COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from http://ato.gov.au/law.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
TD 2017/12 | Income tax: capital gains: what is the date of acquisition (or disposal) of a CGT asset acquired (or disposed of) on the exercise of an option to which Division 134 of the Income Tax Assessment Act 1997 (ITAA 1997) applies? | The Determination sets out the Commissioner’s position on the date of acquisition (or disposal) of a CGT asset. The Determination applies to years of income commencing both before and after its date of issue. |
TD 2017/13 | Income tax: capital gains: if you build a dwelling on land that you acquired before 20 September 1985 (‘pre‑CGT’), are you required to make a choice under section 118‑150 of the Income Tax Assessment Act 1997 (ITAA 1997) to get the main residence exemption? | The Determination sets out the Commissioner’s position on main residence exemptions. The Determination applies to years of income commencing both before and after its date of issue. |
TD 2017/14 | Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986 what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2017? | The Determination sets out the Commissioner’s position on the car parking threshold for the Fringe Benefits Tax year commencing on 1 April 2017. The Determination applies to the FBT year commencing on 1 April 2017. |
CR 2017/30 | Income tax: Tasmania Mines Limited – selective capital reduction and cancellation of shares | The Ruling sets out the Commissioner’s position for ordinary shareholders of Tasmania Mines Limited shares, other than Metroof Industries Pty Ltd. The Ruling applies from 1 July 2016 to 30 June 2017. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
TR 93/17 | Income tax: income tax deductions available to superannuation funds | The Addendum amends Taxation Ruling TR 93/17 to ensure the guidance provided in the Ruling is relevant to contemporary industry practices by clarifying the income tax treatment of certain expenses and adding content and examples in relation to the apportionment of those expenses. The Addendum applies to years commencing both before and after its date of issue. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
TR 2003/5 | Income tax and fringe benefits tax: public benevolent institutions | Withdrawn with effect from 17 May 2017. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued several rulings to clarify various tax issues under the Income Tax Assessment Act 1997 (ITAA 1997) and the Fringe Benefits Tax Assessment Act 1986. These rulings address specific scenarios and policy objectives, such as determining the date of acquisition or disposal of a capital gains tax (CGT) asset under Division 134, the application of the main residence exemption for dwellings built on pre-CGT land, and the car parking threshold for the Fringe Benefits Tax year. The rulings provide authoritative guidance to taxpayers and ensure compliance with the relevant Acts. Additionally, an addendum was issued to update Taxation Ruling TR 93/17, and a ruling regarding public benevolent institutions was withdrawn. These rulings aim to provide clarity and assist taxpayers in understanding their obligations under the tax laws.
Scope and Application
The Commissioner of Taxation has issued various rulings under the Income Tax Assessment Act 1997 and the Fringe Benefits Tax Assessment Act 1986, which apply to taxpayers, including individuals and entities, and govern the interpretation and application of specific tax provisions. For example, TD 2017/12 clarifies the date of acquisition or disposal of a capital gains tax (CGT) asset in relation to options, while TD 2017/13 addresses the requirement for a choice under section 118-150 regarding the main residence exemption for dwellings built on pre-CGT land. TD 2017/14 specifies the car parking threshold for fringe benefits tax purposes for the 2017 financial year. CR 2017/30 provides guidance on the tax consequences for ordinary shareholders of Tasmania Mines Limited shares, excluding Metroof Industries Pty Ltd, for the financial year 2016/2017. The rulings apply to years of income and financial years commencing both before and after their issuance, unless otherwise specified. Additionally, the Commissioner has amended and withdrawn previous rulings to ensure relevance and accuracy in line with evolving industry practices and legislative changes.
Key Provisions
The main provisions of the Commissioner of Taxation's notices include the release of several Taxation Determinations (TD) and one Taxation Ruling (CR), as well as an Addendum and a Withdrawal of a previous ruling. Specifically, TD 2017/12 (paragraphs 1 and 2) sets out the Commissioner's position on the date of acquisition or disposal of a capital gains tax (CGT) asset in the context of options covered by Division 134 of the Income Tax Assessment Act 1997 (ITAA 1997). TD 2017/13 (paragraphs 3 and 4) provides the Commissioner's position on whether a taxpayer must make a choice under section 118-150 of the ITAA 1997 to obtain the main residence exemption for a dwelling built on pre-CGT land. TD 2017/14 (paragraphs 5 and 6) clarifies the car parking threshold for the Fringe Benefits Tax year commencing on 1 April 2017 as per section 39A of the Fringe Benefits Tax Assessment Act 1986. CR 2017/30 (paragraphs 7 and 8) concerns the Commissioner's position on the selective capital reduction and cancellation of shares for ordinary shareholders of Tasmania Mines Limited, excluding Metroof Industries Pty Ltd. The Addendum to TR 93/17 (paragraphs 9 and 10) amends the original ruling to provide updated guidance on income tax deductions available to superannuation funds, relevant for years commencing before and after its issue date. Lastly, TR 2003/5 (paragraph 11) is withdrawn with effect from 17 May 2017, no longer applicable from that date.
The obligations and requirements imposed by these determinations and rulings are primarily informational, guiding taxpayers and entities in their understanding and application of the relevant sections of the ITAA 1997 and Fringe Benefits Tax Assessment Act 1986. For instance, TD 2017/12 and TD 2017/13 provide clarity on the timing and conditions for claiming certain tax exemptions, while TD 2017/14 specifies the car parking threshold for fringe benefits tax purposes. CR 2017/30 addresses a specific scenario involving Tasmania Mines Limited, offering guidance to affected shareholders. The Addendum to TR 93/17 ensures that the guidance on income tax deductions for superannuation funds is up-to-date and relevant. These documents serve to inform taxpayers of their rights and obligations under the tax laws, ensuring compliance and proper application of the relevant provisions.
Breach of the obligations set out in these rulings and determinations can lead to various consequences, including but not limited to, penalties and interest for late or incorrect tax returns, additional assessments, and potential legal action. For instance, if a taxpayer fails to correctly apply the guidance provided in TD 2017/12 or TD 2017/13 in relation to capital gains tax and main residence exemptions, they may face additional tax assessments and penalties for underpayment. Similarly, non-compliance with the car parking threshold specified in TD 2017/14 could result in incorrect fringe benefits tax reporting, leading to penalties. The specific penalties and interest rates are determined by the relevant tax legislation, such as the ITAA 1997 and Fringe Benefits Tax Assessment Act 1986, and can vary based on the nature and severity of the breach. It is important for taxpayers to carefully review and adhere to the guidance provided in these documents to avoid such consequences.