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.
Ruling Number | Subject | Brief Description |
CR 2013/33 | Income tax: treatment of transfer payments to employees of Eraring Energy following the sale of business to a private sector entity | The Ruling sets out the Commissioner’s opinion for all business sale divisions employees of Eraring Energy. The Ruling applies from 5 June 2013 to 30 June 2014. |
CR 2013/34 | Income tax: business restructure and proposed capital distribution: News Corporation | The Ruling sets out the Commissioner’s opinion for holders of Class A common stock and/or Class B common voting stock in News Corporation and holders of Australian Securities Exchange listed CHESS Depository Interests in News Corporation. The Ruling applies from 1 June 2013 to 30 June 2014. |
CR 2013/35 | Income tax: research and development tax incentive: membership funding for the ACA Low Emissions Technology Program | The Ruling sets out the Commissioner’s opinion for ‘R&D entities’, as defined by section 355‑35 of the Income Tax Assessment Act 1997, who are liable for levy contributions under the ACA Low Emissions Technologies Program The Ruling applies from 1 July 2011 to 30 June 2017. |
CR 2013/36 | Fringe benefits tax: employer clients of the Commonwealth Bank of Australia (CBA) who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 and who make use of the Bank’s prepaid Employee Benefits Card facility | The Ruling sets out the Commissioner’s opinion for those employers who are subject to the provisions of section 57A of the Fringe Benefits Tax Assessment Act 1986 who: - enter into an arrangement with the CBA to provide the Bank’s prepaid Visa or Mastercard Employee Benefits Card (EBC) facility to their employees or associates of their employees; or
- enter into an arrangement with a salary packaging provider to administer salary packaging on its behalf, with the salary packaging provider (acting on the employer’s behalf) entering into an arrangement with the CBA to provide the EBC facility to the employer’s employees or their associates.
The Ruling applies from 1 April 2013. |
CR 2013/37 | Income tax: demerger of Duketon Mining Limited by South Boulder Mines Ltd | The Ruling sets out the Commissioner’s opinion for the shareholders of South Boulder Mines Ltd. The Ruling applies from 1 July 2012 to 30 June 2013. |
CR 2013/38 | Income tax: Parks Victoria Voluntary Departure Program 2012‑13/2013‑14 Early Retirement Scheme | The Ruling sets out the Commissioner’s opinion for employees of Parks Victoria. The Ruling applies from 5 June 2013 to 30 June 2014. |
CR 2013/39 | Goods and services tax: the GST treatment of fees and charges imposed by NSW councils in relation to water, sewerage and drainage supplies | The Ruling sets out the Commissioner’s opinion for all councils that are members of the Local Government and Shires Association of New South Wales. The Ruling applies from 1 July 2013 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. |
Ruling Number | Subject | Brief Description |
CR 2013/27 | Income tax: treatment of transfer payments to employees of Delta Electricity following the sale of certain business divisions to a private sector entity | The Addendum amends Class Ruling CR 2013/27 to clarify employment conditions and to remove an incorrect reference. The Addendum applies on and from 1 May 2013. |
Ruling Number | Subject | Brief Description |
GSTA TPP 024W | Goods and services tax: is an offer to renew a membership or contract an invoice that triggers attribution under subsection 29-5(1) of the GST Act? | Goods and Services Tax Advice GSTA TPP 024 is withdrawn with effect from today. |
GSTA TPP 031W | Goods and services tax: who is entitled to claim the input tax credit on an acquisition where the recipient shown on the tax invoice is a member of a GST group? | Goods and Services Tax Advice GSTA TPP 031 is withdrawn with effect from today. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a series of rulings under the authority of various pieces of Australian legislation, most prominently the Income Tax Assessment Act 1997 and the Fringe Benefits Tax Assessment Act 1986. These rulings aim to provide clarity and guidance on specific tax issues arising from business transactions, employee benefits, and other tax-related matters. For instance, Ruling CR 2013/33 addresses the income tax treatment of transfer payments to employees of Eraring Energy following a business sale, while Ruling CR 2013/36 deals with fringe benefits tax implications for employers using the Commonwealth Bank of Australia's prepaid Employee Benefits Card facility. These rulings are intended to ensure that taxpayers and their advisers can confidently apply the relevant tax provisions in the context of the specified transactions or arrangements, thereby facilitating compliance with Australian tax laws.
Scope and Application
The Commissioner of Taxation has issued several rulings and notices impacting various entities and transactions within Australia, providing clarity on tax obligations and treatments under specific circumstances. CR 2013/33 addresses income tax treatment for transfer payments to employees of Eraring Energy following its sale to a private entity, applicable from 5 June 2013 to 30 June 2014. Similarly, CR 2013/34 outlines the Commissioner’s opinion on the income tax implications for News Corporation shareholders and those holding CHESS Depository Interests, effective from 1 June 2013 to 30 June 2014. CR 2013/35 pertains to the research and development tax incentive for entities funding the ACA Low Emissions Technology Program, applicable from 1 July 2011 to 30 June 2017. CR 2013/36 focuses on fringe benefits tax for employers using the Commonwealth Bank of Australia’s prepaid Employee Benefits Card facility, effective from 1 April 2013. CR 2013/37 and CR 2013/38 respectively provide income tax guidance for shareholders of South Boulder Mines Ltd following a demerger and for employees of Parks Victoria under the Voluntary Departure Program, both applying from 1 July 2012 to 30 June 2013 and 5 June 2013 to 30 June 2014. CR 2013/39 deals with the GST treatment of fees and charges imposed by NSW councils in relation to water, sewerage, and drainage supplies, applicable to all entities within the specified class who entered into the scheme during the term of the Ruling from 1 July 2013. Additionally, an addendum to CR 2013/27 clarifies employment conditions for Delta Electricity employees, effective from 1 May 2013, and certain Goods and Services Tax Advice notices, GSTA TPP 024 and GSTA TPP 031, have been withdrawn from the date of the notice.
Key Provisions
The Commissioner of Taxation has issued several Rulings and an Addendum, along with two withdrawn Goods and Services Tax Advices, which provide guidance on various tax matters. CR 2013/33 (paragraph 2) outlines the treatment of transfer payments to employees of Eraring Energy following the sale of certain business divisions to a private sector entity. CR 2013/34 (paragraph 3) addresses the income tax implications for holders of Class A and Class B common stock and Australian Securities Exchange listed CHESS Depository Interests in News Corporation in relation to a proposed business restructure and capital distribution. CR 2013/35 (paragraph 4) provides guidance on the research and development tax incentive for entities that are liable for levy contributions under the ACA Low Emissions Technologies Program. CR 2013/36 (paragraph 5) concerns the fringe benefits tax treatment for employer clients of the Commonwealth Bank of Australia who use the Bank's prepaid Employee Benefits Card facility. CR 2013/37 (paragraph 6) addresses the income tax consequences for shareholders of South Boulder Mines Ltd in relation to the demerger from Duketon Mining Limited. CR 2013/38 (paragraph 7) provides guidance on the income tax treatment for employees of Parks Victoria who participate in the Voluntary Departure Program 2012-13/2013-14 Early Retirement Scheme. CR 2013/39 (paragraph 8) outlines the goods and services tax treatment for fees and charges imposed by New South Wales councils in relation to water, sewerage and drainage supplies.
These Rulings impose obligations on the specified entities and individuals to adhere to the tax treatment outlined in the Commissioner's opinion. For instance, entities that fall under CR 2013/33 must ensure that the transfer payments to employees are taxed in accordance with the Ruling. Similarly, those affected by CR 2013/34 must consider the income tax implications of the proposed business restructure and capital distribution. Entities liable for levy contributions under the ACA Low Emissions Technologies Program must also comply with the guidance provided in CR 2013/35. Employers using the Commonwealth Bank of Australia's prepaid Employee Benefits Card facility must follow the fringe benefits tax treatment specified in CR 2013/36. Shareholders of South Boulder Mines Ltd must consider the income tax consequences of the demerger as per CR 2013/37. Lastly, employees of Parks Victoria participating in the Early Retirement Scheme must adhere to the income tax treatment outlined in CR 2013/38. New South Wales councils imposing fees and charges for water, sewerage, and drainage supplies must comply with the GST treatment specified in CR 2013/39.
Failure to comply with the obligations set out in these Rulings may result in civil or criminal penalties, depending on the nature and extent of the breach. For example, under the Income Tax Assessment Act 1997, penalties may be imposed for understating taxable income, failing to lodge a tax return, or providing false or misleading statements. The penalties can range from fines to imprisonment, depending on the severity of the breach. Similarly, the Fringe Benefits Tax Assessment Act 1986 imposes penalties for non-compliance with fringe benefits tax obligations. In the case of goods and services tax, the A New Tax System (Goods and Services Tax) Act 1999 sets out various penalties for non-compliance, including fines and imprisonment for serious or repeated offences. The specific penalties and consequences for breach are detailed in the relevant Acts and should be considered when complying with the obligations set out in these Rulings.