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 2016/11 | Income tax: what is the benchmark interest rate applicable for the year of income that commenced on 1 July 2016 for the purposes of Division 7A of Part III of the Income Tax Assessment Act 1936 and how is it used? | The Determination sets out the Commissioner’s position on the benchmark interest rate for the income year commencing on 1 July 2016. The Determination applies to the income year commencing on 1 July 2016. |
TD 2016/12 | Income tax: capital gains: what is the improvement threshold for the 2016-17 income year under section 108-85 of the Income Tax Assessment Act 1997? | The Determination sets out the Commissioner’s position on the improvement threshold for the 2016‑17 income year. The Determination applies for the 2016‑17 income year. |
CR 2016/46 | Income tax: Returns of share 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 2015 to 30 June 2016. |
CR2016/47 | Income tax and fringe benefits tax: customers of Intellitrac Pty Ltd as trustee for The Calapai Family Trust trading as IntelliTrac who use the IntelliTrac FBT e-Logbook for their log book records. | The Ruling sets out the Commissioner’s position for customers of Intellitrac Pty Ltd as trustee for The Calapai Family Trust trading as IntelliTrac who use the IntelliTrac FBT e‑Logbook for the purposes of section 10 of the Fringe Benefits Tax Assessment Act 1986 or Subdivision 28‑F of the Income Tax Assessment Act 1997. The Ruling applies from 1 April 2016. |
GSTD 2016/2 | Goods and services tax: can Division 142 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) prevent refunds of increasing adjustments made under section 19-50 of the GST Act? | The Determination sets out the Commissioners position in regard to an increasing adjustment made under section 19‑50 which can give rise to an amount of excess GST within the meaning of Division 142. The Determination applies both before and after its date of issue. |
TR 2016/1 | Income tax: effective life of depreciating assets (applicable from 1 July 2016). | The Ruling sets out the Commissioner’s methodology used in making a determination of the effective life of depreciating assets The Ruling applies from 1 July 2016. |
LCG 2016/5 | Foreign resident capital gains withholding regime: the Commissioner’s variation power | The Guideline describes how the Commissioner will apply section 14-235 of Schedule 1 of the Taxation Administration Act 1953, to entities that rely on this Guideline in good faith. The Ruling applies from 1 July 2016. |
LCG 2016/6 | Foreign resident capital gains withholding regime: amount payable to the Commissioner | The Guideline describes how the Commissioner will apply Subdivision 14-D in Schedule 1 of the Taxation Administration Act 1953 in determining the amount to be withheld, to entities that rely on this Guideline in good faith. The Ruling applies from 1 July 2016. |
LCG 2016/7 | Foreign resident capital gains withholding regime: options | The Guideline describes how the Commissioner will apply the law in Subdivision 14-D in Schedule 1 to the Taxation Administration Act 1953 to CGT assets that are options and CGT assets acquired as a result of exercising an option, to entities that rely on this Guideline in good faith. The Ruling applies from 1 July 2016. |
NOTICE OF WITHDRAWAL |
Ruling Number | Subject | Brief Description |
TR 2015/2 | Income tax: effective life of depreciating assets (applicable from 1 July 2015) | Taxation Ruling TR 2015/2 is withdrawn with effect from 1 July 2016. |
Overview
The Commissioner of Taxation has issued a number of rulings and determinations under the authority of the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Fringe Benefits Tax Assessment Act 1986, the A New Tax System (Goods and Services Tax) Act 1999 and the Taxation Administration Act 1953. These rulings and determinations provide guidance on a variety of topics, including the benchmark interest rate applicable for the purposes of Division 7A of Part III of the Income Tax Assessment Act 1936, the improvement threshold for the 2016-17 income year under section 108-85 of the Income Tax Assessment Act 1997, and the Commissioner's variation power in relation to the foreign resident capital gains withholding regime. The rulings and determinations are intended to assist taxpayers in understanding and complying with their tax obligations.
Scope and Application
The various determinations and rulings issued under the authority of the Commissioner of Taxation, Chris Jordan, pertain to specific areas of income tax, fringe benefits tax, goods and services tax, and the foreign resident capital gains withholding regime. These rulings and determinations are applicable to individuals and entities that are subject to these taxes and are engaged in the relevant transactions or conduct as specified in the respective acts. For instance, TD 2016/11 applies to the income year commencing on 1 July 2016, while CR 2016/46 applies to the period from 1 July 2015 to 30 June 2016. The geographic reach of these rulings is nationwide as they are issued under the Commonwealth of Australia’s taxation laws. The rulings provide clarity on specific tax issues, such as benchmark interest rates, improvement thresholds for capital gains, and the effective life of depreciating assets. They are designed to assist taxpayers in understanding their obligations and can be accessed through the Australian Taxation Office website or via their local branches. These rulings may be subject to change or withdrawal as demonstrated by TR 2015/2 which was withdrawn effective from 1 July 2016.
Key Provisions
The key operative sections of the legislation set out various rulings and determinations issued by the Commissioner of Taxation, each of which applies to specific income years or periods. For example, TD 2016/11 (paragraph 1) outlines the Commissioner’s position on the benchmark interest rate for the income year commencing on 1 July 2016. TD 2016/12 (paragraph 2) provides the Commissioner’s position on the improvement threshold for the 2016-17 income year. These rulings and determinations are pivotal as they provide clarity and guidance on particular tax issues, ensuring taxpayers can accurately calculate their tax liabilities or entitlements.
The obligations imposed by these rulings and determinations are primarily on taxpayers and entities affected by the specific provisions. For instance, CR 2016/46 (paragraph 4) requires holders of ordinary shares in IPE Limited to adhere to the Commissioner’s position on returns of share capital from 1 July 2015 to 30 June 2016. Similarly, TR 2016/1 (paragraph 7) imposes the obligation on taxpayers to apply the Commissioner’s methodology for determining the effective life of depreciating assets from 1 July 2016. These obligations ensure that taxpayers are informed and compliant with the latest tax rulings and determinations.
Breaches of the provisions outlined in these rulings and determinations can lead to various consequences. For example, if taxpayers fail to comply with the Commissioner’s position on the benchmark interest rate or the improvement threshold, they may face reassessments or penalties. While the specific penalties are not detailed in the provided text, breaches of tax laws generally can lead to civil or criminal penalties, including fines and imprisonment. The exact penalties depend on the nature and severity of the breach, with maximum penalties varying based on the specific tax law violated.