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 |
CR 2013/54 | Fringe benefits tax: employer clients of Mercurien Limited who use the BetterDriver telematics and reporting system for car log book records and for odometer records. | The Ruling sets out the Commissioner’s opinion for those employer clients of Mercurien Limited who use the BetterDriver telematics and reporting system for car log book record and odometer record keeping requirements. The Ruling applies from 10 May 2013. |
CR 2013/55 | Income tax: Australia and New Zealand Banking Group Limited – ANZ Capital Notes | The Ruling sets out the Commissioner’s opinion for 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. |
NOTICE OF ADDENDA |
Ruling Number | Subject | Brief Description |
MT 2008/2 | Shortfall penalties: administrative penalty for taking a position that is not reasonably arguable | The Addendum amends Miscellaneous Taxation Ruling MT 2008/2 to recognise that the lack of reasonably arguable position shortfall penalty contained in Division 284 of Schedule 1 to the Taxation Administration Act 1953 (TAA) applies to petroleum resource rent tax with effect from the 1 July 2012. This follows the amendments to the TAA made by Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013. The Addendum applies on and from 1 July 2012, the day of effect of the amendments applying the reasonably arguable position penalty to petroleum resource rent tax. |
GSTR 2004/1 | Goods and services tax: reduced credit acquisitions | The Addendum amends Goods and Services Tax Ruling GSTR 2004/1 to reflect amendments made to the A New Tax System (Goods and Services Tax) Regulations 1999 by the A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No. 1). The Addendum also makes other minor amendments. The Addendum applies on and from 1 July 2012. |
TR 2005/5 | Income tax: ascertaining the right to tax United States (US) and United Kingdom (UK) resident financial institutions under the US and the UK Taxation Conventions in respect of interest income arising in Australia | The Addendum amends Taxation Ruling TR 2005/5 to take into account the removal of Australia’s double tax treaties from the International Tax Agreements Act 1953. It also reflects the change to the UK Financial Services Authority, which has now become two separate regulatory authorities and its website is no longer updated. The list of UK banks is now published by the Prudential Regulation Authority which is part of the Bank of England. The Addendum also updates references to the US Convention. The Addendum applies on and from 1 April 2013. |
NOTICE OF ADDENDUM TO WITHDRAWAL |
Ruling Number | Subject | Brief Description |
PR 2006/49 | Income tax: Australian South Sea Pearl Project 2006 (Retail) | The Addendum amends Product Ruling PR 2006/49W to provide information about the consequences of a material difference having occurred in relation to the Project. The Addendum applies on and from 24 July 2013. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
PR 2007/21 | Income tax: Arafura Pearl Project 2007 | Product Ruling PR 2007/21 is withdrawn with effect from today. |
PR 2007/83 | Income tax: Arafura Pearl Project 2008 | Product Ruling PR 2007/83 is withdrawn with effect from today. |
PR 2009/16 | Income tax: Arafura Pearl Project 2009 | Product Ruling PR 2009/16 is withdrawn with effect from today. |
PR 2009/55 | Income tax: Arafura Pearl Project 2010 | Product Ruling PR 2009/55 is withdrawn with effect from today. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued several rulings and amendments to rulings under the Tax Administration Act 1953. These rulings, which can be accessed from the Australian Taxation Office's website, aim to provide clarity and guidance on various tax matters. The rulings cover diverse topics, such as fringe benefits tax for employers using specific telematics systems, income tax implications for investments in particular financial instruments, and penalties related to positions that are not reasonably arguable. Furthermore, the rulings address administrative changes, such as updates to goods and services tax regulations and adjustments to tax treaties with the United States and the United Kingdom. Additionally, certain product rulings related to specific projects have been withdrawn, reflecting changes in circumstances or project outcomes. The objective of these rulings is to ensure taxpayers and practitioners have the necessary information to comply with current tax laws and regulations.
Scope and Application
The Gazetted Notice issued by the Commissioner of Taxation, Chris Jordan, details various rulings and addenda that impact different sectors and transactions within the Australian tax framework. CR 2013/54 pertains to fringe benefits tax, specifically addressing employer clients of Mercurien Limited who employ the BetterDriver telematics and reporting system for maintaining car log book and odometer records. This ruling is applicable from 10 May 2013 and is tailored to provide clarity on tax obligations for these specific arrangements. CR 2013/55 focuses on income tax for investors holding ANZ Capital Notes issued by Australia and New Zealand Banking Group Limited, effective from 1 July 2013 to 30 June 2024. The Addendum to MT 2008/2 expands the scope of shortfall penalties to include petroleum resource rent tax, effective from 1 July 2012, following legislative amendments. GSTR 2004/1 is updated to reflect changes in goods and services tax regulations, also applying from 1 July 2012. TR 2005/5 is amended to account for changes in double tax treaties and updated references to UK and US tax conventions, effective from 1 April 2013. Additionally, PR 2006/49 is amended to address consequences of material differences in the Australian South Sea Pearl Project 2006 (Retail), effective from 24 July 2013, while several product rulings related to the Arafura Pearl Project are withdrawn effective immediately. These rulings and addenda collectively ensure compliance and clarity in specific tax obligations and applications across various industries and transactions within Australia.
Key Provisions
The Commissioner of Taxation has issued several rulings and addenda to existing rulings, which are detailed in the Gazette (C2013G01136). CR 2013/54 pertains to fringe benefits tax for employer clients of Mercurien Limited using the BetterDriver telematics system for car log book and odometer records. It clarifies the Commissioner's position on these records and applies from 10 May 2013. CR 2013/55 addresses income tax concerning investors in non-cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured notes issued by Australia and New Zealand Banking Group Limited, effective from 1 July 2013 until 30 June 2024.
These rulings impose specific obligations on the parties involved. Employers using the BetterDriver system must ensure that their records comply with the guidelines set out in CR 2013/54. Similarly, investors in ANZ Capital Notes must adhere to the income tax provisions detailed in CR 2013/55. The Addendum to MT 2008/2, concerning shortfall penalties for taking a position that is not reasonably arguable, applies to petroleum resource rent tax from 1 July 2012, and requires taxpayers to ensure their positions are reasonably arguable to avoid penalties. The Addendum to GSTR 2004/1, effective from 1 July 2012, updates provisions regarding reduced credit acquisitions under the GST law, affecting those who make or intend to make such acquisitions.
Failure to comply with the provisions of these rulings and addenda can result in various consequences. For instance, under MT 2008/2, penalties may apply for taking a position that is not reasonably arguable. The specific penalty is not stated in the text, but it is generally aligned with the administrative penalty provisions in the Taxation Administration Act 1953. Similarly, non-compliance with the GST reduced credit acquisition rules may lead to financial penalties or adjustments as per the A New Tax System (Goods and Services Tax) Regulations 1999. The withdrawal of certain Product Rulings, such as PR 2007/21, PR 2007/83, PR 2009/16, and PR 2009/55, means that the specific tax treatment previously afforded under these rulings is no longer applicable from the date of withdrawal. This may necessitate adjustments in tax planning and compliance for those affected.