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 |
GSTD 2015/2 | Goods and services tax: what is a ‘destination outside the indirect tax zone’ for the transport of a passenger by sea under item 1(a) and item 4 of subsection 38‑355(1)? | The Determination sets out the Commissioner’s position on what is a destination outside the indirect tax zone for the transport of a passenger by sea. The Determination applies both before and after its date of issue. |
TD 2015/18 | Income tax: consolidation: Division 7A: what is the lodgment day for a private company that is a subsidiary member of a consolidated group for the purposes of subsection 109D(6) of Division 7A of Part III of the Income Tax Assessment Act 1936? | The Determination sets out the Commissioner’s position on the lodgement day for a private company that is a subsidiary member of a consolidated group. The Determination applies to years of income commencing both before and after its date of issue. |
TD 2015/19 | Income tax: if a retiring partner is entitled to an amount representing their individual interest in the net income of the partnership for an income year, will section 92 of the Income Tax Assessment Act 1936 apply? | The Determination sets out the Commissioner’s position on a retiring partner’s individual interest in net income for the partnership for an income year. The Determination applies to assessments made after 3 June 2015. |
NOTICE OF ERRATUM |
Ruling Number | Subject | Brief Description |
GSTD 2012/2 | Goods and services tax: what are the goods and services tax consequences following the sale of commercial premises that are subject to a lease? | The Erratum corrects a typographical error within the Addendum to GSTD 2012/2 which published on 23 September 2015. The Erratum applies on and from 23 September 2015. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a series of rulings and an erratum to clarify certain tax obligations under the Income Tax Assessment Act 1936 and the Goods and Services Tax (GST) Act. These determinations aim to provide certainty and guidance to taxpayers by elaborating on the interpretation of specific tax provisions. For instance, Ruling GSTD 2015/2 addresses the definition of a 'destination outside the indirect tax zone' for sea transport of passengers, while TD 2015/18 and TD 2015/19 provide clarity on the lodgment day for a private company within a consolidated group and the application of section 92 of the Income Tax Assessment Act 1936 to retiring partners, respectively. These rulings are designed to assist taxpayers in complying with their obligations by providing definitive positions on complex tax issues. The erratum to Ruling GSTD 2012/2 rectifies a typographical error, ensuring the accuracy of the tax guidance provided. These determinations collectively aim to enhance transparency and compliance within the tax system.
Scope and Application
The gazetted notice from the Commissioner of Taxation provides several determinations and corrections related to various taxation rulings, impacting a range of taxpayers. GSTD 2015/2 pertains to the definition of a 'destination outside the indirect tax zone' in relation to the transport of passengers by sea, which applies both before and after the ruling's issuance. TD 2015/18 addresses the lodgment day for a private company that is a subsidiary member of a consolidated group, relevant to income years commencing both before and after the ruling's date. TD 2015/19 clarifies the application of section 92 of the Income Tax Assessment Act 1936 to retiring partners' individual interests in partnership net income, effective for assessments made after 3 June 2015. Additionally, the notice includes an erratum correcting a typographical error in GSTD 2012/2, applicable from 23 September 2015. These rulings and erratum are intended to provide clarity and guidance to taxpayers in relation to their obligations under the relevant Acts, ensuring compliance with the tax laws.
Key Provisions
The main sections of this legislation pertain to rulings and errata issued by the Commissioner of Taxation. Specifically, Rulings GSTD 2015/2, TD 2015/18, and TD 2015/19 provide clarifications on matters of GST, income tax consolidation, and the application of section 92 of the Income Tax Assessment Act 1936, respectively. These rulings are intended to guide taxpayers on specific tax obligations and entitlements. Additionally, the Errata section corrects a typographical error in a previously published ruling, GSTD 2012/2, concerning the GST consequences of selling commercial premises under lease. Each of these determinations applies retroactively to the extent specified, providing taxpayers with clarity on their obligations and rights under the tax laws.
The obligations imposed by these rulings and errata are primarily informational and interpretative. For taxpayers, these documents serve to clarify ambiguous provisions of the tax law, ensuring they understand their obligations and entitlements. For instance, Ruling TD 2015/18 clarifies the lodgment day for private companies that are part of a consolidated group, while Ruling TD 2015/19 explains the applicability of section 92 in the context of a retiring partner's interest in partnership income. These rulings help taxpayers comply with their tax obligations by providing authoritative guidance on complex or ambiguous tax provisions.
In terms of consequences for non-compliance, the primary concern is not a penalty but rather the potential for taxpayers to misunderstand their obligations, leading to inadvertent non-compliance. However, the rulings themselves do not create new penalties or criminal offences. Instead, they clarify existing provisions, which can indirectly affect how tax authorities interpret and enforce compliance. For example, if a taxpayer fails to correctly apply the guidance provided in Ruling TD 2015/18, they may face scrutiny or penalties under the existing tax laws. Similarly, an incorrect application of the guidance in Ruling TD 2015/19 could lead to disputes over the proper application of section 92, potentially resulting in reassessments or audits.
The Errata section corrects a previous error, which, if not corrected, could have led to misinterpretation of the GST consequences of selling leased commercial premises. While the Errata itself does not impose new penalties, the failure to apply the corrected information could result in incorrect GST filings, potentially leading to penalties under the GST laws. These penalties can include fines and interest on any unpaid GST, depending on the nature and extent of the error.