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 2015/12 | Fringe benefits tax: when are the duties of the employment of an employee of an employer who is a government body exclusively performed in, or in connection with, a public hospital or a hospital carried on by a society or association that is a rebatable employer? | The Determination sets out the Commissioner’s position on Fringe Benefits Tax for government body employers and employees. The Determination applies to years of income commencing both before and after its date of issue. |
TR 2015/2 | Income tax: effective life of depreciating assets (applicable from 1 July 2015) | The Ruling sets out the Commissioner’s position on the effective life of depreciating assets for the 2015-16 income year. The Ruling applies from 1 July 2015. |
CR 2015/41 | Income tax: return of capital: GWA Group Limited | The Ruling sets out the Commissioner’s position for holders of ordinary shares in GWA Group Limited. The Ruling applies from 1 July 2014 to 30 June 2015. |
CR 2015/42 | Income tax: returns of capital: IPE Limited | The Ruling sets out the Commissioner’s position for holders of ordinary shares in IPE Limited. The Ruling applies from 1 July 2014 to 30 June 2015. |
CR 2015/43 | Income tax: Bendigo and Adelaide Bank Limited – allotment of convertible preference shares 3 | The Ruling sets out the Commissioner’s position for investors who acquired Convertible Preference Shares 3 in Bendigo and Adelaide Bank Limited. The Ruling applies from 1 July 2014 to 30 June 2024. |
PR 2015/8 | Income tax: tax consequences for a Nominee Investor in the Australian Securities Property Fund | The Ruling sets out the Commissioner’s position for those that invest in the Australian Securities Property Fund offered by Australian Securities Limited. The Product Ruling applies prospectively from 1 July 2014. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
MT 2009/1 | Miscellaneous taxes: notification requirements for an entity under section 105-55 of Schedule 1 to the Taxation Administration Act 1953 | The Addendum amends Miscellaneous Taxation Ruling MT 2009/1 to reflect the recent decision of the Administrative Appeals Tribunal in North Sydney Developments Pty Ltd v. Federal Commissioner of Taxation [2014] AATA 363 in relation to notification requirements under section 105-55 in Schedule 1 to the Taxation Administration Act 1953. The Addendum applies on and from the date of issue. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
TR 2014/4 | Income tax: effective life of depreciating assets (applicable from 1 July 2014) | Taxation Ruling TR 2014/4 is withdrawn with effect from 1 July 2015. |
NOTICE OF PARTIAL WITHDRAWAL |
Ruling Number | Subject | Brief Description |
TR 2014/7 | Income tax: foreign currency hedging transactions - applying the foreign income tax offset limit under section 770-75 of the Income Tax Assessment Act 1997 and determining the source of foreign currency hedging gains | The Partial Withdrawal updates TR 2014/7 to remove the references to how the source of a foreign currency hedging gain is determined. The Commissioner’s view is that, while source is always a practical matter of fact, the place where the hedge contract is formed is likely to be the most important factor in determining source for such gains. Subject to express or implied terms to the contrary, the place where the contract is formed will be the place where the acceptance is communicated to. Industry has advised the Commissioner that the administrative approach set out in paragraphs 13 and 14 of the original ruling has been understood as being an interpretative view, rather than an alternative administrative approach, and has raised a number of concerns in relation to the administrative approach. As a consequence, the parts of the Ruling addressing source have been removed. Further industry consultation on the alternative administrative approach is being conducted. The Partial Withdrawal applies on and from 1 July 2015. |
Overview
The Taxation Administration Act 1953, enacted by the Australian Parliament, was introduced to streamline and provide a clear framework for the administration of taxation laws. This legislation aimed to address the need for a comprehensive and efficient system to collect taxes and enforce compliance, ensuring the smooth operation of the tax system and reducing the burden on taxpayers and the Australian Taxation Office. The policy objective behind this Act was to establish a robust and effective administrative structure that would facilitate the proper collection and enforcement of taxes, thereby supporting the government's fiscal policy objectives and ensuring equitable and efficient tax management. The Act provides the legislative foundation upon which various taxation rulings and determinations, such as those published by the Commissioner of Taxation, are based, ensuring that tax administration is conducted in a manner that is both legally sound and practically effective.
Scope and Application
The Commissioner of Taxation has issued several rulings and amendments that apply to various aspects of income tax and fringe benefits tax, impacting individuals and entities within the Australian jurisdiction. These rulings cover specific situations such as the determination of effective life of depreciating assets, the tax consequences for specific share investments, and the source of foreign currency hedging gains. The rulings apply to income years starting before and after their issuance dates, with certain rulings applying from specific dates to others, providing clarity on tax obligations and interpretations. The rulings also include amendments and withdrawals of previous rulings to reflect recent tribunal decisions and to address administrative approaches that have raised concerns among industry stakeholders. The Commissioner’s rulings are applicable nationally and provide guidance to taxpayers, ensuring compliance with the relevant taxation laws.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued a series of determinations and rulings under the Taxation Administration Act 1953, which provide clarification and guidance on specific aspects of tax law. These include TD 2015/12, which provides the Commissioner's position on Fringe Benefits Tax for government body employers and employees, specifically when the duties of an employee are performed in or in connection with a public hospital or a hospital carried on by a society or association that is a rebatable employer (section 55). TR 2015/2 sets out the Commissioner’s position on the effective life of depreciating assets applicable from 1 July 2015 (section 40-100). CR 2015/41 to CR 2015/43, and PR 2015/8 detail the Commissioner's positions on various income tax matters including returns of capital for specific companies and the tax consequences for a Nominee Investor in the Australian Securities Property Fund. MT 2009/1 has been amended by an addendum to reflect recent tribunal decisions on notification requirements under section 105-55 of the Taxation Administration Act 1953.
These determinations and rulings impose obligations on taxpayers and entities to comply with the Commissioner's position as set out. For example, employers and employees must ensure that the duties of employment are correctly classified for Fringe Benefits Tax purposes, while entities and individuals involved in depreciating assets, share investments, or property funds must understand and comply with the specific tax treatments outlined in the relevant rulings. Furthermore, entities subject to notification requirements under section 105-55 must adhere to the updated guidelines as set out in the addendum to MT 2009/1.
Breach of the provisions outlined in these rulings can result in various consequences. Although the specific offences and penalties are not detailed in the provided text, typically, non-compliance with these rulings can lead to penalties under the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953. These penalties can include fines, interest on unpaid taxes, and potential legal action. The exact penalties depend on the nature and severity of the breach, and can vary significantly. For instance, penalties for failing to lodge a tax return on time can include fines up to a certain percentage of the tax owed, while more serious breaches, such as fraud or wilful neglect, can attract higher penalties and even criminal charges.