuracy in the ruling. Lastly, GSTA TPP 012 and GSTA TPP 018 (paragraph 8) were withdrawn effective from 26 February 2014, reflecting changes in the application of GST to landlord-tenant arrangements and interest charges.