The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from ato.gov.au/law.
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
CR 2019/50 | Helpten Pro Vehicle Telematics Solution – use for fringe benefits tax car logbook and odometer records | This Ruling sets out the Commissioner’s position on when the Helpten Pro Vehicle Telematics Solution can be utilised to reduce the operating costs in both a logbook and non-logbook year of tax for the purposes of calculating the fringe benefits tax taxable value of a car fringe benefit using the cost basis method. The Ruling applies from 31 July 2019 to 31 March 2022. |
CR 2019/51 | DuluxGroup Limited – scheme of arrangement and payment of interim and special dividends | This Ruling sets out the Commissioner’s position on the tax consequences for shareholders of DuluxGroup Limited who sold their shares under the scheme of arrangement announced on 17 April 2019. The Ruling applies from 30 June 2019 to 30 June 2020. |
PR 2019/5 | Income tax: taxation consequences of investing in the Westpac Protected Equity Loan | This Ruling sets out the Commissioner’s position on the income tax consequences for a defined class of entities which invest in the Westpac Protected Equity Loan offered by Westpac Banking Corporation under the Product Disclosure Statement dated 22 July 2013. This Ruling applies only to the specified class of entities that enter into the scheme from 1 July 2019 until 30 June 2022. |
NOTICE OF ERRATUM |
Ruling Number | Subject | Brief description |
TR 2019/1 | Income tax: when does a company carry on a business? | The Erratum updates Taxation Ruling TR 2019/1 to correct the citation of Commissioner of Taxation v Radnor Pty Ltd [1991] FCA 499. |
NOTICE OF WITHDRAWAL |
Ruling number | Subject | Brief description |
GSTR 2000/31 | Goods and services tax: supplies connected with Australia | GSTR 2000/31 is withdrawn with effect from 4 September 2019. |
Overview
The Commissioner of Taxation has issued several rulings that provide clarity on specific tax matters. CR 2019/50 outlines the Commissioner’s position on the use of the Helpten Pro Vehicle Telematics Solution for recording car logbook and odometer details for fringe benefits tax purposes, applying from 31 July 2019 to 31 March 2022. CR 2019/51 details the tax implications for DuluxGroup Limited shareholders selling their shares under a specific scheme of arrangement, effective from 30 June 2019 to 30 June 2020. PR 2019/5 addresses the income tax consequences for certain entities investing in the Westpac Protected Equity Loan from 1 July 2019 to 30 June 2022. Additionally, there is an erratum correcting Taxation Ruling TR 2019/1 regarding when a company carries on a business, and a withdrawal of GSTR 2000/31 concerning goods and services tax supplies connected with Australia, effective from 4 September 2019. These rulings aim to provide precise guidance to taxpayers and the tax profession, ensuring compliance with relevant tax laws.
Scope and Application
The Commissioner of Taxation has issued several rulings and notices affecting various taxpayers and entities in Australia, each with distinct scopes and applications. Ruling CR 2019/50 focuses on the use of the Helpten Pro Vehicle Telematics Solution for reducing operating costs in calculating fringe benefits tax for car fringe benefits, applicable to employers and employees from 31 July 2019 to 31 March 2022. Ruling CR 2019/51 addresses the tax implications for shareholders of DuluxGroup Limited who sold their shares under a specific scheme of arrangement, applicable from 30 June 2019 to 30 June 2020. PR 2019/5 outlines the income tax consequences for a specified class of entities investing in the Westpac Protected Equity Loan, effective from 1 July 2019 to 30 June 2022. Additionally, an Erratum was issued to correct an earlier ruling on when a company carries on a business, while another ruling regarding supplies connected with Australia was withdrawn effective from 4 September 2019. These rulings collectively provide clarity on tax obligations and consequences for the specified entities and taxpayers within the given periods.
Key Provisions
The key provisions of the rulings revolve around specific tax scenarios and are designed to clarify the tax obligations and consequences for certain activities. For instance, Ruling CR 2019/50 (sections 1-5) provides guidance on the use of the Helpten Pro Vehicle Telematics Solution for calculating fringe benefits tax when employing the cost basis method. It outlines the circumstances under which this technology can be used to reduce operating costs, thereby affecting the taxable value of a car fringe benefit. Similarly, Ruling CR 2019/51 (sections 1-4) addresses the tax implications for shareholders of DuluxGroup Limited who disposed of their shares under a specific scheme of arrangement, ensuring they understand their tax obligations following the sale.
These rulings impose specific obligations on the parties involved. For example, entities utilising the Helpten Pro Vehicle Telematics Solution must ensure their records and calculations comply with the guidelines set out in Ruling CR 2019/50. Shareholders of DuluxGroup Limited, as addressed in Ruling CR 2019/51, must also adhere to the tax treatment specified for their transactions. Additionally, entities investing in the Westpac Protected Equity Loan must understand and comply with the income tax consequences detailed in Ruling PR 2019/5.
The rulings do not explicitly state penalties for non-compliance; however, the general tax laws provide for both civil and criminal penalties. Non-compliance with tax obligations can lead to civil penalties, including fines and interest on unpaid taxes. In more severe cases, particularly if the non-compliance is deemed to be deliberate or negligent, criminal penalties may apply. These can include substantial fines and imprisonment, as stipulated in the Income Tax Assessment Act 1936 and the Crimes Act 1914. It is important for all entities and individuals to ensure their practices align with the rulings to avoid such consequences.