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 2013/4 | Fringe benefits tax: reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living‑away‑from‑home allowance fringe benefit, for the fringe benefits tax year commencing on 1 April 2013. | The Determination sets out the amounts that the Commissioner considers reasonable under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living‑away‑from‑home‑allowance fringe benefit for the fringe benefits tax (FBT) year commencing on 1 April 2013. The Determination applies to the FBT year commencing on 1 April 2013. |
GSTD 2013/1 | Goods and services tax: when a payment for a supply fails, is a failed payment fee charged by the supplier consideration for a supply? | The Determination outlines the Commissioners view on the payment of a failed payment fee. The Determination applies both before and after its date of issue. |
CR 2013/15 | Income tax: Leighton Holdings Limited Equity Incentive Plan | The Ruling outlines the consequences for employees of Leighton Holdings Limited or wholly owned subsidiaries of the Leighton Holdings Limited Group of companies. The Ruling applies from 1 January 2012. |
CR 2013/16 | Income tax: Department for Communities and Social Inclusion (South Australia) Individualised Funding Program | The Ruling outlines the consequences for people with a disability who have entered into an Individualised Funding Agreement with the Department for Communities and Social Inclusion to receive payments under the Individualised Funding Program. The Ruling applies from 1 January 2013. |
PR 2013/3 | Income tax: tax consequences for an investor in a Westpac Annuity Deposit | The Ruling outlines the tax consequences for an investor in a Westpac Annuity Deposit. The Ruling applies prospectively from 27 February 2013, the date it is published. |
NOTICE OF ADDENDUM |
Ruling Number | Subject | Brief Description |
CR 2012/76 | Income tax: Transport Portfolio (Victoria) Voluntary Departure Program 2012‑13 Early Retirement Scheme | The Addendum amends CR 2012/76 to reflect a variation to extend the time period for eligible employees to express an interest in the early retirement scheme and the time period for when an offer will be made. The Addendum applies on and from 5 September 2012. |
PR 2010/17 | Income tax: deductibility of interest in relation to investment in Macquarie Flexi 100 Trust June 2010 Offer (Class H to P Units) – limited recourse borrowings | The Addendum amends PR 2010/17 to incorporate amendment to Division 247 of the Income Tax Assessment Act 1997 to adjust the benchmark interest rate. The Addendum applies on and from 30 June 2010. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
GSTA TPP 065 | Goods and services tax: is GST payable on a dishonoured cheque fee? | Goods and Services Tax Advice GSTA TPP 065 is withdrawn with effect from today. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued several rulings under the Commissioner of Taxation Act 1963 to provide clarification on various tax matters. These rulings were introduced to address specific tax issues and provide guidance to taxpayers. The rulings include TD 2013/4 which sets out the reasonable amounts for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the FBT year commencing on 1 April 2013, GSTD 2013/1 which outlines the Commissioner's view on the payment of a failed payment fee, CR 2013/15 and CR 2013/16 which outline the consequences for employees of Leighton Holdings Limited or wholly owned subsidiaries of the Leighton Holdings Limited Group of companies and for people with a disability who have entered into an Individualised Funding Agreement with the Department for Communities and Social Inclusion to receive payments under the Individualised Funding Program respectively. The policy objective of these rulings is to provide clarity and certainty to taxpayers and to assist them in complying with their tax obligations.
Scope and Application
The Commissioner of Taxation, Chris Jordan, has issued several rulings and notices relating to various aspects of taxation law, including fringe benefits tax (FBT), goods and services tax (GST), and income tax. The rulings cover topics such as reasonable amounts for food and drink expenses under section 31G of the Fringe Benefits Tax Assessment Act 1986 for the FBT year commencing 1 April 2013, the consideration for a supply when a failed payment fee is charged, and the tax consequences for specific entities and individuals, such as employees of Leighton Holdings Limited, individuals receiving payments under the Individualised Funding Program, and investors in a Westpac Annuity Deposit. The rulings apply from specific dates, ranging from 1 January 2012 to 27 February 2013. Additionally, amendments to certain rulings have been made to reflect changes in eligibility periods and interest rates, and a goods and services tax advice has been withdrawn. The rulings and notices are applicable across Australia, and their scope is limited to the specific circumstances and dates outlined in each determination.
Key Provisions
The Commissioner of Taxation has issued several rulings and addenda that provide clarification on specific aspects of Australian tax law. The operative sections of these rulings outline the Commissioner's view on various tax matters. For example, TD 2013/4 provides the Commissioner’s view on the reasonable amounts for food and drink expenses under section 31G of the Fringe Benefits Tax Assessment Act 1986 for employees receiving a living-away-from-home allowance fringe benefit for the FBT year commencing on 1 April 2013 (TD 2013/4). GSTD 2013/1 addresses whether a failed payment fee charged by a supplier constitutes consideration for a supply, applying both before and after the date of issue (GSTD 2013/1). CR 2013/15 details the tax consequences for employees of Leighton Holdings Limited or its subsidiaries, while CR 2013/16 outlines the tax implications for individuals with disabilities under the Individualised Funding Program with the Department for Communities and Social Inclusion (CR 2013/15, CR 2013/16). PR 2013/3 addresses the tax consequences for investors in a Westpac Annuity Deposit from 27 February 2013 (PR 2013/3). Additionally, CR 2012/76 has been amended to extend the eligibility period for the Transport Portfolio (Victoria) Voluntary Departure Program 2012-13 Early Retirement Scheme (CR 2012/76). PR 2010/17 has also been amended to adjust the benchmark interest rate concerning the Macquarie Flexi 100 Trust June 2010 Offer (PR 2010/17). Finally, GSTA TPP 065, which addressed whether GST is payable on a dishonoured cheque fee, has been withdrawn (GSTA TPP 065).
These rulings and addenda impose specific obligations and requirements on the entities and individuals they govern. Employers providing living-away-from-home allowances must adhere to the reasonable amounts specified in TD 2013/4 when calculating fringe benefits tax. Suppliers charging failed payment fees must determine if such fees constitute consideration for a supply, as outlined in GSTD 2013/1. Employees of Leighton Holdings Limited or its subsidiaries must understand the tax consequences detailed in CR 2013/15, while those under the Individualised Funding Program must be aware of the implications in CR 2013/16. Investors in Westpac Annuity Deposits need to consider the tax consequences specified in PR 2013/3. Additionally, eligible employees in the Transport Portfolio (Victoria) Voluntary Departure Program must comply with the extended time periods in the amended CR 2012/76, and investors in Macquarie Flexi 100 Trust June 2010 Offer must adjust to the new benchmark interest rate in the amended PR 2010/17.
Failure to comply with the obligations and requirements set out in these rulings and addenda can result in various consequences. While the specific penalties are not detailed in the text, breaches of tax law generally can lead to civil or criminal penalties. Civil penalties may include fines, interest on unpaid taxes, and penalties for late lodgment or payment. In more serious cases, criminal penalties can apply, which may include imprisonment, particularly for intentional or negligent tax evasion. The exact penalties depend on the specific breach and the provisions of the relevant tax legislation.